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

Alternate Symbol(s):  AOIFF

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. > Some Lundin Company go 20 to 40 times the money
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Post by 12groundpounder on Oct 13, 2022 11:32am

Some Lundin Company go 20 to 40 times the money

What do you think the company will trade for after they get $1 billion for their Kenyan assets . what about the 300 million from The Nigerian assets. Now that the hedges are gone what are we looking at in terms of cash flow 500 million or 700 million a year. Don't forget we get six dollars to $10 premium on top of Brent. what do you know if it's worth it at 6% interest probably $2.50 extra a share. then we own 39% of impact 19% of Echo Atlantic oil And 27% of African energy.. The latest well drilling and will be finished in 20 days could be worth $1 billion. Our interest is 27% or close to 300 million in additional value. When oil stocks trade at six times cash flow we will be trading at $10. within the year I bet you we traded $10 . this is loaded with so many different high-quality pieces but each one of them could be worth 250 a share $2.50 a share. The hedge funds that were short oil Arnel massively lining up with the contracts on the Buy Side. Oil is a huge industry that right now has been throttled to death by the politicians and the firemen to live as though we have only green energy now. Their timing has been completely off kilter because these people aren't business people you don't have a clue. everyone is investing in the oil companies now. and the death of the industry is predicted way too soon. You can now buy the oils for a quarter of the price you should have to pay. That means we're going to make 400% . But with one of the best Lundin companies We may make three times that
Comment by toptiger on Oct 13, 2022 11:48am
very good summary from someone with a very similar view by the sounds of it. yours sincerely, "rookie investor"
Comment by Suppe11 on Oct 13, 2022 12:09pm
I would take it hahaha But time for a reality check...for the Kenyan assets, at best...they'll get a free carry for some Wi. The bonny light premium is $3-5 atm. The $300m are only $150m...before tax. The indirect interest in the Gazania well is around 16%. Nontheless, I'm so nice, to sell you my Aoi for just $7 now ;-)
Comment by 12groundpounder on Oct 14, 2022 9:07am
In referring to the two Indian companies negotiating with Tullow it's referred to as a $3.4 billion project. African Oil Owns 25% half of what Tullow has. The 870 million US is the value of 25% converted at C$1.38 for every American it works out to exactly $1.2 billion before fees. That would jack up the price of African oil by probably 60 Percent
Comment by Suppe11 on Oct 14, 2022 9:26am
We discussed that already up and down. Your math is correct. Sadly, there is a pipeline needed (+more infrastructure). Most probably, Aoi will get a (close to) free carry to production (or the money for the carry) for a reduction of WI. No net cash + waiting for a few years until production + construction risk + country risk. In the case of a total exit (doubtful) the Npv10 of Aois interest...if I ...more  
Comment by firstworld on Oct 14, 2022 10:29am
No one is investing a dime anywhere in Africa onshore O&G one look at Nigeria losing 95% of it's onshore oil says it all. Most of it is corruption with military, all minsiters and various mafia getting a cut.
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