Too big to post all of it but just came out from Oilprice.com. I am signed up for their free updates
Dear Readers,
Just into the New Year with lucrative holiday wishes for you all … and there is no better way to start off 2021 than with a major movement on my favorite oil play of the decade: Recon Africa (RECO).
If you didn’t take part in the first private placement offer and haven’t yet jumped on this stock, I think there’s even more reason to now.
I thought this was the most exciting oil stock I’d ever seen the first time I brought it to your attention, but it’s gained traction even beyond my original expectations since then.
Reconnaissance Energy Africa (“Recon Africa”) (RECO-V, RECAF-OTCQX)
is a small company that has secured the oil and gas rights to an entire sedimentary basin in Namibia and Botswana--both very friendly to oil exploration, with very low royalty fees (5%) and prospects for discovering an estimated 120 billion barrels of oil (yes, 120 billion).
Now, three important things have just happened …
First, RECO’s just about to start drilling in what could end up being the next big onshore oil discovery in the world. So, this is the last train out of the station and the final destination could send this stock to heights that few junior stocks ever get to go.
Second, the biggest and most trusted name in natural resource assessments--Wood Mackenzie--has just released a report comparing RECO’s Kavango basin to the Midland Basin in Texas, and Wood Mackenzie believes the Midland has a development value of $540 billion.
Third, Haywood has just nearly doubled its short-term share price target from $2.50 to $4.00 …
You can read the updated Haywood report here.
And both Wood MacKenzie and Haywood have a great deal of insight to share on this opportunity, which I will get into in more detail below.
In the meantime, I’m excited because opportunities like this almost never come around in the oil patch, and in the current atmosphere, the only opportunities worth jumping on are the huge ones with big risk/reward potential. The potential doesn’t get any bigger than this.
Here’s what Wood Mackenzie has to say in its latest report:
There’s no one more respected in the resource space than Wood Mackenzie. So, when they came out with this report, my excitement level increased exponentially.
Wood Mackenzie detailed three world-class similar age basins--the Midland Basin in Texas, the Southern North Sea Basin in the Netherlands and the UK, and the Doba Basin in Chad (Africa)--and demonstrated how RECO’s Kavango is analogous to all three, but particularly to the giant Midland Basin.
Why is this so exciting?
Because the Midland Basin, in the Permian basin of Texas, has been producing oil since the 1930s, and it is the undisputed king of American production. It won’t even hit peak production until 2035 at 3.8 million barrels of oil equivalent per day. And it’s estimated overall development value is $540 billion (in oil only). We are all familiar with Permian Basin as an unconventional resource, but that’s only over the last decade. This basin, like all other super basins, produced from low-cost conventional reservoirs for most of its history, since the 1930’s!