Reconnaissance Energy (Africa) Ltd V.RECO

Loose Lips Sink Ships

[Oregonduck]

Robert 'What's his name' the General Mgr of Reconnaissance Energy Namibia Pty Litd. said the Co has found flowing oil at the just completed Wildcat 8-2 well. Reco has said nothing to confirm or deny the news.

If it is true, he violated Securities Act in the US and in Canada under IIROC rules for tipping.

The stock subsequently spiked on that news.

If it is untrue, he violated misrepresentation for committing a fraudulent act.

Reco is vicariously liable for the actions of its insider employee.

SEC Rule 10b-5 prohibits corporate officers and directors or other insider employees from using confidential corporate information to reap a profit (or avoid a loss) by trading in the Company's stock. This rule also prohibits “tipping” of confidential corporate information to third parties.

[C1v1k6]

how much do you get paid to bash reco? Just curious...

[geomanx02]

Mr. Duck....Maybe that's why they ceased drilling the bottom 2439' of the hole?  Found oil and cased the hole?

[pacer001]

Agree Geoman I do think they found oil and are being coy about it.

[jimgeorge]

I repeat, if they found flowing oil that would constitute a material change and Recon would have to announce it.  The rules are very clear...

[Yo_Dog]

JG  I don't know the rules in the O&G sector, but materail change in the public markets is material change. I have held other oil stocks with tight hole status, but It's been so long, I don't remember what transpired, except the wait was painful even though it was material.  I have to wonder and maybe you can sheld some light on this query. It's been 3 weeks since

[jimgeorge]

Here's the deal.  If you have an event that you think may be a material change, but you don't want to announce it, you have to have a fulsome discussion with the Market Surveilance group at the exchange.  You have to fully describe the event, and give your reasons for not disclosing it publicly.  In my experience there are very few reasons that Market Surveilance will accept

[pacer001]

Ok this "market survelience group" thing is another red herring. First of all there are all sorts of "groups".  Just a quick dive into this is that they are "market" oriented - "market" not company oriented. They are not "police" organizations at an individual basis per se.  They have to do with watching that trading  is

[jimgeorge]

What are you even talking about?  I had many discussions with Market Surveilance during my career about exactly this issue.  This is what happens.  Quit babbling about stuff you know nothing about.