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Hi, What’s your outlook on reconnaissance Energy Africa ltd?
thank you in advance!

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Asked on January 3, 2021 12:17 pm
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Hi Ali,

This is an oil & gas exploration and development company with operations in Nambia, Africa which is currently undergoing an O&G boom. However, RECO doesn't generate revenue and is subject to higher than average geopolitical risk. To add to the company's risk profile, UNESCO has recently raised concerns that its drilling sites could endanger two world heritage sites. It was also the subject of environmental concerns in this biological sensitive region.

These junior oil & gas companies just aren't ones we are interested in at the moment. The future is renewables and although oil isn't going away anytime soon, a company like Energy Africa carries much more risk than domestic O&G juniors. This is very much a high risk stock which is a ways away from commercialization and although it may have some potential, it is only for the high risk investor.

Mat

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Posted by Mathieu Litalien
Answered on January 3, 2021 5:18 pm