Simba Essel Energy Inc SMBZF

RE: RE: Africa Oil Announces $193.75 Million Priva

[TCup]

This is no surprise. A lot of financial commentators made reference to AOI needing to raise equity since their first big discovery well. This is how you build a little company into a big company. As the stock runs higher and higher you do PPs at higher and higher prices. Once into production you raise debt by paying the debt from cashflow and continue to build the company. The hope for all juniors is to get to a discovery without to much dilution to equity, case in point, AOI is raising a lot of Cash with only 25 million share dilution. Prior to their big discovery that would amount to 200 miilion share dilution. Hopefully SMB will evolve in the same manner. Time will tell. Big risk, big reward.