The Reconnaissance Energy Africa Ltd (OTCMKTS:RECAF) stock has been under pressure in recent days and the situation was no different this morning. This morning the stock is trading 1.5% in the red, but it is also necessary for investors to keep in mind that it had declined by as much as 18% during the opening session.
This morning the company is in the news after it decided to respond to a short seller’s report. Reconnaissance Energy Africa was responding to a short seller’s report that had been published back on June 24, 2021.
In that report, the short seller asserted that there was actually no petroleum in the Kavango Basin. However, Reconnaissance Energy Africa has called it false and went on to state that highly experienced geoscientists have verified the data published by the company which confirms the existence of a petroleum system.
The company also stated that the short seller in question does not have any experience or expertise in the field of geology. Moreover, the fact that the short seller actually has a short position in the Reconnaissance Energy Africa stock at this point in time is a sign of financial bias, according to the company.
Allied Energy (OTCMKTS:AGYP) In a Breakout
Another oil stock to keep an eye on is Allied Energy (OTCMKTS:AGYP) as stock had a major breakout Friday as we know on high volume. AGYP stock has been gaining solid momentum since the beginning of the year with a jump of about 500%. The stock had been consolidating after the big rally and broke above 35 cents to trigger a technical breakout. Recently, the company released recent rework activities as well as highlights to a work schedule that the Company believes will bring multiple wells online.
 Stock Recovers After Gap Down Opening){kind=link}