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Africa Oil Corp. T.AOI

Alternate Symbol(s):  AOIFF

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

Bullboard Posts
Post by Oregonduckon Apr 24, 2020 3:55pm
227 Views
Post# 30951358

Better be Lucky

Better be LuckyI agree with Firstworld.

Petrobras & BTG tried without success to jointly dump this Nigerian asset since 2017 before AOI got hooked. Petrobras offload its 50 percent to AOI for Usd$1.5 bn. BTG was stuck but to sweeten the pot, it loaned AOI $250 million bridge financing in order to close the deal.

Vitol and the other partner were lucky they run from the original consortium just before Covid-19 hits the fan in Jan. 2020.

AOI went from a co. flushed with Usd&350 million cash and no debts to a co. with no cash and over Usd$1 bn in debts. The assets bought have subsequently been devalued by around 50 percent due to the fall in oil. 

Lukas Lundin famously
made his money "selling". He sold Tanganyika Oil to Sinopec for $2 bn. Sinopec is said to rue the takeover for oil in Syria with buyer's remorse. Lukas also sold Red Back Mining to Kinross Gold ofor $7bn that was later found to have little gold and had to be written off by Kinross.

As the saying goes, "it is better to be lucky than be good".


Bullboard Posts