Reconnaissance Energy (Africa) Ltd V.RECO

You don’t want to know how sausage is made

[Oregonduck]

Lund Enterprises was a dormant gold penny stock with Haywood VP holding a ton of shares. Haywood acted as the Sell-side analyst.

Renaissance Energy completed a reverse takeover of Lund which I characterized as the " invasion of the body snatcher". Renaissance subsequently merged it into Renaissance Africa as RECO.

Out of that, there was $104 million Goodwill asset created on the merger. Simply put, the insiders for both companies are mostly the same people and the Goodwill intangible was created out of thin air. That made the shares being acquired puffed up for more than they were worth by mllions from a stroke of a pen. 

The biggest questions are why no drill flow tests done, and will they be drilling elsewhere as the 2 wells drilled appeared to be non-commercial.

Buying time as no news - JV, drilling and uplisting - is bad news.

[Matteo1234]

Seismac says WINNER. Add 2 proven wells. One billion plus mkt cap. = No brainer. Stayhard