Recaf Stock Forecast : Disappointing results of Makandina well, stock crashed by 40%

Recaf Stock Forecast : Disappointing results of Makandina well, stock crashed by 40%

RECAF Stock Forecast: Wisdom 5-1’s operations will start in December and any positive results regarding 5-1 are the hope for the stock to go up

RECAF Stock Forecast:

The outlook is negative. The stock is a strong sell.

RECAF Stock Forecast: Price today

 PRICE  $1.41
 Market cap  $284.3million
 Volume  5.2 million
 1-year target estimation  Not available

RECAF Stock Forecast: Recent Performance          

  Stock name  5 days    1 month  YTD
  RECAF  -49%  -56%    -71.5%
  NASDAQ    +5.6%  +10.2%  -5.7%

RECAF Stock Forecast: Latest News

  • Recaf declared Makandina 8-2 well results: Recon Africa declared the results of Makandina 8-2 well which was spud on June 25, 2022, and reached its depth in August 2022. This well was geologically successful but failed to find commercial hydrocarbons. This was expected due to the absence of a trap or 4-way dip closure. They also found useful information about the Karoo and pre-Karoo stratigraphy. The failure in finding commercial hydrocarbons led to the stock plunge by around 40%.
  • Recaf’s update on Wisdom 5-1 well and seismic results: The company is preparing to spud Wisdom 5-1 well by mid-December of 2022. This well will test stacked plays in a different part of the Karoo Rift Basin. The objective of this well is to penetrate extended Karoo stratigraphy and the deeper Pre-Karoo stratigraphy again. Karoo rift basin is also controlled by 3 seismic lines. It also declared results regarding the phase1 and phase 2 seismic operations. It said that the phase 2 seismic acquisition showed leads and capable drilling targets. The Karoo rift basin was found in theKavango basin and is expected to show capableprospects. Targets were also found in the “Damara Fold Belt”, capable of Pre-Karoo stratigraphy.
  • Approval for Phase-2 extension: Recently, ReconAfrica received approval for their Environmental Compliance Certificate from the Namibian government which allows them to obtain up to another 1500 kilometers of 2D seismic data. This will be implemented by Polaris Natural Resources (A Canadian seismic acquisition company), which is planned to start by November and will be continued atleast till April 2023.

RECAF Stock Forecast: Latest Video

YouTube video

RECAF Stock Forecast: Price target

 Price TargetNot available

RECAF Stock Forecast: Q2 Results

  • RECAF released its Quarter 2 (which ended on June 30, 2022) results in August 2022.
  • The company’s total revenues were declared as $1.3 million.
  • Its gross profit was $0.5 million,
  • Operating expenses were reported as $10.1 million.
  • The company’s operating income decreased by 9.4% over a year and was reported as -$9.7 million.
  • Its net income was -$11.1 million, down 21.6% Y-o-Y.
  • Revenue per share was $0.01.
  • Diluted earnings per share (EPS) were declared as -$0.06.
  • Its EBIT was declared as -$9.7 million.

RECAF Stock Price Prediction: Short-Term Outlook

1. Market’s WisdomNegative
1a. Market DataNeutral
Performance vs NASDAQ (Last 5 days)Lower
1b. TechnicalStrong sell
2. Crowd’s WisdomNeutral
2aGoogle SearchHigher
2b. Social Media SentimentLower

RECAF Stock Forecast: Conclusion

The company has been performing well until the latest disappointing results about the Makandina 8-2 well. The stock price is sensitive to the company’s exploration updates and the latest results led the stock to plunge by around 40%, which is a huge fall. Another negative aspect that cannot be ignored is the protests by environmental activists to stop the drills, even though the high court ruled out a case, a few months back, the risk is still present and cannot be ignored. The next target well i.e; Wisdom 5-1’s operations will start in December and any positive results regarding 5-1 are the hope for the stock to go up, but at this moment the stock is a sell.

Vaishnavi Bommu

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.