East African Oil - Hard Going KH also said that AOI was looking at the possibility of going into production. To suggest that, they must be very confident they will find huge reserves prove up the "String O' Pearls". Makes sense if you find multiple billionsof barrels.Hopefully they can raise 200-300 million needed with a dilution of no more than 10 million shares. This should keep them busy for the next year or so giving them the opportuntiy to de-risk the property to a greater extent, proving up recoverable reserves. It would not surprise me at all to possibly see a triple digit SP here within 3-5 years. Who knows, maybe by then a big fat dividend too. AOI long and strong!
Tullow Oil has moved into the production space over the last few years, hoping its development assets can fund further exploration, thus avoiding the need to raise fresh equity.
https://www.equities.com/news/headline-story?dt=2012-11-22&val=746783&cat=energy