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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 creaturecomphorton Oct 15, 2012 7:04pm
276 Views
Post# 20486298

RE: RE: RE: RE: perspective

RE: RE: RE: RE: perspective

I hold both HRN and AOI. 

 

I sold enough AOI to pay for my initial investment so what I continue to hold is a free  ride.  At the current stock price I'm at about 10x on what I hold.  A 3% drop in price today doesn't do much to upset my confidence in the company.  I anticipate another 2x to 3x rise by the time AOI is acquired.  Then I'm out. 

 

I own HRN from two separate private placements.  The first one is a free ride at this point.  I hold shares and warrants from that purchase.  I'm still fully invested in the second one and own all the shares I purchased in that PP + the warrants.  So the only money that's mine and at risk is the second PP from HRN. 

 

HRN has a great management team and they are in an opportunity rich part of the world.  I'm not concerned about HRN finding considerable oil.  Timing of the find is important because it will determine the amount of dillution from any future PPs that may be required.  The sooner the better.  But even so, I do not expect to lose money on HRN.  HRN may not be as productive for me as AOI, but I anticipate a good return overall. 

 

I'm invested equally in about 10 other early phase oil drililng companies as well, most via private placements.  This is a very lucrative area for speculative investment.  But you have to manage your risk.  Aside from picking great management teams searching in resource rich and politically ok countries (mostly), I diversify holdings to spread risk and I ALWAYS seek a free ride.  With warrants the free ride is easier to achieve. 

 

Reason I bring all this up is because it keeps my blood pressure down and keeps me from being a message board jerk.  Best of luck.

 

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