Africa Oil Corp. AOIFF

Impact valuation

[Lonegaurdian19]

Any thoughts on Impacts valuation? Seems like they paid a pretty penny to maintain roughly 30%. Previous articles said Impact was seeking 1-2 billion for its stake. That should increase with successful testing drills. It's my opinion with TVM (at least 4 years to 1st oil) they could likely get $1-3 per barrel in ground (this thing is deep). I've heard anywhere from 4-10 billion barrels in place. This things a beast in terms of input costs so using the middle ground $2 in ground and 7 billion barrels recoverable. 2 x 7 billion = 14 bil project, 14 bil @ 19% = 2.66 bil impacts stake. 2.66 @ 31% = $824 million net to AOI. Feel free to chime in or pick that apart as you will.

[Suppe11]

I like your conservative calculation/approach. To me, the main point is...when was the last time a small explorer got 1b+ on some holes in the ground ? Long, long ago. Imho...the intention of the Impact mm is clear...get the exploration costs back, get some small Wi (or royalty) with a carry to production and that's it...saves the overhead for decades and they can go on. Beside the mm wish