Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

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 Sep 01, 2020 1:03am
222 Views
Post# 31484802

Bad Deal

Bad DealAny company that has to pay 15% is a junk stock.

All figures in US dollar.

The Co still owes $176 million on its Btg Pactual loan at junk bond rate. Plus nearly $800 million more to a syndicate of international banks for its RBL loans secured by all Nigerian oil reserves.

As of Deal date in Jan 2020, it had its entitlement share of 49 million 1P reserves for OML 127 & 130. With production share of roughly 13 million boe per year, the  reserves will be depleted in another 3 yrs unless they can prove up the probable 2P reserves.

Shareholders will just sit & watch how the Co attempts to work down its heavy debts. No prospects. Both Eco Atlantic and Africa Energy are speculative pumps. 

The Co's reserves are worth less than two-thirds now with the drop in oil and production cutbacks. In Jan 2021,  only one third of production is hedged. Good luck with Brent at current level vs projection of $80.

Bad stock,




Bullboard Posts