Post by
Oregonduck on Jul 03, 2022 11:59am
Valuation Metrics
comparing Reco to Africa Oil (AOI):
Apple against Apple, each with mkt cap of roughly $1 billion (Can). Both are headquartered in Vancouver and exploring in frontier Africa.
AOI has discovered first oil in Kenya and brought in JV partnersTullow and Total. Expects to deliver 120,000 boe/day when it comes on stream. It has taken 10 years and will have to wait for a pipeline to be built.
AOI has interests in the recent Namibia offshore 4 billion barrels discovery and in Guyana and South Africa from its controlling interests in Eco Atlantic, Impact Oil and Africa Energy. Currently, the Co is generating 22,000 boed from its deep-water Nigerian oil concession operated by Chevron. It made $200 million in 2021 and is starting to pay a dividend to shareholders.
On the other hand, Reco hasn't found a single drop of oil while pumping up its share price on misrepresentation that they have 120 billion Original Oil in Place. In the meantime, insiders were dumping massive amount of cheap shares and exercising boatloads of warrants and options. Jay Park and Dr Granath have jumped ship.
I bought AOI at below $1, a decade ago, and told people to dump when it got over $10 on the Kenya discovery. It is now selling around $2. I was practically ran off this Bullboard by angry posters. Funny, how people get delusional when it comes to Vancouver penny stocks.