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Africa Oil Corp. T.AOI

Alternate Symbol(s):  AOIFF

Africa Oil Corp. is a Canadian oil and gas company with producing and development assets in deepwater Nigeria, an interest in the Venus light oil and associated gas discovery, offshore Namibia, and an exploration/appraisal portfolio in west and south of Africa. The Company holds its interests through direct ownership interests in concessions and through its shareholdings in investee companies, including Prime Oil & Gas Cooperatief U.A. (Prime); Impact Oil and Gas Limited (Impact); Africa Energy Corp. (Africa Energy), and Eco (Atlantic) Oil & Gas Limited (Eco). The Company is focused on its Nigerian assets, Namibian Orange Basin opportunity set (Blocks 2913B and 2912), Block 3B/4B in South Africa's Orange Basin, and Equatorial Guinean exploration blocks (EG-18 and EG-31). The Block 3B/4B covers an area of approximately 17,581 square kilometers (km2) within the Orange Basin offshore of the Republic of South Africa. The Company has approximately 17% interest in Block 3B/4B.


TSX:AOI - Post by User

Bullboard Posts
Comment by StupidInvestoron Oct 28, 2009 8:27am
227 Views
Post# 16430139

RE: Selling to Raytec

RE: Selling to Raytec

To reduce risk. The oil looks like it's there, but we don't know how many holes have to be drilled to get it out of the ground. Drilling is high risk. Sure, if you strike oil on the first hole in each prospect, it's bad they farmed out part of it. But if it takes 5 drills before you strike oil, it's a good thing they farmed out part of it. All companies farming get to pay a "disproportionate" part of the cost, and hopefully disproportionate the way we want it. :-)

After all their farmouts, Africa Oil's interest looks (to the best of my knowledge) like this:

 

Somalia Dharoor: 65% Working Interest / 50% Paying Interest
Somalia Nogal:  65% Working Interest / 70% Paying Interest
Ethiopia 2,6,7,8:  55% Working Interest / 30% Paying Interest
Ethiopia Adigala:  50% Working Interest / 0% Paying Interest
Kenya 10A:   55% Working Interest / 20% Paying Interest
Kenya 10BB:   80% Working Interest / 60% Paying Interest
Kenya 9:   20% Working Interest / 26.67% Paying Interest

Bullboard Posts