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Bullboard - Stock Discussion Forum Reconnaissance Energy (Africa) Ltd V.RECO

Alternate Symbol(s):  RECAF | V.RECO.WT | RCNWF

Reconnaissance Energy Africa Ltd. is a Canada-based oil and gas company. The Company is engaged in the exploration of the Damara Fold Belt and Kavango Rift Basin in the Kalahari Desert of northeastern Namibia and northwestern Botswana. The Company holds interest in a petroleum exploration license no. 0073 (PEL 73) in northeast Namibia and an interest in petroleum exploration rights in northwest... see more

TSXV:RECO - Post Discussion

Reconnaissance Energy (Africa) Ltd > Seismic survey soon to start...
View:
Post by Flintstone60 on Apr 10, 2021 4:59am

Seismic survey soon to start...

Yesterday, the appeal period for the $3 million 450km seismic survey of the Kavango Basin expired. I haven't read anything negative about it anywhere, so I think we will get the EIA very quickly and ReconAfrica can get started with it soon.
 
How important seismic is nowadays can be seen here (-> discord forum). BTW: ReconAfrica is using one of the best seismic survey systems !

auContrarianD — heute um 04:12 Uhr
You guys might like this. From “The Prize” by Daniel Yergin, Chapter 28:
 
...[Armand Hammer’s] persistence paid off. In the autumn of 1966, Occidental struck oil on Number 102. But this paled when compared to what happened on Number 103, forty miles to the west, subsequently called the Idris field. Occidental drilled right under the site of the former base camp of Mobil Oil, which had previously held but then relinquished the concession. The first well came in at forty-three thousand barrels per day; then another at a phenomenal seventy-five thousand barrels per day. Occidental had struck one of the most prolific deposits of oil in the world. It was the use of newly developed seismic technology that had enabled this puny California producer to find what giant Mobil had missed. With the discovery, said Hammer, “All hell broke loose. We became one of the Big Boys.” ...
 
...the Six-Day War left the Suez Canal shut, and so Libyan oil took on an even greater value.... [an] engineering firm, estimated that, on the basis of the discoveries to date, Occidental alone was in possession of three billion barrels of recoverable reserves, almost a third of the reserves discovered at the same time on Alaska’s North Slope! But what could not be done in Alaska—build a pipeline—certainly could be done in Libya. Normally, it would have taken three years to construct a 130-mile pipeline across the desert; but, force-paced, the line was built in less than a year, and Occidental was actually shipping oil to Europe less than two years after receiving its concessions. It was soon producing upwards of eight hundred thousand barrels per day in Libya. From nothing Occidental Petroleum had become the sixth-largest oil-producing company in the world...
 
justdon — heute um 04:27 Uhr
This was on wikipedia:
Proven oil reserves in the United States were 43.8 billion barrels (6.96×109 m3) of crude oil as of the end of 2018, excluding the Strategic Petroleum Reserve.[1] The 2018 reserves represent the largest US proven reserves since 1972.[2] The Energy Information Administration estimates US undiscovered, technically recoverable oil resources to be an additional 198 billion barrels.[3][4]
And Jarvie is estimating 120 billion barrels conservatively.  This is blowing my mind.
 
Dragonballs — heute um 04:27 Uhr
The Permian basin in Texas I believe has hundreds of oil companies tapped into it. All owning plots of land. Imagine 1 company owning all of that and farming out and handling a couple of the best locations for themselves. 
 
Stickarts — heute um 05:10 Uhr
Yes.  At this point we are getting a discount for buying in advance.  Many things could go wrong between now and the announcement.  We are getting a cash discount in exchange for risk.
If/when commercially viable oil is announced (of unknown quantity), you will see a leg-up to $10, $20, $30 range.  That’s when institutional investors will buy in en masse.  They’re happy to see a 2x, 3x, 4x if all major risks are gone as it gets further proven and commodified.  All of us here now are getting discounts to various degrees based upon when we entered the play.  The longer ago you entered, the riskier, the cheaper.  Some of us might see 100x, some 50x, some 20x if this thing strikes.
Comment by TurnToTheRight on Apr 10, 2021 1:18pm
Thanks for the update, on the seismic timing. What seismic company and technology are they using anyways? For future though, I would stay away from sourcing your info from the discord circle-jerk. The quotes you cited were unsubstantiated and anecdotal - just adding to misinformation. People need to learn to cite reputible sources (not wiki) such as the IEA. Likely why many of us on here choose ...more  
Comment by Buyhigheatchips on Apr 10, 2021 6:02pm
Seismic Operations As a result of a competitive bidding process, ReconAfrica has contracted Polaris Natural Resources Inc , Canada's longest standing seismic company to provide acquisition services for its first 2D seismic program. Polaris has conducted over 1,000 seismic projects since 1996 and introduced the first 'low impact seismic crew' into Africa in 2008. This includes ...more  
Comment by Flintstone60 on Apr 11, 2021 3:29am
@TurnToTheRight: Please do not give me advice on where to get my informations. Thank you. The ReconAfrica Discord forum is one of the best forums to get comprehensive information. I have been successfully in the stock market for over 40 years now and have learned a lot about the oil business on discord as well. There are some people who have worked on rigs, some geologists, some with ...more  
Comment by Chihuahua on Apr 11, 2021 10:32am
I am going to have to agree with TurnToTheRight. The ReconAfrica Discord forum is one of the worst platforms I have ever used. The drivel down the chat stream is non-stop and hard to follow. Also, discord is run by a hedge fund. Elon is no fan of that site, it is corrupt. https://www.google.com/amp/s/www.newsweek.com/elon-musk-wallstreetbets-down-even-discord-has-gone-corpo-1565058%3famp=1
Comment by TurnToTheRight on Apr 11, 2021 11:02am
@Flintstone60: You can absolutely get information from discord, but just don't share it, because you are likely spreading incorrect information. Contrast the post that @Buyhigheatchips posted regarding the siesmic (very informative, in depth, detailed, and technical - allowing me to go off and do some of my own DD and think critically). Your post on the other hand was a quote from info cited ...more  
Comment by Flintstone60 on Apr 11, 2021 12:27pm
Misleading information ?? It`s getting funnier and funnier here. Misleading information about the importance of seismic survey in O&G ? Misleading information about proven US oil reserves (wikipedia) ? Misleading information about permian Basin ? Misleading information about someones opinion when institutional Investors probably begin to invest ? On february 16th, someone on discord did post ...more  
Comment by Chihuahua on Apr 11, 2021 2:14pm
I think the point is Discord is a terrible platform with a few knowledgeable folks. Yes there may be some good information but overall the drivel is non-stop and the fact that a hedge fund runs it is not great for the retail investor, the little guy.
Comment by Chas15 on Apr 11, 2021 3:24pm
There's some good points on there but 99% of it is a joke. A couple months ago it was a circle jerk talking about starting a charity for the people of Namibia once RECO hit $100 LOL. Or that C6dude (he's a moron) tweeting to Leonardo Dicaprio about RECO and how he'd start a charity thinking he'd respond. Besides the couple of people who actually are knowledgeable about Oil and Gas, ...more  
Comment by Ca01an on Apr 12, 2021 9:11am
I recall back in early January before they announced drilling had started, C6 mentioning he had sold all his shares, was bearish about the near term prospects and was waiting until it went down before getting back in, amazing how quickly people can change The discord is filled with people who are obsessed with the stock and any new news gets broken there first, there are some people are ...more  
Comment by Chas15 on Apr 12, 2021 10:06am
I don't really see Haywood's breakdown of the stock that useful, as they've stated they have investment in RECO. Their short term price target of $7 is a self serving view. Obviously they aren't giving a non-bias opinion. 
Comment by NFKRS17 on Apr 12, 2021 11:19am
The analyst sees the same data as you do, and writes up a report based on Sproule's estimate.  Before RECO started drilling well #1, no one had a concrete idea what to expect, at least as far as flow rates, permeability, porosity etc are concerned.  He has given you a whole table on valuation based on barrels in the ground. I think he has done a reasonably good job.  It is good ...more  
Comment by Chas15 on Apr 12, 2021 11:24am
So you can honestly sit there and say that there is no ulterior motives for why Haywood has a high shortterm price target? It wasn't coincidental that Haywood release came out right as RECO ran up to $5. 
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