Rankings Oil & gas ReconAfrica
ReconAfrica
43
15070100
A view of the same findings, not a new score. How it works
The model found several serious problems. That does not mean the stock will fall.
Biggest deductions
- Margin−10
- Project quality−9
- Capital allocation−7
Strengths
- Strategic partner+2
- Working petroleum system proven+1
How the score is built
From 100 to 43, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 2 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 0.50 CAD
- Median analyst target
- –
- Upside to median
- –
- Analysts
- none
- Target range
- –
- 52-week change
- −7%
- P/E (trailing)
- n/a
- Forward P/E
- n/a
- PEG
- n/a
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 3 findings−26 of −30
- −10MarginNo revenue; operating result −16.2m CAD and FCF −52.0m TTM (capex 39.3m). ROIC −7%. The loss is counted only here.
- −9Project qualityKavango West 1X has brought gas and possible liquids to surface from Elandshoek and Huttenberg, but flow rates were not measured due to equipment limitations, and the company itself writes that the results are not proof of commercial production. The find is primarily gas in a remote basin without gas infrastructure or market, and after six years of exploration there are still no reserves.
- −7Capital allocationThree issues in 15 months: CAD 19m at 0.50 (June 2025), CAD 36.8m at 0.95 (January 2026) and CAD 15m at 0.73 (September 2026), all with half or full warrants. The share count rose 32% in a year.
Price
Today's multiples against the company's own history and its peers. · 1 finding−7 of −35
- −7Price versus peers and resourcesEV pro forma about CAD 239m for an exploration project with no measured flow rates. Eco Atlantic (offshore Namibia/South Africa/Guyana) has an EV of CAD 202m. P/B 1.07 is based on capitalised exploration expenditure. NSAI's prospective resources (3.4bn barrels in the Damara Fold Belt) are unrisked and cannot be used as NAV.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 4 findings−21 of −35
- −6Licence and permit riskThe second renewal period for PEL 73 has been extended one year to 29/1-2027, and the environmental approval for 12 new wells expired 4/7-2026 (renewal not found). Drilling is paused while the company awaits equipment and amended permits.
- −7Financing and runwayCash was 24.2m CAD as of 30 Jun 2026 with a burn of approx. 9–10m per quarter before the horizontal sidetrack. Even with the 15m offering in September, the cash lasts approx. 8–9 months, so a new offering in H1 2027 is likely.
- −6Technical riskCommercial rates require an open horizontal sidetrack of up to 1,000 m perpendicular to nearly vertical fractures. This is a new and unproven method in the basin, and the timetable has not been published.
- −2Warrant overhangWarrants at CAD 0.60 (2025; BW Energy alone holds about 25m), about 19.4m at CAD 1.20 (expiring January 2029) and about 10.3m at CAD 0.93 (expiring September 2029) cap the share price at each rise.
Plus
Only documented strengths. · 2 findings+3 of +15
- +2Strategic partnerBW Energy has a working interest in PEL 73 and owns 6.96% of the shares (26.3m shares plus 25.2m warrants) and has taken part in the 2025 and 2026 issues.
- +1Working petroleum system provenFirst hydrocarbons ever produced to surface onshore in Namibia (July 2026), and 76 m of net pay identified in Huttenberg.
Caveats
What the score does not capture, or where the data is weak.
Penny deep dive (the price of DKK 2.79 is below DKK 3). Oil and gas explorer in the Kavango Basin in Namibia (PEL 73, 70% operator with BW Energy and NAMCOR) as well as Angola (MoU) and offshore Gabon (Ngulu). A price of CAD 0.60 and 445.89m shares (stockanalysis 10/10-2026) give a market cap of about CAD 268m; Nordnet showed DKK 1,041m, probably with an outdated share count. The share count appears to include the September 2026 offering (20.5m units at CAD 0.73). Cash at 30/6-2026 was CAD 24.2m; pro forma about 28-29m after net proceeds of about 14m and an estimated Q3 burn of about 10m. There are no measured flow rates, no reserves and no resources in the NI 51-101 sense, only prospective resources from NSAI (2024). The number of warrants from the 2025 offering at CAD 0.60 has not been found. Short data does not exist for TSXV.
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