I'm thinking the lawsuits have them overly cautious about putting out news.
I'm looking forward to the JV announcement.
Absolutely RECAF needs a JV partner, ideally one that will provide their own
drilling rig and crew. The sooner this happens the better!
Some news - they raised money ($6.5 Million) and now approval to drill 12 well to unrestricted depth. They have to plan and execute
The ECC authorizes ReconAfrica to commence the drilling of an additional 12 exploration and appraisal wells, to unrestricted depths, in the Kavango Basin, in Namibia from July 4, 2023, until July 4, 2026.
The primary objective of the upcoming drilling program is to establish commercial accumulations of oil and or natural gas and natural gas liquids which were identified in the first three stratigraphic test wells.
Management's current focus in the 3rd & 4th quarter of 2023 is developing and prioritizing its prospect inventory in order to execute a multi-well drilling program targeting both primary plays; the Damara Fold Belt and the Karoo Rift Basin, with initial emphasis on the Damara Fold Belt as detailed in the Company's June 26, 2023, news release.
The full Netherland, Sewell report.
Very encouraging! Hoping this will lead to a JV announcement sooner rather than later.
Would love to see several JV partners come into this with each bringing in their own
drilling rig(s) and various experts. Given the super-majors that are involved offshore
Namibia, they may already feel comfortable with the government and would want to
get involved in onshore exploration and projects.
Unfortunately, that won't happen till they drill again, and it could take more drilling than the next well.
The good news is - the company gives updates as promised
The not so good news - all these updates do not mean much till some concrete results are announced.
We need some positive statements from the company showing that the area (very large) contains some decent amount of oil that can be extracted logically
good overall view of where things are and how RECON got there--Wanke and Granath. And what might be next
I would love to see them find it in Africa.
Company is doing OK in terms of work and providing updates.
The work they are doing is very comprehensive. Whether they find oil is not in their control but their efforts are well directed. Hope we see some results
“Once acquired and processed, the 2,200 sq km survey will be integrated with the Company's existing 2D seismic data, which greatly enhances ReconAfrica's capacity to extrapolate structural geometry in three dimensions”
The report looks good - they provide updates regularly - I like transparency
There seems to be delays in drilling new well 5-1
“The earlier phase of 2D seismic combined with stratigraphic test wells which penetrated the underlying Damara section (pre-Karoo aged stratigraphy), initially identified the fold belt below the Karoo Rift Basin and confirmed the trend and presence of these fold structures, carbonate reservoir rocks with up to 17% matrix porosity, fracture porosity, and significant oil shows (Netherland, Sewell & Associates Report). “
Link to PR posted on Recon website.
Shell makes ‘big’ oil discovery offshore Namibia — results imminent
Sources tell Upstream that results of Jonker-1 probe could be revealed within days
3 March 2023 16:24 GMT UPDATED 3 March 2023 16:56 GMT
By Iain Esau in London
Shell looks to have a third significant oil discovery on its hands in Namibia’s red-hot Orange basin play and could make an announcement within hours or days, according to informed sources.
Early last year, the supermajor hit oil with its Graff-1 probe in Block 2913A, just ahead of TotalEnergies striking hydrocarbons at its huge Venus prospect in adjacent block 2913B and before Shell went on to have success with its follow-up La Rona-1 well, close to Graff.
In late January, Upstream reported that early signs from Shell’s Jonker-1 exploration probe — also in Block 2913B — were promising, with Northern Ocean’s semi-submersible rig Deepsea Bollsta understood to have hit hydrocarbons in a secondary target en route to the main reservoir objective.
Need JV partner and announcement of oil discovery.
Nice move up today on yesterday's nice move up!
I hope there is a tangible reason behind it. My hope
is that we get an announcement of a JV partner soon.
(The sooner we have a JV partner the better...Even
better if they bring in their own drilling rig(s) and crews.)
Things are really heating up in our area
Total Fast Tracking Namibia...
Namibia Superfind Too Good Not to Fast-Track. The French energy company TotalEnergies (NYSE:TTE) will be spending half of its 2023 exploration budget on offshore Namibia after the 6-billion-barrel Venus discovery last year, the largest in 2022, propelled the frontier region to global limelight.
Flippers were driving it up of course. They got wind of the new presentation, which looks really good to me, and were playing that for a trade.
If they do not consider this particular update as material then they are right.
When BO or collaboration discussions start, no company announced that data room being open. It is closest indication that they are very close to a deal if it has to happen. For investors, this is good trigger to carry speculative accumulation
Slide 4 last line
- JV process underway; data room opened, multiple interested parties undertaking evaluation
Actually, I like that they don't know why it was going up.
That may indicate there is an acquirer of stock that RECAF
is not aware of. Would be excellent if this were to rebound at
the end of the day and end at a high. Today's move so far
is a "gap" open which is very positive if it holds.
Recon is looking for a JV partner to help them with drilling and production. They have a 20 year production lease with the promise of renewal.
Sure, anything is possible but suggesting a $10 billion market cap is
unrealistic. Compare RECAF to APA which has a solid operation in
Egypt ( very good oil production there,) plus Alpine High in the US,
then a massive offshore oil discovery. Throw in some North Sea oil
production and the total market cap is around $14 billion.
One reason I believe a BO is likely is that the governments who
control this will want to see tax revenues happen sooner rather
than later. The governments cannot be happy with all the delays.
At some point, should it become apparent that there is a massive
oil discover here, the government wll very quickly want a super-
major to develop it as it is the quickest road to tax revenues.
Time is not an issue - if oil is discovered the country has much incentive to extract it - so there always will be negotiations
The key is - if the potential for oil is large - this could easily go to $10 B market cap before BO - but that is pure speculation
They have 20 years to produce once they start to, and then an extention.
True, except that RECAF has an enemy called time. The acreage is
not forever. (I think the clock starts to run out once they have a declared
commercial discovery.) Given the massive acreage held the more drilling
rigs running the better. Ideally, RECAF will bring in several JV partners.
(Maybe each one will have a certain geographic area to cover.) Be careful
in suggesting what the absolute value may end up being. If the acreage
turns out to be very prospective I would look for a BO, but well before the
share price has a chance to hit $20. Thus, in my opinion that may place
a cap on the share price. Anyhow, right now this will be fun to watch play
Someone or something seems hell-bent on accumulating a position
and or driving up the share price. My hope is to get over $5.00 at some
point this year. Hope we get a JV partner announcement sooner rather
For me - the drilling results do not mean much at this point for SP
Reason - they have lease ownership of 8.5 million acres of land for drilling
If the JV partners sees value - we are going to see a deal in 3-4 months - this could push the market cap to $1 B and above which is $5 SP
Also they will not need to raise cash as JV will come with loads of money
A17, For me what is most frustrating is that everything at RECAF
moves so slow, and ultimately what is most meaningful will be drilling
results. What I want to see the company do is rapidly get to the point
where they will have JV partners actually bringing in their own drilling
rigs and crews to drill prospective oil targets! I can understand the
need for having the best data set possible in order to select the best
prospective target locations...but they must be drilled to now for certain
what is there! The sooner RECAF selects viable JV partners the better.
However, it will be actually drilling the wells that will count!
Thanks - this is very detailed and much better deck
Here is the possible reason for price moves
Slide 4 last line
? JV process underway; data room opened, multiple interested parties undertaking evaluation
Once data room is opened and evaluation started means, they are in advance stage of JV process - we can expect actual (if the data is attractive) bidding in 2-3 months
Some parties may wait for eFTG results
The JV deal could be announced in 3-4 months and deal closure could take much longer
RECAF broke the pattern today by holding a very nice gain and closing
at the high of the day. (All that on a down market day as well!) One could
surmise that there may be some good news coming down the pike. That
could be a JV partnership agreement or something else. I hope that a JV
partnership would actually end up being several JV partners who would
bring in their own drilling rig(s) and exploration team(s.) RECAF in the
past has complained that they are very small so everything takes more
time to accomplish. RECAF needs to bring in the big boys to get this
At this stage it is impossible to predict when meaningful news
will be released. Obviously, having a commercial oil discovery
would be the most important. My hope is that whatever info is
gleaned from seismic and other methods not only leads RECAF
into drilling at the best locations but also result in that info enticing
several JV partners to get active with drilling. My strategy for
playing this is to keep my current position and not sell until it
hits at least $5.00. Also, I will buy more if by some bizarre chance
the share price goes to the low $.80's. Good to see the recent
This from Dec’22 press release
“After recently making significant progress in scheduling and permitting of acquisition of this data, the Company is advised that it will be completed by late-January 2023. Our initial interpretation will follow shortly thereafter”
Also the well 5-1 drilling May start soon as per release
So maybe we will hear some news soon