Reconnaissance Energy (Africa) Ltd V.RECO

Most of the Article is a Rehash

[Redrum180]

Wasn't thrilled with this article, especially the part where the Botswana Ministry of Mineral Resources and Green Technology, MMetla Masire is quoted: 

     "He said the company will be subjected to an environmental impact assessment before any drilling can take place. However, this will not be fracking and will not happen for at least three years," he added. 

     Now this article pertains to the Botswana portion of the claim; RECON's claim is obviously in Namibia as well.

     I am lacking a lot of information so feel free to correct me where necessary.  I don't know when the three years started to run, for one thing.  I don't know if that's a hard-and-fast delay or something normal in the industry.

     If RECON is going to be gathering data for three years, l would expect the kind of news flow we see when gold companies are doing their PEA's.  A constantly growing resource should be positive.  

     I guess my point is if this is the case, the stock's rise -- it seems to me -- would be slower as more and more of the resource is proven up.

     Am I abysmally ignorant or is this useful in any way; I would really like to hear from others about this three-year delay in production, as i read it.  

        https://tntribune.com/canadian-company-presses-ahead-with-oil-exploration-in-southern-africa-despite-opposition/

     

[Redrum180]

   Supplemental: It's stated in the Botswana government letter posted here that RECO has a four-year permit that started running in June 2020.  If the three years is accurate, how does RECO hold the claim?    I'm sure I'm missing something and I apologize if I've inadvertently worried a reader over what is probably a big nothing burger.

[TurnToTheRight]

Oil and gas leases are a contract and typically have a primary term and a secondary term. The primary term in this case would be for 4 years, and if there is no production (usually what triggers the secondary term) than RECO would lose their lease. However, if there was production prior to the expiry of the primary term of the lease, than the secondary term would be valid until production ceased

[Redrum180]

     Thank you for your explanation.  It just struck me that the first year will be up in June and the mining official states that there will only be exploratory drilling for three years. Of course, I'm sure RECO has a contract that protects their interests but it just seemed odd to me.         Thanks again for providing some clarity on this.

[Ebenizer3]

Namibia license started 2015, botswana license 6/20. It's a 4yr process according to the license drilling won't happen until yr 3. I guess the eia happens in yr 2. Not sure if they can accelerate process or not. But that nr has nothing to with namibia.

[farml1234]

What a crock of Bull Manure , we are already drilling and that should tell you it ts a manure artical 

[CoreyB]

I suggest if you are invested that you sell and go the fcuk home.  Zero knowledge about the current operations.  Drill program is NOT to make an oil well.  Drill program is to FIND SOURCE ROCK that MAY contain petroleum.  Proving the resource, not producing it.  Fcuking no-minds spouting off proving their ignorance daily.

[Fredo51545]

Corey, I agree but we're going to look bad if they accidently find flowing oil in any of these research wells. But, I am long so I do not care; look bad, get rich!

[Redrum180]

      Corey, thanks for your kind response!