Bullboard - Stock Discussion Forum Reconnaissance Energy (Africa) Ltd V.RECO

Alternate Symbol(s): RECAF | V.RECO.WT | RCNWF

Reconnaissance Energy Africa Ltd. is a Canada-based oil and gas company. The Company is engaged in the exploration of the Damara Fold Belt and Kavango Rift Basin in the Kalahari Desert of northeastern Namibia and northwestern Botswana. The Company holds interest in a petroleum exploration license no. 0073 (PEL 73) in northeast Namibia and an interest in petroleum exploration rights in northwest... see more

Add To Watchlist

TSXV:RECO - Post Discussion

Reconnaissance Energy (Africa) Ltd > Valuation Metrics

View:

Post by Oregonduck on Jun 04, 2022 12:39pm

Valuation Metrics

The deal value is around $30 million - give or take - for the 5.0 percent interest. That imputes a valuation of $600 million v. $1 billion mkt valuation, or $3.0 per share.

Previously, I predicted that the stock will fall to $3 level to fill the runaway up gap.

There is only a 10 percent success ratio on the next two wells according to rhe CO's own estimation, the stock is vulnerable to collapse back to pennies if they come up dry again.

266