Reconnaissance Energy Africa (TSE:RECO)
:RECO
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Reconnaissance Energy Africa
(RECO)
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Rating:47Neutral
Price Target:
C$1.00
▲(16.28% Upside)
Action:Reiterated
Date:05/23/26
The score is held back primarily by ongoing losses, zero revenue, and continued cash burn, partially offset by a comparatively strong, debt-free balance sheet. Technicals are neutral-to-weak and valuation is constrained by negative earnings and no dividend support.
Positive Factors
Debt-free balance sheet
A zero-debt capital structure materially reduces solvency risk for an exploration firm, increasing flexibility to fund multi-year seismic and drilling campaigns. It improves the company's ability to absorb setbacks, attract JV partners, and negotiate farm-outs without immediate debt servicing pressure.
Negative Factors
No revenue base
The absence of any production revenue means the company has not yet validated a commercial asset; margins and earnings capacity remain theoretical. Long-term returns depend entirely on exploration success and successful monetization, leaving intrinsic cash generation and profitability unproven.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
A zero-debt capital structure materially reduces solvency risk for an exploration firm, increasing flexibility to fund multi-year seismic and drilling campaigns. It improves the company's ability to absorb setbacks, attract JV partners, and negotiate farm-outs without immediate debt servicing pressure.
Read all positive factors
Reconnaissance Energy Africa (RECO) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$458.45M
Dividend YieldN/A
Average Volume (3M)794.88K
Price to Earnings (P/E)―
Beta (1Y)0.81
Revenue GrowthN/A
EPS Growth50.47%
CountryCA
Employees27
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)-0.04
Shares Outstanding378,881,700
10 Day Avg. Volume597,998
30 Day Avg. Volume794,885
Financial Highlights & Ratios
PEG Ratio0.37
Price to Book (P/B)1.39
Price to Sales (P/S)0.00
P/FCF Ratio-6.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Reconnaissance Energy Africa Business Overview & Revenue Model
Company Description
Reconnaissance Energy Africa Ltd., a junior oil and gas company, engages in exploration and development of oil and gas potential in Namibia and Botswana. It holds a 90% interest in a petroleum exploration license that covers an area of approximate...
How the Company Makes Money
RECO’s business model is primarily exploration-stage and is generally aimed at creating value by identifying and de-risking potentially commercial hydrocarbon resources and then monetizing that value through one or more pathways: (1) farm-out/join...
Reconnaissance Energy Africa Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
72
Positive
Cash Flow
22
Negative
| Breakdown | Mar 2026 | Jun 2024 | Mar 2024 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 0.00 | 0.00 | 305.14K | 4.97M | 2.19M |
| Gross Profit | -66.96K | -57.93K | -67.39K | -2.09M | 1.49M |
| EBITDA | -16.30M | -24.46M | -21.02M | -37.02M | -259.53M |
| Net Income | -15.81M | -26.05M | 41.11K | -58.36M | -263.41M |
Balance Sheet | |||||
| Total Assets | 212.61M | 195.87M | 142.30M | 190.34M | 133.93M |
| Cash, Cash Equivalents and Short-Term Investments | 3.29M | 11.41M | 2.08M | 55.96M | 61.15M |
| Total Debt | 0.00 | 0.00 | 0.00 | 94.95M | 41.01M |
| Total Liabilities | 4.67M | 4.84M | 5.45M | 107.02M | 48.70M |
| Stockholders Equity | 207.94M | 191.03M | 136.85M | 83.33M | 85.22M |
Cash Flow | |||||
| Free Cash Flow | -45.07M | -61.19M | -31.65M | -79.17M | -47.35M |
| Operating Cash Flow | -10.31M | -19.83M | -14.54M | -27.86M | -11.71M |
| Investing Cash Flow | -34.75M | -31.41M | -17.38M | -51.30M | -21.32M |
| Financing Cash Flow | 36.93M | 55.58M | 8.57M | 47.25M | 87.40M |
Reconnaissance Energy Africa Technical Analysis
Positive
0.86
Price Trends
1.10
Positive
0.99
Positive
0.80
Positive
Market Momentum
0.01
Negative
67.67
Neutral
86.07
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RECO, the sentiment is Positive. The current price of 0.86 is below the 20-day moving average (MA) of 1.09, below the 50-day MA of 1.10, and above the 200-day MA of 0.80, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 67.67 is Neutral, neither overbought nor oversold. The STOCH value of 86.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:RECO.
Reconnaissance Energy Africa Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | C$552.20M | 13.82 | 5.39% | 21.85% | -29.99% | -70.33% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
59 Neutral | C$494.91M | -121.79 | -2.71% | ― | 29.68% | 89.77% | |
58 Neutral | C$258.76M | -295.24 | -0.27% | 6.19% | 8.02% | -80.95% | |
48 Neutral | C$476.72M | -12.05 | -10.86% | 12.70% | 119.35% | -533.65% | |
47 Neutral | C$458.45M | -30.08 | -6.97% | ― | ― | 50.47% | |
46 Neutral | C$226.04M | -20.58 | -31.31% | 3.16% | -10.58% | 43.44% |
* Energy Sector Average
TSE:RECO
Reconnaissance Energy Africa
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Reconnaissance Energy Africa Corporate Events
Business Operations and StrategyExecutive/Board ChangesPrivate Placements and FinancingRegulatory Filings and Compliance
ReconAfrica Advances African Exploration Portfolio on Kavango Discovery and New Gabon, Angola Entries
Positive
Apr 15, 2026
Reconnaissance Energy Africa reported a “transformational” 2025 as it advanced its African exploration portfolio, highlighted by the Kavango West 1X discovery well in Namibia and expansion into Gabon and Angola. The company also renewe...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.