Reconnaissance Energy Africa Ltd. (RECAF) closed Thursday up 58% after announcing preliminary analysis of data from their first of three wells in the Kavango Basin.
Interest was so heavy trading the dually listed company was halted temporarily on the TSX. Investors looked favorably on the news that stated; “The well sample log of the 6-2 provides over 200 meters (over 660 feet) of oil and natural gas indicators/shows over three discrete intervals in a stacked sequence of reservoir and source rock. Extraction of oil from these samples and subsequent fingerprinting for key characteristics of the liquids, supports an active petroleum system with multiple source intervals.”
Trading over 6 million shares Thursday and gaining investors $1.61 per share, RECAF could see some understandable profit taking this morning. However, there may be plenty of eager buyers ready to purchase these shares eagerly awaiting news from RECAF’s next well. With drilling, coring and logging operations now complete on the 6-2 location, the Company owned rig is being mobilized to the 6-1 location, 16 kms (10 miles) north of 6-2 drill site. This second well is designed to evaluate the petroleum systems discovered in the first well (6-2) in an area of maximum thickness.
About Reconnaissance Energy Africa Ltd. (RECAF)
ReconAfrica is a junior, Canadian oil and gas company engaged in the opening of the newly discovered deep Kavango Sedimentary Basin, in the Kalahari Desert of northeastern Namibia and northwestern Botswana, where the Company holds petroleum licenses comprising approximately 8.5 million contiguous acres. In all aspects of its operations, ReconAfrica is committed to minimal disturbances in line with international best standards and will implement environmental and social best practices in all of its project areas.