Africa Oil Corp (AOIFF)

[redinvest]

From Stockhouse : interesting read, gas is OK in Kenya.

" E:Lots of new info from Keith Hill today (July 3)
Great find, thanks Wallstreet1112. For anyone interested here is the translated article.

Hopefully we will see the updated resource report before the end of this month. GLTA.

Africa Oil's recent update of drilling results received mixed reviews by the market and analysts. Especially the fact that Sala deposit in Kenya were found to contain gas, rather than oil, got negative attention.

Exploration Company CEO Keith Hill is not disappointed.

"Oil is normally better than gas, but in this particular case, I think that the gas can be very profitable," he says in an interview with news agency Direkt.

Kenya suffers from a lack of electricity and the country's government has pressed hard for new power projects to become a reality. It's one of the reasons that the time from discovery of the deposit to a positive cash flow will be shorter than if the oil discovered.

"We will meet with government representatives in Nairobi next week. The advance notice we have received indicates that we should be able to get permission and sign contracts quickly, "says Keith Hill.

Negotiations will now begin on prices and terms, while studies on the environmental and social impacts should be performed.

"That part of the process should take about six months. If the groundwork is done right takes construction work not more than one year. We should be able to be in production within 18 to 24 months, "said Africa Oil chief.

A longer term project is the 150-mil-long pipeline for oil planned to go through Kenya and Uganda, a project with costs of 2-2.5 billion dollars, equivalent to 16 billion. The planning goes forward.

"The authorities in Kenya and Uganda have now largely coordinated their interests and both want to have this pipeline. On the financing side, institutions like the World Bank and the IMF, but also large conglomerates in Asia, showing interest, "said Keith Hill.

The most optimistic analysts have talked about a completion in 2017, while Africa Oil has been on the 2018 and aiming for 2019.

"The most realistic is perhaps sometime in 2018 or 2019., I think 2017 would be very difficult to reach," says Keith Hill.

A more closely related reference point for Africa Oil's next resource update, which the company is currently working on. Preliminary data have been obtained, but more work is information from a couple of the biggest fields.

"It's important data and I have high expectations," said Keith Hill, who expects to publish the final report in the second half of July.

In the slightly longer term, Africa Oil one or more partners to develop their discoveries.

Another option is that the entire company is bought by a bigger player. As recently as April, a pair of such corporate deals announced, when Glencore acquired Caracal Energy for the equivalent of more than 9 billion investment fund Al Mirqab from Qatar offered even a little more for Heritage Oil.

"It shows that the interest in mid-sized exploration companies is large. I get calls about acquisitions or partnerships every week, but during the past quarter, the intensity increased, "says Keith Hill.

He continues:

"We expect to be involved in any form of industry business recently in late 2015".

The Company's cash is calculated with current plans to last until the second quarter of next year. Exactly how long will depend on the rate at which drilling is performed.

"After that, some form of bridge financing needed, but it's nothing I'm worried about. There are many options, "said CEO: n

Africa Oil traded since the turn of the Stockholm Stock Exchange's Large Cap list, where the largest companies listed. Now wait as road shows on both sides of the Atlantic in September.

"It is important for us to be among the big companies. It provides more institutional clients to invest in us and we hope for some new owners, both in Sweden and elsewhere in Europe, "says Keith Hill.

Read more at http://www.stockhouse.com/companies/bullboard/v.aoi/africa-oil-corp#aI8jEKhrSLocpIL8.99";

Red