RE: RE: RE: RE: RE: RE: RE: RE: RE: News ,New Lice All your points are valid, guys. But there are valid counterpoints to each one too. Without getting into a list, AOS is doing what they said they would do in Nov/12, a strategy they repeat in every acquisition NR:
The Company intends to identify and acquire a majority position in assets which meet the following criteria, with a primary focus on the continent of Africa:
1. Geologically prospective exploration licenses in existing petroleum producing basins, or discovery basins, surrounded by current and expected exploration and drilling activity.
2. Geologically prospective exploration licenses in basins recognized favourably by the Canadian capital markets, and for which a premium is currently being awarded for those companies who are able to secure a critical mass presence.
3. Government granted or privately negotiated acquisitions of assets with minimal work commitments over the next 12 - 18 months, in order to provide both maximum flexibility, and optionality.
I don't think these guys intend to ever pump a barrel of oil. Look at their CVs; they're investment lawyers and financiers, not oil men. They recognize we don't have the money for exploration and development in Alberta or Africa. Their strategy is to acquire licences, wait for surrounding license holders to spend the big bucks to (hopefully) prove up large resources, and catch a rising tide.
Our SP would be where it is regardless. Oilsands are out of fashion. They're expensive, dirty and land-locked. There are more and more viable sources being found around the world. All oilsands plays are at or near multi-year lows. Combined with the global economy, this is lousy time to be in oilsands, oil or any resource. No one foresaw the extent of this.
So I don't mind taking this flyer in Africa. What pizzes me off the most is dumping our assets in this market. I think it's a rock and hard place that calls for tough decisions.