Meet The Man Behind The World’s Most Exciting Oil Play


This is the story about an oil play that so far has lived as much as its promise…

Namibia is the setting…

And a little-known Canadian explorer is the protagonist.

It was the speculative funding of 2020…

But now we expect it’s being de-risked following two successful drill results

And its inventory value has been flying because of this. 

The first interview we had with the founder Craig Steinke was very properly acquired by our readers who have been very impressed with what Reconnaissance Energy Africa (TSXV:RECO, OTC:RECAF) had completed in such a short while. But since then it has been speculated that sure hedge funds have been spreading disinformation due to large naked short positions and we needed to get Craig on the telephone once more to set just a few issues proper.

In the interview we focus on:

– What traders can anticipate from the approaching outcomes
– Why Recon might be sitting on a big discipline with simply their first 2 wells
– Why log and core information outcomes may end in substantial investor and business curiosity
– Why their ESG program is creating such a constructive affect inside Namibia
– How the Kavango area would profit from a industrial oil discovery
– What they anticipate the second seismic to point out   
-When the core information evaluation will likely be accomplished
-What to anticipate throughout the summer time months
– What traders ought to preserve their eyes on as new releases come out
– Exactly how well-known geochemist Dan Jarvie is feeling concerning the outcomes so far

James Stafford: We solely spoke a few weeks ago however loads has occurred since then. Tell me about what you’ve gotten discovered within the first a part of properly 2. What does this really imply for the basin and the prospect of this turning right into a producing discipline?

Craig Steinke: Results from the primary a part of the second properly further confirmed an active conventional petroleum system on this basin. The oil and fuel exhibits are similar to what we noticed within the first properly 16 km to the south. This suggests connectivity between the 2 wells and a doubtlessly massive discipline. Although the upcoming seismic survey will higher outline this potential connection.

JS: You point out in each releases about properly 1 and properly 2 that you’ve discovered a working petroleum system. What does this really imply?

CS: A working typical petroleum system consists of a mature supply rock to prepare dinner the natural materials to create liquid hydrocarbons, a migration pathway for the hydrocarbons emigrate to a traditional reservoir rock, a entice and a seal. These are the important thing parts ReconAfrica and its companion, NAMCOR, the state oil company of Namibia, are confirming with a view to obtain commerciality within the Kavango.

JS: How lengthy do you assume it is going to take you to drill the second part of properly 2 and what are you hoping to seek out there following the success of the primary part?

CS: We anticipate to achieve whole depth of the deeper part of the second properly by the primary week of July. Our expectation is we’ll set up additional proof of sunshine oil and pure fuel as we’ve seen within the extra shallow part. This will present additional proof to verify ReconAfrica’s expectation that the Kavango Sedimentary basin is charged with hydrocarbons.

JS: I’ve spoken with numerous folks and it appears that there’s some huge cash sitting on the sidelines ready for the log and core information from properly 1. Do you assume that that is the laborious information persons are ready for earlier than actually getting behind the corporate? When do you anticipate we could have the info from properly 1?

CS: Given ReconAfrica holds the rights to your entire sedimentary basin, theres no query constructive outcomes with this information goes to precipitate a lot business and investor consideration. Specifically, core evaluation is used to outline the vital parts of a reservoir rock corresponding to porosity, permeability, fluid saturation, and grain density. All of those measurements are important to raised perceive the potential productiveness of the basin. ReconAfrica and NAMCOR are working with among the business’s finest third-party evaluators, Corelabs, GeoMark and Netherland Sewell primarily based in Houston and Dallas Texas. Therefore, you might be assured the outcomes we’ve got are going to be credible. The Company expects these outcomes will likely be launched in July, 2021.

JS: So in each wells you’ve gotten discovered oil and fuel exhibits? Can this be produced? If sure, with what you already know to this point do you assume it might be economical to take action?

CS: It’s vital to recollect these preliminary wells weren’t designed to provide. In maintaining with ReconAfrica’s dedication to the Namibian authorities, these wells have been designed to show an energetic petroleum system on this virgin basin. Having stated this, the primary properly was solely briefly capped, offering the Company and NAMCOR the chance to return to the properly and take a look at it for manufacturing at a later date.

JS: So analyzing the info you’ve gotten Schlumberger, Geomark Research & Corelabs (Houston, Texas), and Netherland Sewell and Associates (Dallas, Texas). Could you inform us a little bit about these corporations and why they’re the very best folks to be analyzing your information and samples?

CS: Schlumberger for instance employs 82,000 folks and operates in 120 international locations. Core Laboratories has been in enterprise for 85 years and is a number one supplier of reservoir evaluation and manufacturing enhancement companies. All of those service suppliers are used extensively by the Majors and IOCs. They’re the very best within the enterprise.

JS: Can you inform us about your ESG program and what you’re hoping to realize for the atmosphere and the folks of Namibia?

CS: June 3, 2021, together with its newest drilling outcomes, ReconAfrica introduced a $10 million dedication to ESG. This is an preliminary dedication and one we anticipate will develop primarily based on efficiently creating a sustainable power supply. The Company is working with native and nationwide governments to refine this system however typically, it is going to comprise efforts to realize carbon neutrality, assist for larger ranges of schooling for the kids within the Kavango Region, higher entry to recent water and medical companies, extra refined irrigation techniques to realize larger productiveness and measures to guard and regenerate wildlife all through the area.
Specifically, what is essential to most of the adults inside the Kavango area is larger ranges of schooling for his or her kids. They know that is the reply to transcending generational poverty that has stricken the area.

JS: It appears that you’re working from the very best ranges of presidency in Namibia all the way in which all the way down to the native tribes. How are your efforts being acquired by these teams?

CS: Our efforts are being acquired extraordinarily properly, notably in mild of the actual fact the drilling program has established a working petroleum system within the Kavango. Achieving commerciality will remodel the economics of the native area in addition to tremendously help the nationwide authorities in reaching their Vision 2030 of industrializing their nation.

JS: This may seem to be a somewhat fundamental query – however I’m hoping you’ll be able to bear with me. Your first properly confirmed over 660 ft of oil and pure fuel indicators and on the primary a part of the second properly you reported 440 ft of sunshine oil and fuel. Now, these wells have been 16km aside. So is that this mainly an underground river of oil that’s flowing in direction of some geological constructions referred to as traps which are mainly large underground storage containers for the oil? And judging by the dimensions of the “river” oil might be saved in enormous portions?

CS: We want to not make an excessive amount of out of this at present, however there are positively comparable rock and hydrocarbon traits shared between the 2 wells. If the 2D seismic confirms connectivity between these two wells then doubtlessly it might be a somewhat massive discipline, however let’s wait to see the outcomes of the seismic.

JS: How excited are you with what you’ve gotten seen from Well 2 to this point?

CS: I’m very excited. We both simply bought fortunate on these first two wells or these wells are indicative of what your entire Kavango basin holds.

JS: In your ESG plan I see that you’ve already drilled four water wells for villages. Could you please tell us what this has finished for these folks? How did they get their water earlier than they have been drilled?

CS: Providing the agricultural folks of the Kavango area with significantly better entry to water is central to our ESG program. Many of us take rapid entry to freshwater without any consideration as we’ve at all times had it. If you don’t have it, it’s somewhat an enormous deal as there may be nothing extra important to life than freshwater. Fortunately, there’s a prolific freshwater aquifer 80m to 160m beneath the floor all through probably the most a part of the Kavango area. The unhappy half is the native residents shouldn’t have the monetary wherewithal to drill water wells to entry it. As a consequence, largely ladies, are tasked with hauling roughly 45 kilos of water on their head for as much as 10 km every day. Just attempt to think about doing this day by day.

ReconAfrica has responded to this downside by already drilling 4 neighborhood water wells together with allowing a further 16 water wells. As quickly because the permits are prepared we’ll begin drilling once more. It’s obscure till you really meet the residents of Kavango how profoundly this modifications their lives each day.

JS: Our readers have been very fascinated by how Dan Jarvie was feeling final time. With the current progress, how is Dan now?

CS: Dan is the primary to confess we’re nonetheless within the early phases however he’s positively smiling.

JS: Thanks in your time, Craig. It feels like issues are coming alongside very properly. We are all trying ahead to the core outcomes and discovering out what’s within the deeper a part of properly 2.

For these of you seeking to discover out extra about Reconnaissance Energy Africa you’ll be able to go to their web site at: http://www.reconafrica.com/
Canadian Ticker: TSXV:RECO
US Ticker: OTC:RECAF

Other oil corporations seeking to capitalize on the rise in crude costs:

Total (NYSE:TOT) barely squeezes into the highest four oil and fuel corporations on this planet, as properly. And it’s no stranger to the African oil sport, both. Total betting massive on the area’s potential. The firm has been within the area for over 90 years, and it’s displaying no signal of decreasing its footprint anytime quickly.

Recently, Total stated that it could speed up its dividend development “in the coming years” because it seems to return more money to shareholders. The group will improve its “dividend by 5 to 6 percent per year instead of the 3 percent per year as previously announced,” Total stated.

It’s additionally one of the vital aware corporations within the enterprise. Total checks each field within the ESG guidelines. It is selling variety and security, making large modifications in its operations to make sure that its enterprise is environmentally sound, and has even dedicated to going carbon impartial by 2050 or sooner. It’s no shock that shareholders are loving its forward-thinking method.

BP (NYSE:BP) is one other European power large slowly pivoting in direction of greener power alternate options. BP, which has been criticized up to now as being gradual and late to the environmental trigger, may now leapfrog its friends. We are nonetheless a good distance from Beyond Petroleum. But chief government Bernard Looney believes that we’re solely 30 years from a web zero BP. He has promised that in September the corporate will lay out a extra detailed plan that exhibits the trail to that vacation spot. But he has proven already that there’s extra to his dedication to net-zero than there was to Beyond Petroleum 20 years in the past.

“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, stated, commenting on the outlook to 2040.

Baker Hughes (NYSE:BKR) just lately introduced what it calls the biggest deployment of its distant operations digital expertise, and this deployment concerned all of Aramco’s drilling operations. This is how the corporate describes what the undertaking entails: “a single solution that covers data aggregation from the edge; real-time, unified data streaming and visualization; data management; software development services; rig-site digital engineers; and monitoring personnel.”

In different phrases, what we could name distant drilling in a dialog really includes a complete push to unify and centralize operations within the upstream business. Baker Hughes has been doing it for 20 years already, and its friends are doing it, too. According to Jegatheeswaran, that is the way forward for the upstream. Because it’s useful for everybody concerned.

Schlumberger (NYSE:SLB) is remodeling itself to outlive and thrive in an oilfield a fraction of the dimensions it was only some years in the past. The emphasis is shifting from throwing massive chunks of iron and a schoolyard full folks at a undertaking to minimizing capital depth of operations by means of the digital PSO transformation we’ve got mentioned right here. The digitalization of the worldwide oilfield will show to be very sticky and start to ship subscription-type returns to each corporations.

SLB is forward of the remainder of the oilfield pack with their New Energy Genvia enterprise, which goals to provide carbon-free blue hydrogen by means of a hydrogen-production expertise enterprise in partnership with the French Alternative Energies and Atomic Energy Commission (CEA), and with Vinci Construction. This new enterprise will speed up the event and first industrial deployment of the CEA high-temperature reversible strong oxide electrolyzer (SOE) expertise.

Marathon Petroleum (NYSE:MPC) is likely one of the main E&P corporations and the proprietor of the nation’s largest refining system, with roughly 2.9 million barrels per day of crude oil processing capability throughout 13 refineries. Earlier within the yr, 4 of Texas’ largest oil refineries noticed widespread injury from the chilly snap and will take weeks to restore, based on Bloomberg. The outages may cut back demand for crude, however minimize the availability of refined merchandise.

The 4 refineries embody ExxonMobil’s Baytown and Beaumont crops, Marathon Petroleum’s Galveston Bay refinery, and Total’s Port Arthur facility. The affect undoubtedly impacted Marathon’s backside line, however the firm is again on monitor, and regardless of underperforming in comparison with its friends, it’s nonetheless well-positioned for a rebound.

Though Canadian oil has had a very tough go at it this yr, Canadian Natural Resources (NYSE:CNQ; TSX:CNQ), stored its dividend intact after swinging to a loss for the primary half of the yr, whereas Canada’s producers are scaling again manufacturing by round 1 million bpd amid low oil costs and demand. Though Canadian Natural Resources stored its dividend, it withdrew its manufacturing steering for 2020, nevertheless. It additionally stated it could curtail some manufacturing at high-cost typical initiatives in North America and oil sands operations and perform deliberate turnaround actions at oil sands initiatives within the second half of 2020.

While the Canadian power large has seen its inventory value droop this yr, it may present a doubtlessly alternative for traders as oil costs rebound. It is already up over 170% from its March lows, and it may nonetheless have some extra room to run.

Even old-school fossil gasoline producers are getting in on this race. While most of the oil majors have given up on oil sands manufacturing – corporations like Suncor (NYSE:SU, TSX:TU) who give attention to technological developments within the space have an amazing long-term outlook. And that upside is additional amplified by the truth that it’s at present trying notably under-valued in comparison with its friends. But that’s only one a part of its enterprise, nevertheless. Suncor can also be a world chief in renewable power improvements. Recently, the corporate invested $300 million in a wind farm situated in Alberta.

Cenovus Energy (TSX:CVE) is most recognized for its oil enterprise, however it’s also actively investing in renewable power. More importantly, nevertheless, is that it has set really formidable sustainability objectives for itself, aiming to chop emissions by an enormous 30% in simply 10 years.

This is likely one of the most actively traded shares on the TSX. The potential is actually right here for this oil firm, so for traders who’re bullish on the return of the oil markets, it is a excellent choose within the Canadian market.

Tourmaline Oil Corp (TSX:TOU) is one other Canadian useful resource producer specializing in exploration, manufacturing, improvement and acquisition inside Western Canadian Sedimentary Basin. The firm is in possession of an intensive undeveloped land place with long-term development alternatives and a big multi-year drilling stock. Tourmaline’s robust management make the corporate a promising choose for traders seeking to benefit from the super Canadian oil alternatives that are due for a powerful rebound as oil costs inch larger.

Westshore Terminals (TSX:WTE)  is a coal export terminal situated at Roberts Bank Superport in Delta British Columbia. It is Canada’s largest coal export facility, surpassing the mixed coal shipments of all different terminals in Canada. Short sellers are eying at like Westshore Terminals primarily based on a easy truth: they’re within the coal enterprise. And the coal enterprise resides on borrowed time.

Though the fossil gasoline business isn’t fairly down for the depend simply but, coal is seeing a significant decline that’s solely going to worsen.

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

Forward-Looking Statements. Statements contained on this doc that aren’t historic info are forward-looking statements that contain varied dangers and uncertainty affecting the enterprise of Recon. All estimates and statements with respect to Recon’s operations, its plans and projections, measurement of potential oil reserves, comparisons to different oil producing fields, oil costs, recoverable oil, manufacturing targets, manufacturing and different working prices and probability of oil recoverability are forward-looking statements underneath relevant securities legal guidelines and essentially contain dangers and uncertainties together with, with out limitation: dangers related to oil and fuel exploration, together with drilling and different exploration actions, timing of reviews, improvement, exploitation and manufacturing, geological dangers, advertising and marketing and transportation, availability of ample funding, volatility of commodity costs, imprecision of reserve and useful resource estimates, environmental dangers, competitors from different producers, authorities regulation, dates of graduation of manufacturing and modifications within the regulatory and taxation atmosphere. Actual outcomes could range materially from the data offered on this doc, and there’s no illustration that the precise outcomes realized sooner or later would be the identical in entire or partially as these introduced herein. Other elements that would trigger precise outcomes to vary from these contained within the forward-looking statements are additionally set forth in filings that Recon and its technical analysts have made. We undertake no obligation, besides as in any other case required by legislation, to replace these forward-looking statements besides as required by legislation.

Exploration for hydrocarbons is a extremely speculative enterprise essentially involving substantial threat. Recon’s future success will depend upon its capability to develop its present properties and on its capability to find assets which are able to industrial manufacturing. However, there is no such thing as a assurance that Recon’s future exploration and improvement efforts will outcome within the discovery or improvement of economic accumulations of oil and pure fuel. In addition, even when hydrocarbons are found, the prices of extracting and delivering the hydrocarbons to market and variations available in the market value could render uneconomic any found deposit. Geological situations are variable and unpredictable. Even if manufacturing is commenced from a properly, the amount of hydrocarbons produced inevitably will decline over time, and manufacturing could also be adversely affected or could should be terminated altogether if Recon encounters unexpected geological situations. Adverse weather conditions at such properties might also hinder Recon’s capability to hold on exploration or manufacturing actions repeatedly all through any given yr.

DISCLAIMERS

ADVERTISEMENT. This communication is just not a advice to purchase or promote securities. Oilprice.com, Advanced Media Solutions Ltd, and their homeowners, managers, staff, and assigns (collectively, the “Company”) haven’t been paid by Recon for this text, however has been paid for a promotional marketing campaign up to now and should once more be paid sooner or later. As the Company has been paid and should once more be paid in future by Recon for promotional exercise, there’s a main battle with our capability to be unbiased, extra particularly:

This communication is for leisure functions solely. Never make investments purely primarily based on our communication. We haven’t been compensated for this explicit article however could sooner or later be compensated to conduct investor consciousness promoting and advertising and marketing for TSXV:RECO. Therefore, this communication must be seen as a industrial commercial solely. We haven’t investigated the background of the corporate. Frequently corporations profiled in our alerts expertise a big improve in quantity and share value throughout the course of investor consciousness advertising and marketing, which regularly finish as quickly because the investor consciousness advertising and marketing ceases. The data in our communications and on our web site has not been independently verified and isn’t assured to be appropriate.

SHARE OWNERSHIP. The proprietor of Oilprice.com owns shares of this featured firm and due to this fact has a further incentive to see the featured firm’s inventory carry out properly. The proprietor of Oilprice.com won’t notify the market when it decides to purchase extra or promote shares of this issuer available in the market. The proprietor of Oilprice.com will likely be shopping for and promoting shares of this issuer for its personal revenue. This is why we stress that you just conduct intensive due diligence in addition to search the recommendation of your monetary advisor or a registered broker-dealer earlier than investing in any securities. 

NOT AN INVESTMENT ADVISOR. The Company is just not registered or licensed by any governing physique in any jurisdiction to offer investing recommendation or present funding advice.

ALWAYS DO YOUR OWN RESEARCH and seek the advice of with a licensed funding skilled earlier than investing. This communication shouldn’t be used as a foundation for making any funding.

RISK OF INVESTING. Investing is inherently dangerous. Don’t commerce with cash you’ll be able to’t afford to lose. This is neither a solicitation nor a proposal to Buy/Sell securities. No illustration is being made that any inventory acquisition will or is more likely to obtain earnings. 

Read this article on OilPrice.com



Source link