The World's Next Great Onshore Oil Discovery Could Be Here - Seite 3
Jarvie recently came out with estimates showing the potential for generation of 120 billion barrels of oil equivalent based only on 12% of Recon's holdings. He says he's being conservative. And it's not just 120 billion barrels to Jarvie: "We could even be looking at the last major onshore oil discovery on Earth."
Even better: ReconAfrica (RECO; RECAF) still has plenty of cash on hand to complete their drill program – and with a massive 8.5-million-acre land package, it's also got plenty of promising targets to choose from.
With the first test well already spudded, and drilling operations now underway as of today, by mid-February, we could already see them reach a depth of 12,000 feet. Next comes 2D seismic acquisition and interpretation in Q2 2021, followed by 6-2 well evaluation and drilling of two other back-to-back wells in the same quarter.
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By the second half of next year if everything goes to plan, it's likely RECO will already be in JV discussions if drilling goes as planned. RECO just went one step closer to de-risking a "massive
potential resource", according to Haywood. In a few weeks, early-in investors will find out, and it will be on everyone's radar.
Big Oil Could Benefit From The Price Rebound
Exxon (XOM) has been desperately pulling on all the levers in a bid to get through the oil slump with its dividend intact but could be running out of options. Exxon has
announced that it will cut 15% of its workforce in order to protect its fat dividend (10.6% yield) and also slash capital expenditure--again.
Like many of its peers, ExxonMobil has also shed nearly half of its value since the beginning of 2020. Despite this, Exxon has been making big moves in the energy realm, and is positioning itself
perfectly to capitalize on the rebound in oil prices, as well as the global pivot to natural gas, in the coming years.
Italian energy major, Eni (E), described 2020 as a "year of war", regarding the energy crisis experienced in the face of a global pandemic. But it may be too soon to see the issues faced
last year as a thing of the past. Eni is committing to lower the price of oil at which the company breaks even going into 2021, as a means of tackling the uncertainty of the oil economy in
the coming months. Francesco Gattei, CFO at Eni, stated that "Volatility is growing every year.", highlighting the need to be prepared for the energy demand of the future. In fact, Eni has now set
out a plan to lower its greenhouse gas emissions by 80% by 2050.