The Globe and Mail reports in its Friday, Nov. 6, edition that Haywood Securities analyst Christopher Jones began coverage of Reconnaissance Energy Africa with a "buy" rating and $2.50 share target.
The Globe's David Leeder writes in the Eye On Equities column that Mr. Jones says in a note: "[Reconnaissance Energy] is set and funded to derisk a potentially material resource play onshore Namibia and Botswana with 1,348 mmbbls/58.1 Tcf best estimate prospective recoverable resource (gross). We recommend accumulating a position ahead of drilling/evaluation news flow in H1/21 aimed at proving up the presence of a working hydrocarbon system, which if confirmed, should provide abundant opportunities for further exploration and appraisal drilling. On a successful discovery, attractive fiscal terms should help to facilitate development of the basin, thereby increasing the chance commercialization and shareholder value."
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