Africa Oil Corp. T.AOI

Not enough skin in the game

[Oregonduck]

Yes, Lonegaurdian19 we did cross swords back then. I was in AOI when it was below $1 and got out at around $10. I never bought the stock back. AOI subsequently sold 25 percent of its Kenya oil stake for $450 million and became debt-free, They plowed all their cash - amounted to $1 per share - into the Nigerian oil stake and, as a result, is saddled with massive debts. 

As they like to say, you don't get out of bed for such small stakes held by AOI in other companies. For instance, AOI holds 20% of Africa Energy and 30% of Impact Oil encompassed their 20% of the Venus Namibia discovery. Similarly, in other play such as in SA with Eco. AOI will be faced with huge development costs.

i believe AOI management is all over the park and not able to deliver with all those inter-related tie-ups. 

[Lonegaurdian19]

It will be interesting to see how it all plays out. My main concern is available suitors for Impact and Africa Energy, not sure there are many majors that would bite, maybe PE. With that, the majors might have some leverage. If AOI can hedge up a few cargos > 90 the dividend should be increased or buybacks wouldn't hurt. I still think Eco will merge with AOI in an all stock deal. To me

[firstworld]

No private entity and most state entities spread the risk with smaller stakes in more projects.  Even backwaters like Canada, Iran, LatAM, 3rd world Asia are nearly all 5-20% holdings. In the 21st century, infrequently, state owned mega players will try and retain a majority stake. Of course, legacy players like petro in quasi communist centrall state controlled economy like Canada and