By Adriano Marchese
The actions of Reconnaissance Energy Africa Ltd. rose late Monday morning after the company denied claims that no oil exists at its exploration site in Namibia.
As of 11:43 a.m. EST, stocks were up 3% to C $ 11.32 (US $ 9.20), after hitting a high of C $ 11.94 earlier in the session.
On June 24, Viceroy Research released a report suggesting that ReconAfrica had “an almost zero chance of finding a valuable asset at its exploration site, and an even lower chance of benefiting from any discovery.”
The Canadian energy company, which focuses on oil and gas exploration and development in Namibia and Botswana, reiterated data from recent discoveries from its 6-1 well in the Kavango Basin which show it has encountered 343 meters of oil and gas indicators so far away, “further confirming an active oil system.”
The company also said its 6-2 well provided more than 200 meters of light oil and natural gas indicators according to an April 15 report.
“Stratigraphic test wells 6-2 and 6-1 results distorted by short seller [Viceroy Research], suggesting that there is “no oil” when in fact the results of the two wells were much more successful than expected and strongly prove the presence of a functioning oil system, “the company said.
ReconAfrica’s exploration license for the Botswana part of the Kavango Basin has three years left in the current exploration period, he said, adding that it can extend it to 2034 through license renewals.
Write to Adriano Marchese at [email protected]