Africa Oil Corp. T.AOI

AFE

[Ferryboy]

I picked up another 25,000 AFE in the last couple of days ..24c. Did not cost me a lot.  A gamble?  For sure but I think AFE is way underpriced.  Largely due to lack of news I suspect

I am basing this purchase pretty much on Keith Hill's comments on the Q3 call that he "was really excited about this project" .  Although he did not eloborate.  They have only drilled in 2 of the 5 major prospects in the fairway and they have a hungry customer right on their doorstep

Hoping Total is out with some news of negociations with the SA govt soon

[toptiger]

that has got to be a good decision, i have a few and might add, though i keep doing this....i think the price can only be this low based on impatience and the time frames involved, though should be absolute minimum a double and most likely a triple from here

[Ferryboy]

Yeah that is kind of my thinking too ..somewhere in the 50 - 75 cents range Not sure how quickly they will be able to monetize it though unless they have been trying to line up a buyer

[toptiger]

they are not quite over a barrel, but limited in some ways because of their 10% holding, they cant afford the cash to go into production unless they borrow from aoi and the rest of the lundin group, but have no idea of the numbers involved but would be pretty big they can only hope for a payout, but luckily they do have lundin backing, so not helpless

[RHertig]

What sucks is Total stopping the exploration drilling which was free to us. Most sales will be mostly for the found resources. Which means three potential huge targets go away for pennies. I cross my fingers they can get contingency wording in the sale for exploration finds.

[Ferryboy]

An ex-oil guy posted a while back (on the AFE board I think) explaining that there are exploration rights and development rights.  So any sale would be restricted to the development rights to Brulpadda and Luiperd and would not include any rights to other prospects.  Make sense to me ..why would you just throw in those other prospects unless specifically negociated? I am not an oil guy

[toptiger]

are you forgetting gazania ?

[Ferryboy]

No.  I was just talking about trying to monetize on 11B/12B with Total.  Gazania is completely separate

[RHertig]

If the can separate them I would be happy. If they tell us they will I would buy a lot more.