translation
CEO Keith Hill presents the status, history and prospects for Africa Oil, in Stockholm City Conference Center. 2013-03-07.
CEO Keith Hill presents the status, history and future prospects.
Mr. Hill says it was easy to get the money to explore and drill in East Africa.Ngamia be tested now with better equipment, maybe twice outcome compared with Twiga. The Twiga porosity was good, but the CEO was nervous of how permeability (permeability in the rock) would be. It was found to be good. Ekales's next well drilling.
The costs are almost completely fixed for years, so now it is to be effective and the focus will be on drilling so many sources and so many yards as possible per dollar. Nick Walker is new COO, who got down costs by 30% after Keith in another company. Keith thinks he has a good management team. Mr. Hill talks about all the new possible oil fields and is very enthusiastic about the different charts as the geologist he is. At least 300-500 million barrels needed to start building the pipeline.
The shares are $ 7, is strange now that it's proven oil and flow, and there is money for a year's drilling. Previously accounted share of $ 10 and everything was uncertain. CEO do not really understand why this is so, it seems to be a general push down on less oil and mineral companies, extra weird when Dow hit a new record. But stock market seems to be now. AOI can work on and prove more and more oil, then the valuation will eventually catch up. Keith get calls almost every week from major oil companies who want to enter East Africa. He greets to hear from you in two years when we know how big this is, they (Lucas Lundin / Keith Hill) will not sell for cheap too early. Perhaps they can start extracting the oil. Probably sell the company in cash or bring in a strategic partner for the extraction. But that's two years in the future.
Horn planned to start drilling again, Keith believes in oil which, although it has been dry so far, so we can get a "trap" so there should be oil there, instead of everything has drained. The political situation should stabilize somewhat first.
The Kenyan election increases the uncertainty now, but so far everything is fine. President Hill points out to representatives of Kenyan government that destroys future opportunities if it is to change the contracts now. Other companies will be very careful to enter Kenya. The state receives 65%, even more go to Kenya if it turns out to be a lot of oil, which is a good agreement for all parties, but not "too" good for AOI. Abu Dabhi, for example, 93% to the state, but it is the most in the world.
Paipai is a question mark, very high pressure 7200 PSI. Oil or gas.
Sabisa hit could increase the share price by 45% and by 25% for dry drilling.It is bad, but the market seems to be such today. Sabisa hit should increase the valuation by 100%, according to Keith Hill, the oil reserves doubled. We each hit so increases the likelihood that other regions will meet and rises on all licenses and reasonably on the company. (Strange that every time there is something positive to sink the share price by 10%)
Africa Oil and other Lundin company, working for "social licensce to operate ', ie, the locals have a positive view of the oil company and what it does. It is the best safety measures.
Now it's on to demonstrate more oil and increase the Net Best Estimate and also get over it in a new column to the right with 2C and 2P categories. Which will increase the value of the company and the interest in buying. Keith believe that at least one more field should show commercial oil, most likely two or three. He takes the sample calculation that no more oil there than in the first Lokichar basin, which would give a value for the AOI of $ 20.
18 analysts förljer company and their average score is 11.5 U.S. dollars, equivalent to about 70 USD.
View the presentation in PDF:
https://www.africaoilcorp.com/i/pdf/2013-02-28_CP.pdf
See Karle's summary of upcoming drilling mm Avanza forum AOI.
https://www.avanza.se/aza/press/forum/postsForUser.jsp?signatureId=18677
https://www.avanza.se/aza/press/forum/postsForUser.jsp?signatureId=18677 # post_2826024
Maybe put someone up the oral presentation on the internet too. I waive any responsibility. Please comment.