Reconnaissance Energy (TSXV:RECO) Stocks Trending: Should You Buy?

2 min read | May 04, 2021 12:15 PM EDT | By Team Kalkine Media

Reconnaissance Energy (TSXV:RECO) Stocks Trending: Should You Buy? — Image source: Lukasz Z,Shutterstock

Why Is The RECO Stock Trending?

Also known as Recon Africa, the company has 13,000 square miles of leased land in Namibia and Botswana for oil exploration. A recent news report claimed that its leased land could have 12 billion barrels of oil or more.

According to Brent Oil Futures, crude oil was trading at US$ 68.85 (real-time) per barrel, and this could mean that the company's total reserves would be worth US$ 826 billion.

RECO stock is making gains due to optimism about its oil find, with the latest discovery being one of the biggest crude oil discoveries. On April 15, Reconnaissance Africa had issued a statement in which it revealed that 6-2 well, first of a three-well drilling programme, indicates presence of an active petroleum system in Namibia's Kavango Basin.

Source: Pixabay

The Canadian Association of Petroleum Producers (CAPP) estimated that capital investment in the oil and gas industry could increase by 14 per cent in 2021, which could benefit oil producers.

Reconnaissance Energy Africa Ltd (TSXV:RECO)

The oil producer's market cap is C$ 1.4 billion and it has a price-to-book (P/B) ratio of 45.8. The stock grew by 182 per cent in the last month and by 15 per cent over the past week.

The stock’s year-to-date (YTD) growth stands at about 313 per cent.

1-year chart of stock performance of xx (Source: EODHD/Others/Thomson Reuters)

Its total assets increased to C$ 30.5 million in 2020, while its cash at the end of year stood at C$ 6.8 million.

The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.

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