RE: Pareto Ohman translated
AFRICA OIL: Pareto TRACK NGAMIA-1 CONTENTS OF MORE THAN 250 MLN FAT (NY)
2012-08-15 11:56
(Appendix: last paragraph, Remiums estimate) (Bloomberg) Pareto Ohman predicts that the Kenyan oil discovery Ngamia-1 contains at least 250 million barrels of oil. The bank conceded that the upside is significant. It writes Pareto Ohman in a day's fresh analysis. For the full Lockhar area tracks investment bank that reserves could amount to at least 1.6 billion barrels, according to the analysis. Tullow Oil has previously indicated a figure of 9-10 billion barrels for the company any licenses in Kenya and Ethiopia. A reserve update third-party is expected shortly, more precisely in the middle of August. In Block 10BB, where Ngamia 1 well is located, is Africa Oil joint owner along with operator Tullow. Pareto Öhman has köprekommendation and price target of $ 100 (kroner) or 15/usd for Africa Oil's share. Remium in turn determines that Ngamia-1 contain 250-320 million barrels.
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At least 1.6 billion barrels in this basin alone... so I assume this 15 usd price target is JUST for this ONE well.. as the wells are proven up.. price target will have also go up. That price target does look a bit low.. Another brokerage house broke it down pretty good( forgot who) said... 1 billion barrels found would equal to about about 20/share for AOIs share. Say 10 billion barrels found in total ( after 3-5 yrs) AOI price = 100/share USD.. and if they get into the refining business and don't sellout at a hefty premium, I see AOIs price way way higher than the 100/share in 3-5 yrs.