The World's Next Giant Oil Discovery Could Be Here
January 12, 2021 at 08:00 AM EST
LONDON, Jan. 12, 2021 /PRNewswire/ -- There's a breaking energy story that could potentially be a repeat of Texas' multi billion dollar Midland Basin…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 … Mentioned in today's commentary includes: British Petroleum (NYSE: BP), ConocoPhillips Company (NYSE: COP), Petrobras (NYSE: PBR), Enbridge (NYSE: ENB), CNOOC Limited (NYSE: CEO).
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 oil 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 (RECO.V, RECAF)
One of the key men behind what could end up being the onshore exploration play of the decade, former Navy 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…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
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 Texas and 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.
This is 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. And now Recon Africa (RECO.V, RECAF) has locked up what even WoodMackenzie sees as a potential NEW Permian basin with conventional oil and gas potential… for 25 years.
THE GEOCHEMIST GENIUS WHO UNCOVERED IT
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
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. Those are the numbers that have attracted a "who's who" exploration and technical team to move this project forward with Reconnaissance Energy Africa (RECO.V, RECAF)
In short…Using the most advanced survey technology known to the industry and decades of experience as a world-class geochemist, Jarvie estimates 120 billion barrels…Investors will find out soon as Reconnaissance Africa's 3-test drill results come in.
$98 MILLION COMPANY HOLDING ALL RIGHTS TO POTENTIALLY THE NEXT PERMIAN BASIN
Reconnaissance 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 company...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.
While this challenge may prove difficult for Enbridge to overcome, the health of the Canadian oil industry is improving, and with it, the outlook for Canadian producers such as Enbridge. The company has already started the year off strong, and if it can continue its momentum, it will likely be able to see a sustained rally in its share price over the course of the year.
It's not yet clear how the growing antipathy between the two nations will affect the U.S. natural gas sector, given that CNOOC is China's largest importer of LNG. But as the Biden Administration prepares to take power, Chinese companies, including CNOOC, are likely to breathe freely once again, and it could be a boon for Chinese stocks.
By. Freddie Lambert
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