Africa Oil Corp. T.AOI

venus deal: from 6 to 3% reduced but carried till production

[hikari]

https://www.paidpromotionalmessages.co.uk/companies/news/1037952/africa-oil-boosted-as-total-ups-stake-in-namibian-oil-discovery-1037952.html

[Suppe11]

Looks my thesis was spot on in May (and before): "To me, the main point is...when was the last time a small explorer got 1b+ on some holes in the ground ? Long, long ago. Imho...the intention of the Impact mm is clear...get the exploration costs back, get some small Wi (or royalty) with a carry to production and that's it...saves the overhead for decades and they can go on. Beside

[Malpeque2]

What is "Impact mm".   Your abbreviation is not clear to me.    What makes you think Impact will not return the investment capital back to AOI?    You know the carried costs,  the way I read the announcement,  have to be returned to Total BEFORE Impact would get any cash flow from production.  That's going to be a long way out, heh! 

[Suppe11]

Mm=management. The management of Impact don't want to unwind the company, but stay and watch the whole thing for the next 20 yesrs. Easy job, no operational business, not even collect cash, just burn down 100m, perfect. Any meaningful cashflow from this thing for Aoi is 20-30 years away, if they don't sell Impact.

[argaiv]

20 to 30 years seems like an exaggeration to me as far as cash flow for AOI.

[firstworld]

How long does it take to extract 4 B bbl?  Regardless  once its producing for couple years its time to sell the minority stakes at huge profit of just pay 90% income out as divs. By this time the global majority economies 7B people will be in full swing and hungry for as much oil as they can get!!  

[Lonegaurdian19]

First oil by 2030 funded by a carry/loan. Weird rules of recouping investment by country. So likely 9.5% of around 12 billion then 8 years from first revenue (not first profit)

[Malpeque2]

Lonegaurdian19:   Youve been drinking the EOG "koolaid" in this Guyana prospect.   If it had real potential you don't think Exxon or CVX would have topped the $1M bid for the majority ownership of the Block?    Please............ Regarding Namibia,   maybe 5 years to first oil is about right.   And then another 3-5 to pay back the

[firstworld]

No disclosure  on the loan repayment % of production revenue

[Malpeque2]

I would figure that ALL of the Production working interest profit percent would go towards the Repayment of the Capital Spend in any one quarter until the Capital Up Front Spend is Paid Back from Impact to Total. 

[firstworld]

In this case it seems the only value of the deal to AOI is dumping the mobilization liability,  plus reserves value since they won't see a dime in cash flow for 10-20 yr. SH wont see a dime ever on this deal though BoD will get many millions in bonuses haha.