written by reader Two Ways To Win Big On The Oil Price Rebound: Oilprice.com, ReconAfrica, RECAF

By walt949, September 29, 2020

Oilprice.com recently ran a story on oil plays for the (hypothetical?) rebound in oil prices. https://oilprice.com/Energy/Energy-General/Two-Ways-To-Win-Big-On-The-Oil-Price-Rebound.html
I like the site and do follow it not just for oil pricing but for lots of other stories dealing with energy problems. ANYWAY, in the story in question under the #2 heading “The Ultimate Discovery Play: Recon Energy Africa (TSX.V: RECO, OTCMKTS:RECAF)” a Canadian oil junior Reconnaince Energy / ReconAfrica https://reconafrica.com/ is briefly profiled along with some tantalizing details of an African oil discovery in the Kavango Basin in Namibia and Botswana.
“The Kavango Basin isn’t just one of the last likely onshore oil discovery patches in the world. It’s not just a basin that’s bigger geographically than Eagle Ford and could be the best contender for a repeat of the American shale boom… This small $50M market cap company has managed to do what is normally impossible for a company of this size: It has secured an entire sedimentary basin with an estimated 18.2 billion barrels of oil in place… It’s the junior play with big play characteristics… Under several long-term petroleum licenses, ReconAfrica has now acquired all the rights over the entire Kavango basin In Northeastern Namibia and Northwestern Botswana. That’s over 8.75 million acres as deep as the Permian and as wide as the Eagle Ford…”
RECON.V / RECAF trades on the Canadian and American exchanges for around $.75 USD. According to a chart accompanying the article, attributed to Dolmen Broker, Bloomberg and Reuters, an investor today would be able to buy into the Kavango Basin at < $10 USD an acre, this with a potential developed value of $20,000 USD an acre. I am not going to regurgitate the entire story right here. Go and read it yourselves, then let's start to sort this one out. Penny stock, with all the usual baggage that carries. Seemingly very good people associated with the project. Listed along with other respectable juniors on the Canadian exchanges... Problem is there is little information other than Oilprice and ReconAfrica's website and virtually no independent analysis. It is getting some attention on InvestorsHub, for what that's worth. So this could be really good or a total bust, but it is at least very interesting and there are many many questions at this point. Thoughts?

This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.



This site uses Akismet to reduce spam. Learn how your comment data is processed.

Inline Feedbacks
View all comments
January 13, 2021 12:11 am

Sure has gotten hot

👍 -5
Travis Johnson, Stock Gumshoe
January 13, 2021 9:21 am

Careful, that’s a very promotional piece and seems like it might be an effort to impress the company with OilPrice’s ability to drive the stock price — we’ve seen many paid postings from OilPrice in the past, and my impression is that they often don’t look much different than their “regular” articles. From the disclaimers:

“ADVERTISEMENT. This communication is not a recommendation to buy or sell securities. Oilprice.com, Advanced Media Solutions Ltd, and their owners, managers, employees, and assigns (collectively “the Company”) may in the future be paid by Recon to disseminate future communications if this communication proves effective. In this case the Company has not been paid for this article. But the potential for future compensation is a major conflict with our ability to be unbiased, more specifically:

This communication is for entertainment purposes only. Never invest purely based on our communication. We have not been compensated but may in the future be compensated to conduct investor awareness advertising and marketing for TSXV:RECO. Therefore, this communication should be viewed as a commercial advertisement only. We have not investigated the background of the company. Frequently companies profiled in our alerts experience a large increase in volume and share price during the course of investor awareness marketing, which often end as soon as the investor awareness marketing ceases. The information in our communications and on our website has not been independently verified and is not guaranteed to be correct.

SHARE OWNERSHIP. The owner of Oilprice.com owns shares of this featured company and therefore has an additional incentive to see the featured company’s stock perform well. The owner of Oilprice.com will not notify the market when it decides to buy more or sell shares of this issuer in the market. The owner of Oilprice.com will be buying and selling shares of this issuer for its own profit. This is why we stress that you conduct extensive due diligence as well as seek the advice of your financial advisor or a registered broker-dealer before investing in any securities.”

Add a Topic
👍 17222
January 16, 2021 1:12 am
Reply to  Walt

Up 20% today, a great story worthy of a re-look

👍 -5

We use cookies on this site to enhance your user experience. By clicking any link on this page you are giving your consent for us to set cookies.

More Info