Africa Oil Corp. T.AOI

Free Option on Venus, the only material public exposure

[Thecamel]

Very interesting article in the link below.  I have fact checked and the numbers.  The key points I see are as follows:

- At current oil prices (unhedged after April '22), cash flow from Prime will be ~US$750mm; AOI's market cap is currently! US$825mm.... show me another company that trades just over 1x cash flow!  No value attributed to it's investment in AFE, Impact, Eco or Kenya.

- Venus value (see link below) - the field is estimated to hold 3 billion barrels.  IHS values 1 billion barrels with a $70 oil price at US$3.2 billion. At $90/bbl oil price (current), that number increase to $5.3 billion.  AOI holds an effective interest of 6.2% (Impact working interest 20% * 31% shareholding in Impact); so at current oil prices, the value of Venus to AOI is US$330mm, or C$0.88/share ($5.3B * 6.2% * 1.27 fx)/475m shares).  If discovered reserves are 3 billion as indicated, the value would be 3 times that.....

- Venus was significantly derisked by the recent Graff discovery!

https://seekingalpha.com/article/4484339-africa-oil-corporation-generate-shareholder-returns
https://ihsmarkit.com/research-analysis/what-if-venus-comes-in.html

[bazilfawlty]

thecamel cheers...many shareholders have been waiting years upon years for AOI to have such a future outlook. The valuation still sukks but  there are enough milestones ahead and events around us  to cast interest . So undervalued and limitted risk!  good times ahead

[Rsoleblocka]

I hear ya, I have been holding so long and i should have sold many years back, but i didn't and actually added on drops. I am hopeful that our optimism is rewarded! Cheers