RE:RE:JUST SOLD MY FIRST AOI IN 12 YEARS FOR MORE CPKCFrom what they said and from the wording that they have to dance around for disclosure law reasons, essentially the strategy they are focussing on is much larger than what AFE and EOG. The same way they are calling Prime dividends "immaterial", these investments are immaterial. Nothing was said specifically about Africa Energy. EOG he went on a rant about we have a great relationship but we are getting a divorse - basically they are too small for them to focus on and this "divorce" divorce is in the works. We don't know what that means in terms of will they divest or just hold etc. Impact they are obviously buying into. They said they don't intend to get the full 8% but want to be above 1/3 ownership for control reasons.
The whole thing about the standby credit facility was that they were prepared to adance $100M+ to keep up with the orange basin costs with Total. They also want "two years of cash on hand" which is as vague as it sounds. With the Farm down agreements, it alleviated the cash need hence the share buyback. The reason for keeping it was all about keeping their bankers happy. Key relationships etc. In my mind it's more of if we keep giving them money, we might save on a % or two of interest in the future which pays for itself. Theoretically.