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ReconAfrica – Opening Up One Of The Largest Onshore Hydrocarbon Basins In The World

ReconAfrica

RECONAFRICA (TSX-V:RECOOTCQX:RECAFFRA:0XD)

120 billion barrels of oil in the Kavango Basin.

That’s the potential amount of oil sitting under the Kalahari Sands in Namibia and Botswana.

The Kavango Basin is one of the planet’s last remaining onshore new frontiers in oil exploration. Only one Canadian company is in full control of its destiny: Reconnaissance Energy Africa Ltd.

(TSX-V:RECOOTCQX:RECAFFRA:0XD) (“ReconAfrica”).

World petroleum source rock expert Daniel Jarvie, former Chief Geochemist for the $50bn EOG Resources (NYSE:EOG), is a key member of ReconAfrica’s (TSX-V:RECOOTCQX:RECAFFRA:0XD) team. Jarvie is convinced the company is on the path to discovering phenomenal riches.

Even at today’s prices of $40 a barrel, the Kavango Basin could generate the kind of opportunity that even the majors dream about!

It is an exceptional play. There is nothing out there today that is like it.

With oil prices expected to return to $60 a barrel by the end of 2021, the outlook is bullish and the timing is perfect to embark on such an ambitious venture.

For a business with only a C$100 million market cap, the fact that ReconAfrica (TSX-V:RECOOTCQX:RECAFFRA:0XD) is fully-funded through the upcoming crucial 1st phase of drilling in the Kavango Basin is an extremely compelling investment pitch.

And the more you learn about the story the better it gets.

ReconAfrica (TSX-V:RECOOTCQX:RECAFFRA:0XD) has been flying under the radar for the past 12 months since listing on the Toronto Venture Exchange. The company’s stock grew steadily from 20 Canadian Cents to just over C$1.

But what had been hidden is about to come out into the open.

“I HAVE NEVER SEEN A PLAY LIKE THIS IN MY CAREER, IT’S LIKE SOMETHING THE MAJORS WOULD HAVE.”

– SCOT EVANS: CEO, RECONAFRICA

Trading volume is increasing (over a million shares a day) and the market is clearly starting to wake up to what the company is on the cusp of.

Why?

Early investors can see this stock exploding in value in the next 12 months.


Download our exclusive report to discover the extraordinary size of the Kavango Basin opportunity


AN UNPRECEDENTED OPPORTUNITY

The Kavango Basin opportunity

RECONAFRICA (TSX-V:RECOOTCQX:RECAFFRA:0XD)

ReconAfrica (TSX-V:RECOOTCQX:RECAFFRA:0XD) has an almost unprecedented opportunity to open up a brand new, colossal petroleum basin in onshore Africa.

It controls the entirety of the deep Kavango Basin in Namibia and Botswana.

It’s an exceptional feat for a junior energy company to secure long-term license control over an entire deep sedimentary basin.

But this is exactly what ReconAfrica (TSX-V:RECOOTCQX:RECAFFRA:0XD) has achieved.

The potential is so great, the company’s C$23 million fundraise had to be upsized twice just to meet early institutional demand.

Now, with $21 million of cash and no debt, ReconAfrica (TSX-V:RECOOTCQX:RECAFFRA:0XD) has a Q4 2020 three-well, high-impact drilling campaign it is about to launch.

However, it’s the prospectivity of the company’s licenses that has caused the most excitement.

What’s really interesting about them is this.

In contrast to almost every other junior explorer in the world, ReconAfrica (TSX-V:RECOOTCQX:RECAFFRA:0XD) will not live or die by striking commercial oil on the first well.

This is no moon-shot one-hit wonder that fails if oil isn’t immediately found in commercial quantities.

ReconAfrica’s (TSX-V:RECOOTCQX:RECAFFRA:0XD) PRIMARY AIM is to prove that under its 8.75 million acres license area exists an active hydrocarbon system.

That’s it.

With so much land under its long-term control, if ReconAfrica (TSX-V:RECOOTCQX:RECAFFRA:0XD) can achieve this objective it will find itself in a strong position to bring in a major farm-in partner or partners.

Frankly, faced with a petroleum system up to 6,000ft thick and with supermajors already crawling all over the country, it would be a shock not to secure a farm-in if the initial drilling program is as successful as many renowned geo-scientists expect.

Work completed to date proves that the Kavango Basin is a Permian basin, a geologic formation responsible for a significant percentage of the world’s current oils and gas supply.

You’ve almost certainly already heard of the US Permian Basin, which stretches across west Texas and New Mexico. It has produced hydrocarbons consistently for over 100 years, supplying more than 28.9 billion barrels of oil and 75 trillion cu ft of natural gas as of January 2020. In addition other great Permian source rock success stories can be found in Russia, the North Sea, Australia’s Cooper Basin and others.


18 billion barrels of oil initially targeted – what might ReconAfrica’s achieve? FREE REPORT DOWNLOAD


THE POTENTIAL OF KAVANGO BASIN

What might ReconAfrica’s achieve? 

RECONAFRICA (TSX-V:RECOOTCQX:RECAFFRA:0XD)

Sproule Associates, a Tier 1 energy consultant, estimated in November 2018 that the Kavango Basin has a potential 12 billion barrels of oil, on the Namibian side of the basin. More recently, in June 2020, it concluded there are another estimated 6.1 billion barrels of oil on the Botswana side of the Basin.

This was just a first resource estimate. Dan Jarvie – a renowned source rock expert – has since estimated the Basin’s full potential is 10x at 120 billion barrels generated.

This makes the enormous Kavango Basin the only undrilled onshore basin of its size in the world today.

Industry insiders know this.

Investors are now starting to catch up.

If the drilling campaign begins to meet expectations, ReconAfrica (TSX-V:RECOOTCQX:RECAFFRA:0XD) could be sitting on a basin similar in size to the other Permian hydrocarbon supersystems.

A lucrative farm-in or farm-out agreement with one or more of the multinational majors already operating in the region, like Royal Dutch Shell (NYSE:RDS.ALSE:RDSAAEX:RSDA)ExxonMobil (NYSE:XOM) or Total (EPA:FPLSE:TTANYSE:TOT), would be the next logical step.

This is where the long duration of ReconAfrica’s (TSX-V:RECOOTCQX:RECAFFRA:0XD) licenses really comes into play.

The Namibian exploration runs until January 2024, with an option to extend until 2026.

The Botswanan exploration license is open until 2024 too, but with an option to extend to 2034.

If ReconAfrica (TSX-V:RECOOTCQX:RECAFFRA:0XD) strikes commercial oil – which remember, it doesn’t need to in this first exploration phase – then it will apply for 25-year production licenses in both Namibia and Botswana.

A BRAND-NEW OIL FRONTIER

Ideal operating environments to launch a new on shore oil play

RECONAFRICA (TSX-V:RECOOTCQX:RECAFFRA:0XD)

Namibia and Botswana are near the top of the 2020 World Bank List, which rates the best places on the continent for entrepreneurs. Namibia is sixth and Botswana ranked fourth best of Africa’s 54 countries.

This is perfect for ReconAfrica (TSX-V:RECOOTCQX:RECAFFRA:0XD).

Robust property and licensing rights in both countries are the bedrock on which their impressive GDP growth is built.

Not only are the governments stable, competitive and highly supportive of the oil industry, they charge super-low royalty fees to encourage investment…..and it’s working!

How low?

Up to FIVE TIMES cheaper than in oil-rich Texas, for example.

This means exclusive, multi-decade control of a transformational basin.

And the wider picture?

A main rail route runs directly near the resource area to the coast of Namibia, where we find a deep-water port in the city of Walvis Bay. From here, giants like ExxonMobil and Total plan to ship their Namibian oil and gas to the rest of the world.

This is a truly long-term play in the heart of an undiscovered, untapped and brand-new oil frontier.

With a fully funded, high-impact drill campaign about to start, a strong cash balance and those longstanding licenses, ReconAfrica (TSX-V:RECOOTCQX:RECAFFRA:0XD) is poised for remarkable growth.


Read our SPECIAL REPORT to learn why Namibia and Botswana are such attractive jurisdictions


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