July 28, 2020 Tom Linzmeier, editor LivingOffTheMarket.com

ReconAfrica (RECAF)* $0.6115

LOTM suggests considering ReconAfrica as a speculative buying opportunity based on

Should these initial exploratory drill attempts (fracking with lateral extensions) de-risk the property, it could result in a three to ten-fold increase in value of the company. ReconAfrica has 90% and 100% drilling rights to about 8.75 million square acres of property. For perspective, this mineral right property, is equivalent in size to the Eagle Ford oil and gas basin in Texas. There are more than 200 companies working projects in Eagle Ford play last year. If ReconAfrica finds oil – there is value here. And that’s Wildcatter opportunity and risk.

There has never been a basin with the geology of this property that has not successfully found oil and gas. At $64 million in market cap with no debt, the up-side with a successful trial is large.

Some readers have asked about the relationship between Recon Africa and the two governments they are operating in. The two countries are Namibia and Botswana.

This article shows the relationship between ReconAfrica and Namibia is excellent. Botswana is the same. To received 90% and 100% operating interest of a natural resource in any country is exceptional. This is especially true when the size of the prospect Recon Africa has locked down is considered.

Namibia Ministry of Mines and Energy Designates ReconAfrica Drilling Operations as Essential Service            July 27, 2020

Who are Namibia and Botswana as countries?

 Botswana: A mid-sized country of just over 2.3 million people, Botswana is one of the most sparsely populated countries in the world. Around 10 percent of the population lives in the capital and largest city, Gaborone. Formerly one of the poorest countries in the world—with a GDP per capita of about US$70 per year in the late 1960s—Botswana has since transformed itself into an upper middle income country, with one of the world’s fastest-growing economies. The economy is dominated by mining, cattle, and tourism. Botswana boasts a GDP (purchasing power parity) per capita of about $18,825 per year as of 2015, which is one of the highest in Africa. Its high gross national income (by some estimates the fourth-largest in Africa) gives the country a relatively high standard of living and the highest Human Development Index of continental Sub-Saharan Africa.

Namibia: In 2013, global business and financial news provider, Bloomberg, named Namibia the top emerging market economy in Africa and the 13th best in the world. Only four African countries made the Top 20 Emerging Markets list in the March 2013 issue of Bloomberg Markets magazine. The data came from Bloomberg’s own financial-market statistics, IMF forecasts and the World Bank. The countries were also rated on areas of particular interest to foreign investors: the ease of doing business, the perceived level of corruption and economic freedom. To attract foreign investment, the government has made improvement in reducing red tape resulted from excessive government regulations, making Namibia one of the least bureaucratic places to do business in the region. Facilitation payments are occasionally demanded by customs due to cumbersome and costly customs procedures. Namibia is also classified as an Upper Middle Income country by the World Bank, and ranks 87th out of 185 economies in terms of ease of doing business. Namibia has a population of 2.6 million people and a stable multi-party parliamentary democracy.

ReconAfrica Research Report: July 2020

The Elephant in Namibia – Mark Heim CFA

Who is ReconAfrica?

ReconAfrica is a junior oil and gas company engaged in the exploration and development of oil and gas in NE Namibia and NW Botswana—the “Kavango Basin.”

* An account related to LOTM holds a position in this security. Neither LOTM nor Tom Linzmeier is a Registered Investment Advisor. Please refer to our web site for full disclosure at www.LivingOffTheMarket.com ZTA Capital Group, Inc. Attn: Thomas Linzmeier

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