Africa Oil Corp. T.AOI

July 25, 2017 last time it was over 2.00 a share

[DAGUY]

Not the closing price but was over that day... Nice to see if coming back, still undervalued. 3Q numbers should be good. In the black again. I think if my calculations are right, Prime has to pay another 163M this year after the September payment. That and the Sept payment out of the 500M in the bank. Could see another 75M by the end of the year easily.. Maybe an announcment on a dividend starting next year coming out soon?

[firstworld]

I recall seeing something in one of the disclosures that they also have a one off $38 M or so coming anytime, maybe Q3.

[Ferryboy]

The $500 cash on hand is after payment of the Sept RBL and dividend payments.  I expect Q4 cashflow to cover the majority of the remaining RBL repayment of $163m still leaving approx.  $500 cash on hand at y/e before any further distributions.  So I think there might be the potential for a dividend of $150 - 200m before y/e.  I suspect they might use this as a basis to buy the

[toptiger]

ferryboy, can you expand on the numbers above, i assume you mean we have the following: as of now, paid 75mill in septemeber, remaining debt 500 mill in prime (250 net to aoi) so this q4 remaining 163 mill will be distributable and still leave 500 mill? my questions are~: 1. the 163 will be 81.5 net to aoi, or the whole 163 ? 2. this is from the disputed nigerian field %  settlement ? 3.

[DAGUY]

Remain 500Mill is what primes has for cash. There is a little over 1B in debt.  THey have to repay another 163M by the end of the year for the RBL loan.  I think what he means is that 163M is probably going to be what they can make this quarter so they will still have the 500M in cash.  That is net 250M to AOI but they have to keep some around for different reasons (taxes, load

[Ferryboy]

Thanks Daguy .. you explained it well.  Debt at y/e after the $163 payment will be $867 ...$433 net to AOI.  They should be able to take care of that in 3 year quite comfortable and still pay large didvends.  The $38 payment relates to gas sales to the Nigerian govt from 2017 on .. and payment/settlement was only made recently ... I think the details are in the Q2 release notes I