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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

Post by Oregonduckon May 13, 2021 8:49pm
401 Views
Post# 33200837

Quick and Dirty Analysis

Quick and Dirty AnalysisAOI has refinanced the bridge loan owing to its 50% Prime partner. They owed $141 million as of Q1 and gotten a new term loan $130 million with $20 million headroom. The Co pretty much pledged away everything as security for the term facility.

“...The Term Loan was drawn on January 14, 2020 to part fund the acquisition of Prime and has a duration of two years. $141.0 million is outstanding as at March 31, 2021. The Company has provided security in respect of the Term Loan mainly in the form of share pledges, over the shares of Petrovida (which holds 50% of Prime), Eco, Africa Energy and Impact owned by Africa Oil and a charge over the bank accounts into which the Prime dividends are paid.”

The RBL Redetermination is not completed yet. Still owing roughly $625 million. No news is bad news.

Bad bet on hedges and swaps. The Co locked in the oil at $56 (Brent) till the end of year. Big screwup. Should have bought puts and calls futures.

No dividends in Q1. Still saddled with huge debts. Dead stock.





 
 
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