OANDO ENERGY RESOURCES INC WTS T.OER.W

Oando - Controversial?

[Greenchips]

Re some previous posts, is investing in a Nigerian oil and gas exploration company risky?

Absolutely, so is investing in Venezuela and in Canada some years ago when the NEP was introduced.

 

OER is little known now, an RTO of the Upstream assets of Oando PLC into the old Exile (ERI-TSXV).

Until the Q3 report is released next month, the vast majority of investors will have no idea that the new company will have annual revenues of $150 million plus and cash flow in excess of $50 million with only 105 million shares out.

So, our billboard posters from Nigeria are absolutely correct, it is risky.

But at $1.00 per share, I think that all those dangers have been more than adequately discounted.

And, by the way, the Oando PLC management team who are Nigerian friend really disrespects, have built a $4 billion a year company from nothing in less than 20 years.

if they are just plain lucky, I want to be buying lottery tickets with them.

And, if they are actually good, I will bet with them.

[bobvee15]

I agree it is controversial. It will be interesting how much debt will be carried into the company.  If the EV is less than 2 it might be worth a small gamble. One thing that bothers me is I really don't care for the connection to Stan Bharti who has had a history of taking care of himself instead of share holders and really does not set a good example of maintaining an ethical

[Greenchips]

Approx $60 million in term debt is all that OER has taken on, this has been noted in the info circular but that doc is 325 pages of lawyers gibberish so not many people are aware of that. Once the Q3 report comes out a lot of people will be surprised by the strength of the balance sheet. Cant see Bharti staying, nothing in it for him now, he has no clout with the new group.