There’s a breaking energy story that could potentially be a repeat of Texas’ multi billion dollar Midland Basin…
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A basin that has been producing since the 1930s and won’t reach peak production until 2035 at a phenomenal 3.8 million boe/d …
The most trusted name in natural resource assessments—Wood Mackenzie–says this new discovery is analogous not just to the giant Midland, with a development value of $540 million, but to two other world-class basins.
In fact, it could become the biggest stock story of 2021… And the oil and gas rights to the ENTIRE Basin is owned by one small under the radar oil company that is quickly making waves amongst investors called Reconnaissance Energy Africa (TSX: RECO.V, OTCMKTS:RECAF)
One of the key men behind what could end up being the onshore exploration play of the decade, former Navy Submarine Force Yeoman Dan Jarvie, once searched the depths of the Pacific for submarines…
But today he is one of the most respected petroleum geochemists in the world…
“Given the nature of this basin and the tremendous thickness, this is pretty much a no-brainer… It will be productive and I’m expecting high quality oil”
Dan Jarvie, Worldwide Geochemistry, LLC
And what he is uncovering could change the entire African energy sector.
This might soon become the largest oil play in the last 20-30 years…
A 6,000-foot-thick Permian basin that could prove up 120 billion barrels of high-quality oil and gas in place
Early investors could be rewarded, too.
This is a lottery ticket find … with the concomitant risk that could see early stock investors lose their money or make 100X… or more.
A MAJOR NEW PERMIAN DISCOVERY IN 2021?
During the Permian era there was only one continent…
And the earth’s vast ocean was teeming with marine plants and animals.
This organic matter fell to the bottom of the sea… and over time turned in to high-quality thick oil.
The world’s most famous Permian formations are currently in the US.
In fact, a little over a year ago, Texas’ Permian basin had become the top producer in the world, outdoing even the best the Saudis had to offer.
The Permian basin is a 250-mile-wide, 300-mile-long sedimentary basin housing the Midland Basin, the Delaware Basin and the Central Basin Platform across West Texas and Southeast New Mexico.
It currently boasts the world’s thickest deposits of sedimentary rocks formed during the Permian geological period.
It’s a geological wonder: Over nearly 300 million years, layer upon layer of rock, sand, silt, and water run-off added to the mix, creating a pressure that created one of the most lucrative bonanzas of natural resources anyone has ever seen.
We’re talking a lucrative 28.9 billion barrels of oil and 75 trillion cubic feet of gas, with no sign of letting up. As of the time of writing, the Permian basin is producing over 4 million barrels per day. And while today the Permian Basin is synonymous with unconventional oil and gas, the majority of the production (and value) to date has come from the conventional oil and gas plays, good old fashion vertical wells which don’t need to be frac’ed, don’t need a lot of water and produce for 20 years.
THE GEOCHEMIST GENIUS WHO UNCOVERED IT
Dan Jarvie, one of the most respected petroleum geochemists in the world, uncovered what could be one of the largest oil basins in the world, with over 100 billion barrels of oil–and that’s what he deems to be a conservative estimate. The oil just needs to be discovered and proven out.
Daniel Jarvie is globally recognized as a leading analytical and interpretive organic geochemist and “Hart Energy’s Most Influential People for the Petroleum Industry in the Next Decade.”
He was a key force behind the giant Barnett gas play and former chief geochemist for EOG Resources.
He’s jumped on this basin because he sees a “very strong, independent junior explorer… sitting on a sedimentary basin that rivals South Texas in a massively underexplored region”.
Earlier this month, Jarvie came out with his own estimates showing the potential for this basin not only almost the size of Switzerland, but to be aligned with the Permian in Texas.
The end result of Jarvie’s research?
A new – Permian type– basin with an estimated 66-120 BILLION barrels of oil to be generated….
And, the craziest fact of all?
His survey only accounts for 12% of the land.
There is still 88% more that hasn’t been quantified
Even better, while finalizing their drilling permits, they used two other non-invasive scientific investigations to support Jarvie’s conclusions…
First, a high density aero-mag survey…
And, second, the identification of a new Rift system that helped create the basin, by noted PHD structural geologist and ReconAfrica Board member Dr Jim Granath
The results were just as positive…
ADDITIONAL SURVEYS FIND 30,000 FT OF SEDIMENTARY ROCK BASIN FILL
"Not only was the data on the basin some of the best he had ever seen, but it also showed up to a 30,000-foot sedimentary basin."
Bill Cathey, Geological interpreter to the supergiants
The high-density aero-mag survey in this case revealed the depth of this basin and detailed its floor definition.
This high-tech survey showed up to 30,000 feet of sedimentary rock basin and showed a thick Permian petroleum system.
- Jay Park, RECO COB and director, is a veteran energy lawyer with tons of Africa experience and was designated Queen’s Counsel in Canada in 2011. He’s advised oil companies and governments in 50 countries, and he has a following of the best of the best.
- Scot Evans CEO, Geologist, oil expert, is an energy industry leader with a combined 35 years of experience with Exxon, Landmark Graphics and Halliburton.
- Daniel Jarvie is globally recognized as a leading analytical and interpretive organic geochemist of Barnett fame, and “Hart Energy’s Most Influential People for the Petroleum Industry in the Next Decade.”
- Nick Steinberger, a world-class drilling and completion expert, then innovative engineer behind the giant Barnett gas play
- Bill Cathey is geologist to the supermajors, including Chevron, ExxonMobil, ConocoPhillips …
This is the best of the best–all of them confident in the chance of discovering the largest oil play in the last 20 to 30 years.
And they’re also the numbers that helped Jarvie arrive at that estimate he stresses is highly conservative: a potential 120 billion barrels generated
Using the most advanced survey technology known to the industry and decades of experience as a world-class geochemist, Jarvie estimates 120 billion barrels…
$98 MILLION COMPANY HOLDING ALL RIGHTS TO POTENTIALLY THE NEXT PERMIAN BASIN
Reconnaissance Energy Africa could be the best oil play for 2021.
Now that the drilling permits have been awarded… and a 25-year lease is locked in…
Three drills are now being moved in to place. 400km of 2D seismic is being permitted and shot.
The first 12,000-foot drill is already operating… and the first 6-2 well has already been spudded.
Results should come in by quarter’s end.
Few analysts cover this little-known stock…
But Haywood Capital Markets predicts a quick 100% upside…
They’ve just increased their price target on this stock from $2.50 to $4.00 amid all the drilling excitement.
After that, expect two more drills to provide information on additional areas of the basin that Jarvie’s research, the areo-mag survey and Haliburton litho-tect survey say is underground.
If that happens, this could be front page news …
Time will tell, but one thing is certain… smart investors will want to track this story over the coming days.
By. Freddie Lambert
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