Reconnaissance Africa(RECO)

Too big to post all of it but just came out from Oilprice.com. I am signed up for their free updates


Dear Readers,

Just into the New Year with lucrative holiday wishes for you all … and there is no better way to start off 2021 than with a major movement on my favorite oil play of the decade: Recon Africa (RECO).

If you didn’t take part in the first private placement offer and haven’t yet jumped on this stock, I think there’s even more reason to now.

I thought this was the most exciting oil stock I’d ever seen the first time I brought it to your attention, but it’s gained traction even beyond my original expectations since then.

Reconnaissance Energy Africa (“Recon Africa”) (RECO-V, RECAF-OTCQX)
is a small company that has secured the oil and gas rights to an entire sedimentary basin in Namibia and Botswana--both very friendly to oil exploration, with very low royalty fees (5%) and prospects for discovering an estimated 120 billion barrels of oil (yes, 120 billion).

Now, three important things have just happened …

First, RECO’s just about to start drilling in what could end up being the next big onshore oil discovery in the world. So, this is the last train out of the station and the final destination could send this stock to heights that few junior stocks ever get to go.

Second, the biggest and most trusted name in natural resource assessments--Wood Mackenzie--has just released a report comparing RECO’s Kavango basin to the Midland Basin in Texas, and Wood Mackenzie believes the Midland has a development value of $540 billion.

Third, Haywood has just nearly doubled its short-term share price target from $2.50 to $4.00 …

You can read the updated Haywood report here.

And both Wood MacKenzie and Haywood have a great deal of insight to share on this opportunity, which I will get into in more detail below.

In the meantime, I’m excited because opportunities like this almost never come around in the oil patch, and in the current atmosphere, the only opportunities worth jumping on are the huge ones with big risk/reward potential. The potential doesn’t get any bigger than this.

Here’s what Wood Mackenzie has to say in its latest report:

There’s no one more respected in the resource space than Wood Mackenzie. So, when they came out with this report, my excitement level increased exponentially.

Wood Mackenzie detailed three world-class similar age basins--the Midland Basin in Texas, the Southern North Sea Basin in the Netherlands and the UK, and the Doba Basin in Chad (Africa)--and demonstrated how RECO’s Kavango is analogous to all three, but particularly to the giant Midland Basin.

Why is this so exciting?

Because the Midland Basin, in the Permian basin of Texas, has been producing oil since the 1930s, and it is the undisputed king of American production. It won’t even hit peak production until 2035 at 3.8 million barrels of oil equivalent per day. And it’s estimated overall development value is $540 billion (in oil only). We are all familiar with Permian Basin as an unconventional resource, but that’s only over the last decade. This basin, like all other super basins, produced from low-cost conventional reservoirs for most of its history, since the 1930’s!

I think this is a very good political and environmental play by RECO

Jan. 5, 2021 /CNW/ - Reconnaissance Energy Africa, Ltd. (the "Company" or "ReconAfrica") (TSXV: RECO) (OTCQX: RECAF) (Frankfurt: 0XD) is pleased to provide the following updates:

ReconAfrica Logo (CNW Group/Reconnaissance Energy Africa Ltd.)

Exploration License 001/2020

ReconAfrica recognizes and accepts the importance of pertinent cultural and historical sites. As such the Tsodilo Hills, located in north-west Botswana near the Namibian Border, an UNESCO World Heritage Site, has always been recognized by our Company, as a site with this specific, highly important, designation.

To this regard, ReconAfrica and the Government of Botswana began a process in October of 2020 to address this important issue. As a direct result of our collaborative process, the Republic of Botswana has now issued an updated License to ReconAfrica excluding ReconAfrica's entire Core and Buffer areas of the Tsodilo Hills. The License area is now 8990 km2 (2,221,000 acres) versus the previous 9,921 km2 (2,450,000 acres). ReconAfrica is pleased with this preferred structure as our Company has never had plans for operations in the Tsodilo Hills area. ReconAfrica follows strict environment, social and governance protocols.

ReconAfrica is committed to establishing operational transparency and working with all local and national stakeholders. In all aspects of its operations, ReconAfrica is committed to minimal disturbances in line with international best standards and will implement environmental and social best practices in all of its project areas.

Wood Mackenzie Report on Kavango Basin

Wood Mackenzie, one of the world's leading natural resources research and consulting firms has released a report on analogous subsurface basins to the Kavango Basin, which is held by ReconAfrica under licence contracts. The study detailed three world-class basins of similar age and/or tectonic origin; the Midland-Permian Basin (Texas), the Southern North Sea Basin, and the Doba Basin in Chad (Africa). The report demonstrates how the Kavango Basin is analogous to all three, but particularly to the sizable Midland Basin. This basin is of the same age (Permian) as the Kavango and has produced from low-cost conventional reservoirs since the 1930's, the same targets ReconAfrica is pursuing.

The Report is now available for download from the ReconAfrica website.

TonyK, the environmental groups are always against everything. I am not too concerned.
As Lynnsa posted. you have to consider the good that most exploration companies do for local communities that really need.

I don't expect any delays. I doubt enviro will get any support from locals and they are drilling and donating 3 more water wells

mozrep wrote: RonS - Should we be also looking at Craig Steinke's company Renaissance Oil seeing as they just bought into RECO's area in Botswana?

I think so, I have owned some for about 2 years. I bought for their Mexican assets which they have given up on. RECO should be the main horse in the play

Recon Energy Update 2 (TSX-V: RECO & OTCQX: RECAF) – Company Drills and Donates Water Well to Local Community - Plan to Drill 3 Additional Community Water Wells Starting in Jan 2021

December 22, 2020


We wanted to pass on some more really great news about Recon Energy wherein they have drilled a water well and donated it to the local community for their use. Prior to this water well being completed women in the community had to walk upwards of 10 km each way to access water. This is a game changer for the community and they are truly ecstatic about this development as you can see from watching the two short video’s attached to this email. We also recently learned that Recon Africa plans to drill 3 additional community water wells for communities in the area starting in January 2021.

Recon shares are up 15% today presently trading at US$1.75. Based on yesterday’s drilling update which was very positive with the rig now on location and being set at the 6-2 pad, we expect 2021 to be extremely active for Recon Africa and their shareholders. To get a good sense of what we can expect to see over the next few months be sure to take a look at the updated Haywood Research report that was attached to yesterday’s Recon update as well as yesterday’s press release, link here:
reconafrica.com/wp-content/uploads/RecoA...date-Dec-21-2020.pdf

Before


After

Ron S, I’m hearing rumours that there are many environmental groups against this drilling going forward. Just wondering what you have heard, and as investors in this project, is there any concerns for a delay in spudding the first drill target? There was a bit of a serious decline in the share price last week, but it quickly recovered. Not sure the reason for it going down, and why it came back quickly to the recent levels. Should we be concerned of this environmental movement? I like the project, the team involved and have a good position in the stock, and have been accumulating warrants, and would have thought the environmental concerns would’ve been dealt with, especially with the Namibian (?) government believed to have 10% stake? Your thoughts

RonS - Should we be also looking at Craig Steinke's company Renaissance Oil seeing as they just bought into RECO's area in Botswana?

Reconnaissance Energy Africa’s (OTC: RECAF & TSX-V: RECO) management team was invited to present to the Houston Chapter of API (American Petroleum Institute at the venerated Petroleum Club in Houston (on the 35th Floor of the Total (Petrochemical) Plaza Tower).

vimeo.com/480128335

As you will see from viewing this new, very comprehensive deep dive on the project, the Kavango Basin has all the ear markings of a major new multi-billion barrel field discovery - and if you are even a tiny bit bullish on the future of hydrocarbon based energy you should take a very close look at Recon Africa as the leverage and upside for this stock quite literally is off the chart! During this roughly 1 hour and fifteen minute roundtable presentation to the Houston API members (and was also live streamed to the global API membership) Recon Energy’s management and technical team make a very solid case to the high prospectivity of their play

At recent prices, I think you are better off buying the stock.

Stock at $1 and warrants at $0.44, so the stock has to go to $1.44 to break even on the warrants, although they would increase in price with the time factor

If the stock went to $1.80, you would be up 80%. The warrants might go $1.00 then so you would be up over 100%. so would do a little better.

I think the warrants will offer better leverage when the stock is higher, as the premium will decline as they become further in the money

RonS - Any suggestions if we should buy the warrants?