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Jan. 12, 2021, 8:30 a.m. EST

The World's Next Giant Oil Discovery Could Be Here

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- Daniel Jarvie is globally recognized as a leading analytical and interpretive organic geochemist of Barnett fame, and “Hart Energy ’s Most Influential People for the Petroleum Industry in the Next Decade.”

- Nick Steinberger, a world-class drilling and completion expert, then innovative engineer behind the giant Barnett gas play

- Bill Cathey is geologist to the supermajors, including Chevron, ExxonMobil, ConocoPhillips …

This is the best of the best--all of them confident in the chance of discovering the largest oil play in the last 20 to 30 years.

And they ’re also the numbers that helped Jarvie arrive at that estimate he stresses is highly conservative: a potential 120 billion barrels generated.

In short…

Using the most advanced survey technology known to the industry and decades of experience as a world-class geochemist, Jarvie estimates 120 billion barrels…

Investors will find out soon as Reconnaissance Energy Africa ’s /zigman2/quotes/204476071/delayed CA:RECO +3.34% /zigman2/quotes/207437442/delayed RECAF +4.62% 3-test drill results come in.

$98 MILLION COMPANY HOLDING ALL RIGHTS TO POTENTIALLY THE NEXT PERMIAN BASIN

Reconnaissance Energy Africa could be the best oil play for 2021.

Now that the drilling permits have been awarded… and a 25-year lease is locked in…

Three drills are now being moved in to place. 400km of 2D seismic is being permitted and shot.

The first 12,000-foot drill is already operating... and the first 6-2 well has already been spudded.

Results should come in by quarter’s end.

Few analysts cover this little-known stock...

But Haywood Capital Markets predicts a quick 100% upside…

They ’ve just increased their price target on this stock from $2.50 to $4.00 amid all the drilling excitement.

After that, expect two more drills to provide information on additional areas of the basin that Jarvie ’s research, the areo-mag survey and Haliburton litho-tect survey say is underground.

If that happens, this could be front page news …

Time will tell, but one thing is certain… smart investors will want to track this story over the coming days.

Other companies looking to win big on the rebound in oil:

British Petroleum /zigman2/quotes/207305210/composite BP -1.33% is a UK-based energy giant with a massive influence in the industry. BP has been criticized in the past for being slow or late to the environmental cause, but it could now leapfrog its peers. Though the world is still a long way from Beyond Petroleum, it is doing its best to make the leap. In fact, chief executive Bernard Looney believes that we are only 30 years from a net-zero BP. He has promised that in September the company will lay out a more detailed plan that shows the path to that destination. But he has shown already that there is more to his commitment to net-zero than there was to Beyond Petroleum 20 years ago. “Renewables and natural gas together account for the great majority of the growth in primary energy. In our evolving transition scenario, 85% of new energy is lower carbon,” Spencer Dale, BP group chief economist, said, commenting on the outlook to 2040.

Like the rest of the heavily oil-focused supermajors, BP felt the full weight of the oil price collapse in 2020, and is still struggling to find its feet in the COVID-stricken marketplace. Despite this, however, bullish news is mounting for the company thanks to its diversification efforts and its key bets on natural gas. BP’s share price is already up 20% since the start of the year, and it will likely climb even higher as energy markets level out.

Enbridge /zigman2/quotes/205825582/composite ENB -0.62% /zigman2/quotes/208510050/delayed CA:ENB -0.88% is in a unique position as oil and gas stages its 2021 comeback. As one of the more potentially undervalued companies in the sector, it could be set to win big this year. But that’s only if it can overcome some of the challenges in its path. Most specifically, its Line 3 project which has faced scrutiny from environmentalists.

The $2.6-billion project plans to replace Enbridge's existing 282 miles of 34-inch pipeline with 337 miles of 36-inch pipe. The new Line 3 would have the capacity to move 370,000 barrels of oil per day, alleviating the takeaway capacity constraints that Canadian oil producers have been struggling with for years now. Line 3 is one of two pipeline projects in the works that are—in their unfinished state—keeping Canada's oil industry from reaching its potential.

While this challenge may prove difficult for Enbridge to overcome, the health of the Canadian oil industry is improving, and with it, the outlook for Canadian producers such as Enbridge. The company has already started the year off strong, and if it can continue its momentum, it will likely be able to see a sustained rally in its share price over the course of the year.

CNOOC Limited /zigman2/quotes/204523316/delayed CA:CNU 0.00% is one of China’s oil majors. It’s the country’s most significant producer of offshore crude oil and natural gas, and may well be one of the most controversial oil stocks for investors on the market. A label that has nothing to do with its operations, however.

Recently, U.S. regulators announced their intention to de-list Chinese companies from the New York Stock Exchange, going back on their announcement just a few days later. The sustained negative press surrounding Chinese companies, however, has put CNOOC in an uncomfortable position for investors. While many analysts see the company as significantly undervalued, it is still struggling to gain traction in U.S. markets.

It's only natural to wonder why CNOOC was targeted and not CNPC or Sinopec. Lin Boqiang, dean of the China Energy Policy Research Institute at Xiamen University in southern ChinaSo, suspects CNOOC's drilling activity in the South China Sea area is responsible for putting it at loggerheads with U.S. authorities.

It's not yet clear how the growing antipathy between the two nations will affect the U.S. natural gas sector, given that CNOOC is China's largest importer of LNG. But as the Biden Administration prepares to take power, Chinese companies, including CNOOC, are likely to breathe freely once again, and it could be a boon for Chinese stocks.

Franco-Nevada Corporation /zigman2/quotes/205406065/delayed CA:FNV +0.92% specializes in securing precious-metal streams, but the company also works in the oil and gas industry. With key assets in some of North America’s most desirable oil and gas plays, including Texas, Oklahoma and Alberta, it is clear that the company has amazing potential in the coming years.

Cenovus Energy /zigman2/quotes/207955267/delayed CA:CVE -2.66% is most known for its oil business, but it is also actively investing in renewable energy. More importantly, however, is that it has set truly ambitious sustainability goals for itself, aiming to cut emissions by a massive 30% in just 10 years.

This is one of the most actively traded stocks on the TSX. The potential is certainly here for this oil company, so for investors who are bullish on the return of the oil markets, this is a perfect pick in the Canadian market.

Inter Pipeline Ltd /zigman2/quotes/200885644/delayed CA:IPL -0.11% is another pipeline company that holds plenty of upside for the coming year, IPL is particularly interesting for its exposure to the oil sands sector which is sure to see a boost in production as more and more companies focus on increasing output in the new high oil price environment.

The crisis in Venezuela has already seen heavy oil imports to North America drop, and as demand for the product increases and prices for oil continue to rise, companies in the space are sure to see growth.

By. Freddie Lambert

**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**

Forward-Looking Statements. Statements contained in this document that are not historical facts are forward-looking statements that involve various risks and uncertainty affecting the business of Recon. All estimates and statements with respect to Recon’s operations, its plans and projections, size of potential oil reserves, comparisons to other oil producing fields, oil prices, recoverable oil, production targets, production and other operating costs and likelihood of oil recoverability are forward-looking statements under applicable securities laws and necessarily involve risks and uncertainties including, without limitation: risks associated with oil and gas exploration, timing of reports, development, exploitation and production, geological risks, marketing and transportation, availability of adequate funding, volatility of commodity prices, imprecision of reserve and resource estimates, environmental risks, competition from other producers, government regulation, dates of commencement of production and changes in the regulatory and taxation environment. Actual results may vary materially from the information provided in this document, and there is no representation that the actual results realized in the future will be the same in whole or in part as those presented herein. Other factors that could cause actual results to differ from those contained in the forward-looking statements are also set forth in filings that Recon and its technical analysts have made, We undertake no obligation, except as otherwise required by law, to update these forward-looking statements except as required by law.

Exploration for hydrocarbons is a speculative venture necessarily involving substantial risk. Recon's future success will depend on its ability to develop its current properties and on its ability to discover resources that are capable of commercial production. However, there is no assurance that Recon's future exploration and development efforts will result in the discovery or development of commercial accumulations of oil and natural gas. In addition, even if hydrocarbons are discovered, the costs of extracting and delivering the hydrocarbons to market and variations in the market price may render uneconomic any discovered deposit. Geological conditions are variable and unpredictable. Even if production is commenced from a well, the quantity of hydrocarbons produced inevitably will decline over time, and production may be adversely affected or may have to be terminated altogether if Recon encounters unforeseen geological conditions. Adverse climatic conditions at such properties may also hinder Recon's ability to carry on exploration or production activities continuously throughout any given year.

DISCLAIMERS

ADVERTISEMENT. This communication is not a recommendation to buy or sell securities. Oilprice.com, Advanced Media Solutions Ltd, and their owners, managers, employees, and assigns (collectively “the Company”) have been paid by Recon seventy thousand U.S. dollars to write and disseminate this article. As the Company has been paid for this article, there is a major conflict with our ability to be unbiased, more specifically:

This communication is for entertainment purposes only. Never invest purely based on our communication. We have not been compensated but may in the future be compensated to conduct investor awareness advertising and marketing for TSXV:RECO. Therefore, this communication should be viewed as a commercial advertisement only. We have not investigated the background of the company. Frequently companies profiled in our alerts experience a large increase in volume and share price during the course of investor awareness marketing, which often end as soon as the investor awareness marketing ceases. The information in our communications and on our website has not been independently verified and is not guaranteed to be correct.

SHARE OWNERSHIP. The owner of Oilprice.com owns shares of this featured company and therefore has an additional incentive to see the featured company’s stock perform well. The owner of Oilprice.com will not notify the market when it decides to buy more or sell shares of this issuer in the market. The owner of Oilprice.com will be buying and selling shares of this issuer for its own profit. This is why we stress that you conduct extensive due diligence as well as seek the advice of your financial advisor or a registered broker-dealer before investing in any securities.

NOT AN INVESTMENT ADVISOR. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.

COMTEX_377562482/2559/2021-01-12T08:30:08

Is there a problem with this press release? Contact the source provider Comtex at editorial@comtex.com. You can also contact MarketWatch Customer Service via our Customer Center.

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