At US$8-10 million bux a well - plus seismic to pay for - plus the eFTG they have signed up for (?) which will do nothing useful geologically - I kind of doubt that they "have the money" to drill a dozen more wells?

 

Then there is the simple fact that the amount owed to the Mexicans keeps going up and currently sits at nearly US$70+ Million bux - and rising. Now of course - there is some disagreement on the rising interest amount on the original Principal - but that is neither here nor there.

 

They are carrying the land position as some US$88-89 million bux as an asset whereas in reality it is not an asset but a liability? (An asset has to have a genuine intrinsic value - or at least some reasonable expectation of value - and that is not proven yet.)

 

I have looked at the available North South seismic line that the Wisdom 5-1 well is situated on (not seen any of the other 2 lines over this location though.) 

 

On that seismic line - the Karoo section over the unconformity is very thin and there are no Karoo sands developed. What there is is a buried fault block Otavi hill. The Pre Karoo unconformity itself is sitting at the 600-650 millisecond TWT (Two way time) and that same unconformity surface was at 950 TWT in the Kawe 6-2 well - or at 1100m depth. The seismic both over and under the unconformity is noisy and extremely vague and devoid of character. The prospect would appear to be an interpreted weathering or karst development beneath the unconformity in the proterozoic Otavi carbonates. 

 

It will be an interesting drill - but they found nothing at the similar but deeper 6-2 Kawe well.

 

I did see an article where it is stated that they plan to drill a dozen new wells - however it is hard to see just what they can find that they have not already found in these three previous wells?

 

Reco seems to have as many lives as the proverbial cat - and it is fascinating to watch how they keep stringing the story line out.

 

GS