Reconnaissance Energy (Africa) Ltd V.RECO

So at what point does.....

[Ebenizer3]

roe exercise there option on botswana, hav to think it would add more juice to the sp for reco and roe. any guesses?

[TurnToTheRight]

@Ebenizer3, correct me if I'm wrong, but doesn't ROE hold a 50% working interest in the Botswana acreage? If it a working interest, there is no need to exercise anything, as it is not an option, but an inherent interest (the other 50% WI is RECO's) tied to the lease. I could be wrong, but I am pretty sure ROE has a WI and not an option. On the plus side of a split 50/50 WI, ROE would

[Ebenizer3]

https://renaissanceoil.com/news/renaissance-closes-option-agreement-participating-in-the-opening-of-the-kavango-sedimentary-basin/. my understanding of it is they have a 36 month agreement 1 mil in the first 18 months and 1.5 mil in 2nd 18 month period.

[TurnToTheRight]

Thanks @Ebenizer3, you're absolutely correct, it is a farm-in option agreement. I wonder when, and with what priority RECO is going to drill the Bostwana acreage?

[Ebenizer3]

since they just recently signed the license for botswana in June, it has an initial 4yr exploration period. Don't think they can start drilling till the 3yr. First 2yrs are desktop geology,eia something like that. Was just thinking if renaissance exercised there option say like tomorrow that might spark a little more interest. Also wondering what ur thoughts on the pressures in this virgin

[TurnToTheRight]

I see what you're getting at, ROE can act as second disclosure vehicle to drum up more PR should they exercise the option. Do you think that exercising the option, and transferring 50% of the Botswana working interest from RECO to ROE would have a negative impact on the SP of RECO, seeinga s 50% of the value just disappeared? As to your second point... that's a loaded question for sure. I

[Ebenizer3]

I see as a positive, mainly because of the crossover (steinke, telfer,jarvie,steinsberger) the same reason i invested in renaissance is why i invested in reconafrica the team. If anything i thinking along the lines reco and roe becoming one company somewhere down the line. I know renaissance had a director (malaki) who had and I believe is still holding a large block of roe even though he is no

[TurnToTheRight]

If I were ROE I would wait to exercise my option as late as possible, let RECO de-risk as much as possible before making an investment.  I agree with you on XOM (I worked in an NOC/XOM JV in Qatar a couple years ago and the XOM secondees were saying exxon was looking to plow their big money into Guyana & Qatar in the near term), and OXY is a complete mess of debt since overpaying for

[Ebenizer3]

yeah would be interesting to hear that conversation going on in steinke's head bout when to exercise the option. I would say yes to Qatar and Total (forgot them) and agree that BP is looking more to renewable. But I wouldn't entertain any offers from any company from china they are just not trustworthy, or even from lukoil, there's a connection with roe only because they had the

[Ebenizer3]

oh I have one wildcard pick a private company Hilcorp, presently they are tied up in Alaska but they always seem to be a step ahead, they picked up a bunch of acreage in the EF and sold to marthron for a couple of billon then headed to the marcellus and utica shale in ohio before heading to alaska. Don't know if they would even be interested in one of the basins in the kavango but hilcorp is