re: Could this be the next big play? (RECAF)

Last thing before I watch football the rest of the day....


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OIL & GAS / AFRICA / E&P

ReconAfrica sheds light on geology amid partnering plans

Reconnaissance Energy Africa is disclosing more information on its efforts, even while short sellers maintain criticism of its plans.



Reconnaissance Energy Africa is disclosing more information on its efforts, even while short sellers maintain criticism of its plans.

ReconAfrica CEO Scot Evans was hosted at a Goldman Sachs event this week, suggesting the company was in talks with potential partners. Someone leaked a recording of the talk.

ReconAfrica is “quite actively” looking at ways to graduate to a more senior exchange, he said. He declined to give specifics about which exchange it might be considering.

Evans confirmed ReconAfrica was also considering monetisation plans for oil from potential production. Initially, the plan would likely involve trucking crude around 100 km to a rail terminal. It would then be carried by rail to the deepwater port at Walvis Bay.

The CEO also said he was “really excited” about the prospect for gas-to-power.

Seismic acquisition is under way in Namibia. When this is complete, at the end of the year, the company will “start to look at the process of partnering. We’re building a team at ReconAfrica that can go from exploration to development planning to production. It’s a very large area … we’ve identified five sub-basins.”

Two companies have contacted ReconAfrica to express interest in the opportunity so far, he said.