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.

TSX:AOI - Post by User

Africa Oil Corp.

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Post by Oregonduckon Mar 24, 2020 3:16pm

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Post# 30842810

Hedging v. physical deliveries

As I said before, AOI's is hedged by way of crude swaps and futures and not on its physical oil cargoes. There is some risk that the counter parties may default on their contracts. Otherwise, AOI will reap its financial gains on the hedges when unwound.

Vitol with revenue of over $200 billion is the largest oil trader in the world and the former bidder in concert with AOI & Delonex for the Nigerian assets. They ran away from the deal because as reported: "... the deal took too long to close...it would not have got physical oil cargoes from it. At the end of the day, it was a non-core business for Vitol, so they walked away"

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