Two Ways To Win Big On The Oil Price Rebound: Oilprice.com, ReconAfrica, RECAF
by walt970 | September 29, 2020 8:31 am
Oilprice.com recently ran a story on oil[1] plays for the (hypothetical?) rebound in oil prices. https://oilprice.com[2]/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[3] (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[4] and Botswana[5].
“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[6] 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?
- oil: https://www.stockgumshoe.com/tag/oil/
- oilprice.com: https://www.stockgumshoe.com/tag/oilprice-com/
- Africa: https://www.stockgumshoe.com/tag/africa/
- Namibia: https://www.stockgumshoe.com/tag/namibia/
- Botswana: https://www.stockgumshoe.com/tag/botswana/
- Bloomberg: https://www.stockgumshoe.com/tag/bloomberg/
Source URL: https://www.stockgumshoe.com/2020/09/microblog-two-ways-to-win-big-on-the-oil-price-rebound-oilprice-com-reconafrica-recaf/
Sure has gotten hot
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:
Look, all you have to do is initiate a simple Google search with Recon Africa or RECAF in the search bar and you will see that this is NOT a promotional piece. There is good coverage and interviews with principals of the company everywhere. These people make up a 5-star team of the top oil people on the planet, some coming out of retirement and none of whom need the money, heading up a junior explorer that has bought rights to possibly the largest terrestrial oil play left on earth for peanuts. They are fully funded and state that they will not need to raise more money to move forward. Up to 160 billion bbl of oil in the extremely hospitable English speaking nations of Namibia and Botswana, terrific local and governmental support. They’ve bought their own brand new exploratory rig and are putting it to use right now. To date everything they have said they would do, they have done. They know everyone in the industry and are well positioned to bring in major partners if the holes are good, and imaging says they should be. I started following the stock at .70 and it’s at about $2.50 today, with the (highly speculative) potential of “many multiples” of that. And oh yes, since Namibia is also a treasure trove of wildlife and the area is extremely environmentally sensitive there is a good deal of high level opposition among guardians of the African treasures strictly opposed to any of this happening. So the possibility exists that not a single barrel of oil will ever be harvested. ReconAfrica is working closely with locals to gain and keep their trust. I hope you understand that there is a tremendous story here on many levels that remains to be covered.
Up 20% today, a great story worthy of a re-look
Sure surprised at the silence. It’s way up, 2 successful wells, getting positioned for JV and he noise on shorts seems exactly that. My largest position based on accelerating price this year, have to trim soon as out of balance. Really not sure what is missing, baffled by the silence as it has gone form $1 to $9 per share, and appears early in the process. Can someone enlighten me??