As expected, oil prices are going up! Goldman expects $65.00 a barrel by early next year and at least $43.00 by this late Fall! AOI is perfectly positioned. Some analysts see upside of $110.00 per barrel within months!
On another front, Total has rumored to have put the the Preowei production start on hold. Apparently, majors are trying to get Nigeria to lower royalties or they won't go through with development. Preowei was supposed to start producing 50,000 bopd in a year or so. Play hardball!
Kenya sale by Tullow is supposed to complete in a few weeks for a 20% share and Total wants to sell 12.5%. That would make a 32.5% operating vehicle for a major! Kenya is also asking for additional farmout money that seems ridiculous at this time and will slow down development. They will probably back off of their greed just like Uganda.
Only one direction for AOI....UP!