Africa Oil Corp. T.AOI

Impact's stake in the Venus 1x up for sale....

[Ebenizer3]

https://financialpost.com/pmn/business-pmn/impact-oil-gas-prepares-to-sell-stake-in-namibian-offshore-block-sources

[toptiger]

should be a lot higher than this quoted figure, but doesnt include venus west i assume ?

[DAGUY]

Wonder how much AOI will put in for that 100M they need for appraisal well(s).  20% for 500M - 1B could be a bargain... Depdning on size and cost to get to production. 

[Ferryboy]

Is the $100m required for Appraisal drilling just for Impact's 20% share?  Or $100m for Venus overall?  Seems very high to be just Imapact's share.  I thought a well was about $50m to drill although offshore in those waters could be higher .. someone correct me if I am wrong Another question:  Could AOI still stay in as part of Venus with its "effective" 6

[toptiger]

original figure i saw was $300 million for all venus appraisals, with impact requiring 60 mill so not sure where the 100 mill came from, maybe venus west or their SA stuff ?

[Ferryboy]

Thanks for the info.. I don't know too much about Impact but I suspect they are asset (prospect) rich and cash poor and will struggle to fund their portion of the appraisal wells .. maybe an opportunity for AOI to increase its stake to from 6% to say 10% and let Impact sell the other 10%.  Just thinking out aloud here as I have no idea if this is how it works in the oil patch

[toptiger]

we could increase to say 10% but doubt they bwill do that, probably happy with their 6.2% and yes impact have 2 wealthy backers (us and a SA guy) and also have some very very good other assets, a great company to be invested in. the sale price if its that crazy low might include free carry for impact, otherwise far too low

[DAGUY]

To raise the funds we will probably buy some of the shares and would increase our ownership of Impact. It may not get to 10% but could come close depending on how much we support them. 

[toptiger]

would make sense not only for venus but their other stuff too