RE:Well It Would Seemargaiv wrote: That there is plenty of oil on earth. So that billion barrels of oil does not ssem like such a great asset anymore. The royalty payment would have to be very worthwhile to justify the cost of builiding the pipeline.
AOI has 1P (proven) Nigerian reserves pegged at 50 million barrels. It is now producing some 35,000 bopd or roughly 12 million per annum (based on 2018-19 depletion rate). So, unless new production is brought on stream by Total, or the 2P probable reserves are proven up, the proven reserves will be depleted in a few short years. Offshore exploration is not happening due to low oil price and the Nigerian oil law in limbo concerning offshore oil.
Techically speaking, the stock chart is in a "Death Cross" with 50-day under the 200-day - a very bearish sign.
There is no storage facility anywhere in Europe for Nigerian Brent crude, and on last Friday, there are 60 million barrels floating st sea.