African Curse
Go figure. AOI has 18% share ownership in EOG which holds just 15% interest in recent Jethro-1 discovery that reportedly found 100 million barrels of "possible" oil condensate that is rated "10P" but, nevertheless, being pumped up as holding billions in barrels of oil. "Possible" reserves are attributed to known accumulations that have a less likely chance of being recovered than probable reserves. This term is often used for reserves which are claimed to have at least a 10% certainty of being produced ("P10"). Reasons for classifying reserves as possible include varying uncertainty due to reserve infill (seepage from adjacent areas) and projected reserves based on future recovery methods. The next prospect Joe-1 is a total bust...Additionally, AOI will spend every cent of it's cash hoard of US$340 million on acquiring into 25% of the consortium that is buying 50% of the Nigerian asset offloaded by the scandal-ridden Petrobras for US$1.4 billion in cash, i.e. AOI's will dish out US$350 million on its 25%participation...The Kenya oil's production is still up in the air for a Final Development Decision (FID) by Tullow...AOI will likely have to go into serious debts to carry any decision on the future pipeline & infrastructure costs in Kenya...If you want to talk revenue, just look at Lundin's Sharmaran Petroleum (SNM) that has "proven" resources of 250 million barrels in the ground producing 50,000 barrels a day in Kurdistan Iraq that they own 27.6%. SNM has received many millions in cash flow, but hasn't turned any net profits with the stock begging at 8 cents...AOI is still a piece of dogshit - not worth more than its current value.