Reconnaissance Energy (Africa) Ltd V.RECO

Financing next steps

[petesfreak15]

Things are lining up nicely.

1st thing need to do is absorb ROE and get that off the table. 

Then the $$ from financing I assume (some of it) will be used to 'support' locals and governments while things are getting built. Using some of that money to build wells, schools ect that are 'good publicity'.  Ok with this, once ROE down and well results in, next stage is huge.

[Moneycat]

Will RECO do a JV with a major or will RECO just get bought out fully for an insane amount of money ??  

[TurnToTheRight]

What's your idea of an insane amount of money? I'm honestly wanting to know because regardless of what others on this board think, there is no way RECO is being bought out for $50 billion, or even $25 billion in the near future. I would think it would depend on the appetite of majors to form JV's. Likely RECO would sit back and let the other party operate. It may also take the form of

[RHertig]

Our stock price would have to reach an insane amount to get bought out for an insane amount. No one is going to come in and offer a hundred times the stock price. It just doesn't work that way. They might offer a double and start a bidding war that goes up to two or three times.

[ratsnake220]

Buouts initiate at 20 to 25% premium.....But again why should shareholders agree???    Sure hard to put a evaluation at this time...