Reconnaissance Energy (Africa) Ltd V.RECO

congrats

[Matteo1234]

Can you imagine if this thing runs into Botswana ? Low price $10.00 De-Risk $24.00 fair value. as it sits right now. Research on the street. If I become a multi-millionaire I might just move to Namimbia. Looks beautiful. Low population. Wildlife

[Matteo1234]

“As a Petroleum Engineer of 40 years now, having spent a career with major oil companies, and smaller independents, it's hard to emphasize how rare it is for something like this to be a ‘hit’ on the first penetration well drilled based primarily on a geomagnetic survey. This is astounding. If the second well shows anywhere near similar geophysical properties, and further confirms the basin

[Matteo1234]

So, what now? Now, the enterprise value looks a lot more secure.  And my excitement is hard to contain over what they might uncover in well #2. If the first well found these indicators, the results of the second could be … (I’m not even sure how to express it as I am still so excited over the results from the first well.) 

[veryfishy]

This is an exciting play but also very dangerous. Just remember first wells are rarely definitive. Standard oil /imperial  drilled 133 dry holes before they discovered  commercial oil  at Leduc, Alberta in 1947.  Namibian Minister of Mines demanded a postive  press release to save his political skin. The Namibians in authority,  who like all in the region  will

[Chihuahua]

It could take a few more hole for a discovery or a thousand. What's your point? This is a high risk high reward speculative play. We could have drilled an absolute complete duster for our first hole, clearly we did not. Bribery is common in all countries, you just have to understand the system and capitalize from it.

[InvrsContrarian]

Wow one hole drilled and it blew them away enough to make a press release. As per the video they discuss permian basin. That equates to fracking. Clearly the news release says light oil and complete system. So I bet a whole sphere of operations will take place along with the appropriate teams for each section they uncover. But the numbers they are talking about would put Namibia in the top ten for

[Hotshot85]

This does not equate to fracing by Reco. the permian in the US was a producing conventional resource for 90 years prior to secondary Enhance Oil Recovery methods (fracing). They have state on many, many occasions that they are targeting conventional oil traps. The initial seismic data they are shooting for now will help them determine these traps. 

[hydrocarbss]

Yeah, geologists, petroleum engineers haven't learned a thing since 1947 about locating crude deposits from over 10,000,000 drilled oil wells since then.

[veryfishy]

10 million  wells you say. Let's say that is not an  exaggeration. 1% were commercial  petroleum wells -  more than  half were natural gas now at $2.50 per mcf  vs oil at $60. Oil exploration wild cats have a 95%  rate of failure to be commercial.  If the first wildcat 6-2 was so great why was there no drill stem test or water saturation results. And why

[veryfishy]

Your 10,000,000 wells drilled since 1947 declartaion  has an extra zero,  in error I am sure. 550,000 in the United States  since 1945 -- your number should be 1,000,000 globally. And dry holes for exploration onshore are  not 95% (my error) but over 99% non-commercial. Lots of "geological successes" like 6-2 but almost always are commercial failures. Worse being

[hydrocarbss]

You have so many innaccuracies -   I don't. The number of producing wells in the United States reached a high of 1,029,700 wells in 2014 EIA - those are active. The U.S. figures are sobering: More than 3.2 million abandoned oil and gas wells Then there is the rest of the world. Easy 10 million. You spewer of lies.

[veryfishy]

So with   U. S. production of 10 million barrels per day and gas equivalent  @ 1 million wells,  under your numbers,  average production per well is 10 barrels per day (natural gas 6 mcf/d). 

[proff101]

Re living in Namibia.  'I could easily retire there. On my backpacking trip 8 years ago from capetown to Cairo Namibia was by far my favourite country  ( read "I'm 74 and back-packed across Africa - Alone" Toronto star) 

[Matteo1234]

Thats so cool dude. Thats living life. Cheers Bra