Bullboard - Stock Discussion Forum Africa Oil Corp. T.AOI

Alternate Symbol(s): AOIFF

Energy Oil & Gas E&P

Africa Oil Corp. is a Canadian oil and gas company with producing and development assets in deepwater Nigeria, an interest in the Venus light oil and associated gas discovery, offshore Namibia, and an exploration/appraisal portfolio in west and south of Africa. The Company holds its interests through direct ownership interests in concessions and through its shareholdings in investee companies... see more

TSX:AOI - Post Discussion

Africa Oil Corp. > Positive spin

View:

Post by Suppe11 on Jul 06, 2022 5:17pm

Positive spin

Imho, Prime will make more money in Q3. I'm 99,9% sure, that they pay royalties on spot and not the hedged prices.

165

Comment

Comment by Oregonduck on Jul 07, 2022 2:06am

Without checking, I believe the hedges represent a significant percentage, 60 percent or more of the blended spot and hedged price around $62.00. The 52-week low price for oil was around $63.00 and a high of $130.00. From Feb 28, 2022: "...Prime achieved an average realized oil price of $62.1/bbl in Q4 2021 and an average realized oil price of $59.3/bbl for 2021, in each case ...more

136

Comment

Comment by Suppe11 on Jul 07, 2022 3:46am

I'm not sure, I understand your sentence. As far, as I understand the the case...Prime plans in "cargos" (1m bbl each) and hedge them full in advance. Q2/Q3 cargos are hedged with an average of $78.8. For Q4 1-3 cargos were unhedged. The only wildcard for me...is there always a small unhedged part "just in case leeway" and what about the nigeria differential, which was ...more

147

Comment

Africa Oil Corp.