RECONAFRICA (TSX-V:RECO, OTCQX:RECAF, FRA:0XD)
ReconAfrica has a dynamite chance to open up what could be one of the biggest oil discoveries in decades.
Here, on the border of Namibia and Botswana, there’s a Permian basin the same size as the Eagle Ford in Texas.
It’s called the Kavango Basin and has never been drilled.
Designated Play of the Year by oil and gas investment experts, the Kavango Basin represents a potential 120 billion barrel opportunity, as confirmed by world-leading geochemist Daniel Jarvie.
ReconAfrica (TSX-V:RECO, OTCQX:RECAF, FRA:0XD) has 8.75 million acres to explore.
“IT’S LIKE FINDING A NEW CONTINENT. IF YOU APPLY THOSE NUMBERS TO THE ENTIRE BASIN THEY WOULD BE OFF THE WALL. THEY WOULD BE LAUGHABLE BECAUSE THEY ARE SO HIGH. THEY COULD BE SITTING ON SOMETHING ABSOLUTELY HUGE.”
– DANIEL JARVIE: PRESIDENT, WORLDWIDE GEOCHEMISTRY LLC
The maiden fully funded three-well exploratory drill campaign is set to begin in December.
ExxonMobil, Shell, Tullow Oil and Total are already very active in offshore Namibia , but why haven’t they made the first move in the onshore Kavango Basin?
“WHEN IT COMES TO DISCOVERY, IT’S OFTEN UP TO THE INDEPENDENTS TO FIND THE PLAY,” JARVIE EXPLAINS, “LOOK AT THE DISCOVERY AND DEVELOPMENT OF UNCONVENTIONAL PLAYS – IT’S THE INDEPENDENTS WHO LED THE WAY…IN THESE UNEXPLORED OIL FRONTIERS, OPPORTUNITIES LIKE THIS HAVE JUST BEEN OVERLOOKED.”
– DANIEL JARVIE: PRESIDENT, WORLDWIDE GEOCHEMISTRY LLC
Download our exclusive report to discover how ReconAfrica could transform your stock portfolio
A SPECTACULAR OPPORTUNITY
ReconAfrica’s Back Story
The back story to how ReconAfrica (TSX-V:RECO, OTCQX:RECAF, FRA:0XD) landed such a spectacular, opportunity is fascinating.
It began in 2013.
Craig Steinke, ReconAfrica’s (TSX-V:RECO, OTCQX:RECAF, FRA:0XD) founder, was scouring the globe for the most attractive source rock with the biggest upside potential. He was the sole shareholder of the company’s private predecessor.
Referencing a global source rock study by IHS Markit, Steinke pinpointed some intriguing land that fit his 22-point above-ground and below-ground evaluation criteria.
This turned out to be Petroleum Exploration License 73 (PEL73): the Kavango Basin which runs beneath PEL 73 in northeast Namibia and the more recently licenced Basin continuation in northwest Botswana.
Steinke recognized at once that this could be a life-changing moment. The Namibian government already had a goldmine of aero-magnetic data on the Kavango Basin, which it had gathered from airborne survey flights.
Crucially, the survey data had never been assessed by a trained geophysicist and Steinke immediately saw the significant merit of having this assessment done. This was a HUGE milestone.
The company to benefit from this legendary survey data would become ReconAfrica (TSX-V:RECO, OTCQX:RECAF, FRA:0XD).
And who did Steinke bring in to assess the aero-mag data?
Acclaimed geophysicist Bill Cathey interpreted the entire aero-magnetic survey for PEL 73, as he had done for countless other prospecting licenses for many supermajors.
His assessment?
“NOWHERE IN THE WORLD IS THERE A SEDIMENTARY BASIN THIS DEEP [30,000FT] THAT DOES NOT PRODUCE COMMERCIAL HYDROCARBONS.”
– BILL CATHEY: PRESIDENT, EARTHFIELD TECHNOLOGIES
By January 2015 Steinke had secured a 90% interest in a 4-year exploration license for the 6.3 million acres on the Namibian side of the Kavango Basin.
The other 10%?
It belongs to NAMCOR, the state-owned Namibian Petroleum Corporation.
That means serious support from a stable, oil-friendly and democratic government that has a keen interest in responsibly commercializing the Kavango Basin.
The ownership stakes are even better in Botswana. Here, ReconAfrica (TSX-V:RECO, OTCQX:RECAF, FRA:0XD) holds a 100% working interest in all petroleum rights from surface to basement.
The nearest well drilled to the Kavango Basin – ST1 – further to the west, in the Owambo Basin.
Importantly, the Permian source rock in the Kavango Basin is significantly thicker, the data shows.
Already substantially de-risked, read our EXCLUSIVE REPORT DOWNLOAD for an in-depth analysis of ReconAfrica’s ambitious exploration plan
RECONAFRICA’S RIG
Rocketing Interest In Oil
Because of the rocketing interest in oil exploration offshore Namibia in the scramble for high-quality resources, competition is fierce for oilfield services in the region.
This usually creates an ever-increasing cost basis for explorers. It can also cause lengthy operational delays.
However, ReconAfrica (TSX-V:RECO, OTCQX:RECAF, FRA:0XD) is well ahead of the game. It bought its own rig, knowing this would give it the full operational flexibility it would need to open up the Kavango Basin.
Not only that, but this move will also cut overall drilling costs by 60%!
The Crown 750, a never-been-used 1000hp rig, is rated to a vertical drill depth of 12,000ft.
It is now in Houston being upgraded with extra equipment in preparation to spud the first exploration well in December.
And because it owns the rig, ReconAfrica (TSX-V:RECO, OTCQX:RECAF, FRA:0XD) will not be forced to rush for immediate results.
Instead, it can remain supremely focused on the quality of drill data it gathers – vital for successfully opening up any major basin. Of the extraordinary potential Jarvie says:
“GIVEN THE NATURE OF THE BASIN AND THE TREMENDOUS THICKNESS, THIS IS PRETTY MUCH A NO-BRAINER…IT WILL BE PRODUCTIVE AND I’M EXPECTING HIGH-QUALITY OIL.”
– DANIEL JARVIE: PRESIDENT, WORLDWIDE GEOCHEMISTRY LLC
All this is a substantial de-risk for the project as a whole. Overlay a set of highly attractive fiscal terms and it’s obvious why the market is starting to buy ReconAfrica (TSX-V:RECO, OTCQX:RECAF, FRA:0XD) shares in volume.
“NAMIBIA AND BOTSWANA’S PREFERENTIAL TAX/ROYALTY SYSTEMS PROVIDE AN ATTRACTIVE OPPORTUNITY TO HARVEST VALUE FOR SHAREHOLDERS, EVEN WITH A RELATIVELY SMALL COMMERCIAL PROJECT.”
– MARK HEIM CFA, ELEPHANT IN NAMIBIA RESEARCH REPORT, JULY 2020
Namibia requires a royalty of just 5%.
Botswana?
Negotiable, but starting even lower at between 3% and no more than 10%.
On a worldwide scale, this fiscal framework is one of the most attractive available and makes the potential upside staggering.
PRIMED FOR SUCCESS
A World-Class Team
With a world-class team of geologists, geophysicists, geochemists, petroleum engineers and other industry veterans working round the clock to realize the Kavango Basin’s potential, all signs point to success for ReconAfrica (TSX-V:RECO, OTCQX:RECAF, FRA:0XD).
Organic geochemist Daniel Jarvie and geophysicist Bill Cathey have worked for almost every super major oil and gas company on the planet. Cathey has taken part in several ReconAfrica (TSX-V:RECO, OTCQX:RECAF, FRA:0XD) capital raises – the first time he has early-stage invested in a client in his entire 30+ year career.
It’s clear that few but the best-connected insiders have realized precisely what ReconAfrica (TSX-V:RECO, OTCQX:RECAF, FRA:0XD) really has here.
This could be a retirement stock – if it pans out as the experts believe it could.
With such talent driving it forward, ReconAfrica (TSX-V:RECO, OTCQX:RECAF, FRA:0XD) boasts a singular focus combined with monumental upside and bonanza returns if and when it strikes an active petroleum system.
“FOR A LITTLE COMPANY LIKE RECONAFRICA TO POTENTIALLY UNLOCK THE KEY TO A 120BN BARREL OIL GENERATED OPPORTUNITY IS THE STUFF OF LEGENDS.”
– SCOT EVANS, CEO: RECONAFRICA
2020 just got very, very interesting.
Just what might the upside be for ReconAfrica in opening up the Kavango Basin? Read our special report to discover the answer!
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