RE:Africa Energy Reveals Total's Luiperd Drilling Timeline
This news all looks good, but one thing worries me.
"the Luiperd-1 well is expected to spud in Q2-2020,” Africa Energy, which owns a 4.9 percent in the block via its stake in Main Street consortium"
AFE has a 4.9% interestand it currently has a market cap. of $253 million, thus just to justify today's AFE price, the entire field has to be worth at least 100/4.9 * $253 or
$5.1 Billion. That kind of value, is not easily obtained, worse yet in order to for the AFE price to double from here the whole value has to be over $10 billion and this is in an area that will be very difficult to develop and as such have high costs.
I though the stock was a reasonable buy when I was purchasing it in the summer for 21 cents a share, but at the current 36 cents a share, I am a seller.