Reconnaissance Energy Africa Ltd (OTCMKTS:RECAF) stock has been gaining a lot of momentum over the past few months and made a new high of $9.30 on Wednesday.

Over the course of the past week, the stock has clocked gains of as much as 22% to take its gains for the year to 475%. It might be difficult to put one’s head around it but it is easy to see why this has happened.

The company recently announced the execution of a Joint Operating Agreement (“JOA”) to develop the resource potential of the Kavango Sedimentary Basin, Northeast Namibia.

Under the agreement, the two companies will jointly pursue an ongoing petroleum exploration program in the Kavango East and Kavango West regions of Namibia, with ReconAfrica covering the full costs to commerciality. The two companies initially entered into a Petroleum Exploration Agreement with the Government of the Republic of Namibia in 2015, under which they acquired Petroleum Licence No. 73.

The JOA was officially executed on Friday, June 11, 2021, and signed by ReconAfrica CEO Scot Evans and NAMCOR Managing Director Immanuel Mulunga.

“We are delighted to have finalized the negotiations and signature of a Joint Operating Agreement (JOA) with ReconAfrica for Petroleum Exploration License No. 73. This Agreement will govern the relationship between NAMCOR and ReconAfrica; and we will collectively advance the search for oil in the Kavango Sedimentary Basin in accordance with the Laws of Namibia. We understand the hydrocarbon potential of the Kavango Basin; hence collaborating with an international company with both technical and financial capabilities such as ReconAfrica will unlock the discovery of commercially viable hydrocarbon reserves and thereby enhance economic development in the country,” said Immanuel Mulunga, Managing Director of NAMCOR.