Reconnaissance Energy (Africa) Ltd V.RECO

Some Big Numbers...for comparison

[AUborealis]

Saudi Aramco

Mkt Cap                $1.9 Trillion USD

Reserves               270 Billion barrels

Oil Production       ~12,000,000 bbls/day (4.3 Bn/bbls/yr)

[teheran10]

....and training at $12 CAD.  cannot compare Saudi stock market with a 'free country' stock market. Apples and oranges. 

[TurnToTheRight]

@AUBorealis you bring up a very good point. Compare those numbers to Exxon: market cap = 251 billion, 2.53 million bbl/day, and proved reserves of 15.2 billion bbl. Now, my question to the board is, how much value of the market caps of Exxon and Saudi Aramco are due to the flowing (produced) barrels, and how much for reserves? The value of a flowing bbl is much much higher than that of a bbl of

[Moneycat]

Saudi Aramco has over 250 billion barrel reserve....over 12 million barrels a day producing with a total market cap of over 7 trillion SAR ( which is over 2 Trillion canadian ) Definately producing numbers are a big reason on why iys has so high of a cap but to think RECO might have as much as half of Saudi Aramco reserves will make this SP go well past the current price.  How high...time

[hydrocarbss]

Exxon and Sauds also own a myriad of related petroleum assets. Exxon: for instance just one of their asset classes As one of the world’s largest refiners, we have nearly 5 million barrels per day of distillation capacity at 21 refineries. An integrated, global manufacturing and logistics footprint enables reliable supply of high-quality, high-value products. It would not be measuring equivalent

[Buyhigheatchips]

When you say "not much for production" do you mean ever? With farm-outs couldn't production be quite significant in say 5 years?    

[TurnToTheRight]

Definitely not indefinitely. But SP valuations are being thrown around that rival CNRL (>1 million bbl/day production). My guess is exploration activities well into 2022, and 1-2 years of appraisal  activities (there is some production there, but not much). Then the development phase (2-3 years off likely), which needs to include surface facilities and pipeline/midstream infrastructure

[Moneycat]

You seem like quite a knowledgable person !!  You know who else might be kind of  knowledgable....Haywood securities...who just announced a 36 million dollar bought deal that is to close within 2 weeks at a higher price than the current SP.  I do not like these predictions of 150-250 but there is no reason this can't be 20-30 a share within a few months if these holes and

[TurnToTheRight]

You hit on my point exactly, and I absolutely defer to Haywood's SP prediction. It takes a ton of information, knowledge, and experience to formulate SP valuation estimates (and frankly, financial guys do a good job with the numbers they are given, but have a tough time contextualizing exactly how overly technical information may adjust risk - like the fact that carbonates were encountered and

[Galaxym31]

"pipe dream" good one 

[TurnToTheRight]

So under what scenario can you justify $150 SP ($30 billion market cap) in 2 years? How much production do you think there will be in 2 years? There is always the possibility of investor speculation driving the price to $150, but can we all PLEASE stop trying to justify speculation with any semblance of reason or extrapolation of legitimate estimates (like Jarvie's)

[Tarheel89]

this is an interesting way of phrasing the question. My buddy and I are both long RECAF and were discussing this, and stocks in general, yesterday. -I remarked that true investing in stocks, when stocks first started, meant I invest in your business and I hold forever and get a share of your profits. That shifted to a transition period where we got dividends but now thats too slow for the modern

[InvrsContrarian]

You guys are reading too much into the stock market. And hence have new found wealth and cannot comprehend how you accumulated such wealth. I think Elon summed it gooder ,i paraphrase him here: "Wealth is just asset allocation." so basically move the cash around to find more wealth and increase that pile by carefully allocating it in the right places at the right time.

[Buyhigheatchips]

A company with lots of cash on hand should be able to increase their sp either by paying dividends or buying back shares no? I'd like to see some of these undervalued stocks. Everything I see seems to be trading beyond what fundamentals justify. I at least try to find ones where the fundamentals are expected to improve relatively rapidly.   

[Galaxym31]

Rapidly is right .

[Buyhigheatchips]

I really appreciate your insight. You add a lot of value to this board.