Africa Oil Corp. T.AOI

Alternate Symbol(s): AOIFF

Energy Oil & Gas E&P

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.

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Africa Oil Corp.

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Post by fasttrack5on Dec 05, 2013 2:51am

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Post# 21973087

Answer to Guess from II



They got bought out.



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Hi Guess. Thanks for your response. You strike me as someone who views things rationally. Do you have a view on Swala Tesources on the ASX:SWE? I think they are much undervalued - wanted to get your take. More View thread 3 Respond Login to Vote up
Wed 11:44	Re: November Results?	Guesstimate	3


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Last Agete release pushed expected news of Bahasi and Tultule results back to "in December", possibly relating to the drill problem rumours that wheeliebin mentioned. Must confess have a bad feeling about North Turkana basin. Hopefully proven wrong but I think the next positive price drivers might be the well tests on Etuko, Ekales and Agete, and those probably won't materialise until end December. Thinking aloud, realistic recap of where we are: The only valuation metric, lacking any earnings or proven reserves, is 2C resources. At the moment AOI's share of 2C resources is 50% of 368mboe (which includes a best estimate of 100mbo for Etuko), plus 47mboe from Ethiopia block 7/8, or 231mboe total. Both Agete and Ekales had at least 60 - 100m net pay, which makes them more on a par with Ngamia than Twiga (that's being conservative on net pay estimates, given how Ngamia eventually played out). We could reasonably hope for in excess of 100mboe 2C resources from each well, lifting AOI's share of the total to 331. Calculations differ, but using an in the ground price of $8/barrel, 331mboe x $8 lifts our resource base to US$2.65bn, or C$9.11 per share. I think that's what's currently priced in and the froth that took us to C$10.60 was Chandler building a 10% stake. It won't be fun watching it, but this could easily retrace 10% to the low C$9's and still be hugely positive. Probably healthier in the long run. However, looking forward, that valuation is very much a base. Obviously we're hopeful that the other 5 or 6 prospects in the Lokichar deliver and the full appraisal of Twiga and Ngamia adds to the total. I don't see a doubling as unrealistic, and then we're well in to the C$14-C$20 targets of the brokers. And those volumetric estimates of 2C resources ignore any possibility of the wells being linked, and we are also ignoring the chance that any other basin hits. If you think about it rationally, it does seem absurd that a company could be worth $5bn plus with no bookable reserves and no income, hence why doubts creep in. Does anyone know, has there ever been an oil explorer in such a position, where they've hit such a big find so early in their drilling career? What happened to them? Any thoughts?