Company Reports , Features

Unlocking One Of The Last Undeveloped Onshore Oil Basins In The World

21 Jan 2021 | by: Jason Eckerman

RECONAFRICA (TSX-V:RECO | OTCQX:RECAF | FRA:0XD)

The Last Great Onshore Oil Discovery?

The biggest story of 2021 is being completely overlooked.

Thanks to the discovery of government data in the place majors never thought to look, we could soon be talking about the highest impact onshore oil play in the world.

And it’s owned entirely by a junior oil exploration company with a market cap of only $436 million.

Plays like these are almost unheard of at this point in the game, as most of the onshore plays are on their last gasps after being discovered decades ago.

That’s why many of the majors have taken to Africa as the final frontier for oil.

And with production costs just a fraction of what they are in other parts of the world, it’s led to enormous oil booms throughout the continent.

In recent years it’s yielded incredible returns for those lucky enough to strike it rich.

Africa Oil, for example, jumped a massive 379% after their discovery in Kenya.

When it comes to the next up-and-comer, Namibia, majors like Exxon and Shell have been mostly focused on offshore plays though, completely missing the play of the century.

But Reconnaissance Energy Africa Ltd. could be onto the greatest discovery we’ve seen in years.

That’s because the Kavango Basin in Namibia and Botswana covers an incredible 8.5 million acres…

That’s nearly the size of the entire country of Switzerland.

And this junior holds the exclusive rights to this completely untapped basin.

ReconAfrica has already jumped an incredible 714% in just the last 9 months.

But with imminent results of their current drill program, investors are keeping a close eye on their progress.

And it all started when they discovered the Namibian government had aeromagnetic survey data that had not yet been interpreted.

After seeing the incredible potential that the Kavango Basin held, they scooped up exclusive rights to the land before the majors could spot this massive new play.

Wood McKenzie, one of the top business consultancies in oil and gas, is comparing the Kavango to three other major basins around the world.

But they say the closest comparison is to the world-renowned Midland Basin in Texas, valued at an incredible $540 billion.

That could mean incredible news for the small company with the market cap currently sitting around $436 million.

With such great untapped potential, they’ve been able to stack their team with world-class experts like Bill Cathey ahead of a highly anticipated drill program.

Cathey, the renowned new basin expert many of the majors call on, said the data he’s looked at on the Kavango Basin was among the best he’s seen.

And with it measuring at depths of up to 30,000 feet, that would make the Kavango Basin as deep as the Permian Basin in Texas, which is estimated to have produced 46.3 billion barrels of oil.

AFTER SEEING THE DATA, HE STATED, “NOWHERE IN THE WORLD IS THERE A SEDIMENTARY BASIN THIS DEEP THAT DOES NOT PRODUCE COMMERCIAL HYDROCARBONS.“

With this kind of confidence coming from a recognized geophysicist of his stature, ReconAfrica is moving quickly to get the project underway.


DOWNLOAD OUR SPECIAL REPORT ON RECONAFRICA’S INCREDIBLE OPPORTUNITY AND HOW EARLY INVESTORS COULD PROFIT.


Breaking News Approaching?

RECONAFRICA (TSX-V:RECO | OTCQX:RECAF | FRA:0XD)

The amount of potential oil hidden beneath the surface in the Kavango Basin is simply unprecedented.

To get an accurate assessment on just how much they could be sitting on, they’ve added Dan Jarvie to their exploration team.

Jarvie has been called the best geochemist and source rock expert in the world, and having experts of this caliber onboard already speaks volumes about the potential here.

But by his calculations, he’s said the Kavango Basin has likely generated up to 120 billion barrels of oil, which he calls a conservative estimate.

But the most shocking part is that this was based on only 12% of ReconAfrica‘s licence area.

With an additional 88% of the property not included in that already massive estimate, the amount of oil building under the surface could be staggering.

JARVIE STATED, “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.”

The results of their early data and estimates by world-renowned experts show that this small company could be sitting on the largest untapped onshore oil play in the world.

And their technical team is so sure of what they see lying ahead of them, all members have put “skin in the game” and become shareholders themselves.

Given the potential, analysts are estimating that if they see positive results in their current drill program, they could see a massive spike in their net asset values per share.

Haywood Securities previously set their short-term price target at C$4 per share, but given the great potential they’re seeing, they raised that all the way up to C$7 per share.

It’s no wonder they’re moving so quickly, delivering their oil rig to Namibia late last year in preparation for drilling to start on January 10.

And unlike many other oil plays expecting to deliver results over the next year or two, we could hear major news of the drill program much sooner than that.

They have three drill locations planned in the fully-funded drill program, so there’s sure to be a steady flow of news breaking throughout the coming weeks and months.

Most excitingly, the economics could be incredible.

With only a 5% royalty for any oil they retrieve, that puts rates amongst the lowest in the world, giving this the potential to be an extremely lucrative discovery if results are positive in the weeks to come.

If they recover even 10% of the estimated 120 billion barrels, this could spell major profits as Brent crude prices have jumped back to over $50 per barrel.

The potential at play here is unheard of at a time when most of the world’s oil basins were already on their last gasps decades ago.

With an untapped basin millions of acres in size being controlled by a company with a market cap of just $436 million, this could be the last major onshore oil play.

And with majors like Shell and Exxon active and expanding in the region, a discovery at the Kavango Basin could make ReconAfrica a prime target for partnering or even a potential major acquisition.

But with news set to break, now is the most exciting time for the most well-kept secret in the oil industry.


DOWNLOAD OUR NEW REPORT TO DISCOVER WHY THIS COULD BE THE MOST EXCITING PHASE FOR INVESTORS IN RECONAFRICA’S OIL CAMPAIGN.


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