Africa Oil Corp (AOIFF)

[dat_51or]

Crunching a few (ballpark) numbers.

So, AOIFF is near $2/share. We all agree that it's way under valued. Here are a few thoughts.

We have 300 million barrels proven with many more prospective. That oil is worth $4 today (guess) and when the pipeline is built in 2019, it will be worth $10 (keith hill said that a few years ago, if I recall). The market is valuing the proven oil at just $2 barrell and no value for the company's other assets, blocks, etc.

On top of that we have funding ($350 million last summer) to carry out the near term drilling campaign of 4-5 appraisal wells that will increase the number of proven barrels AND 4...that's 4!! new basin opener wells. None of this enterprise/exploration value is priced into the share price at $2 if you assign $2/barrel value to the proven. This crazy low price just doesn't make sense.

AOI is in a real strong position to move up. All's it takes is success with the drill bit and time. Here's hoping for one or two new basin successes and a quick recovery of share price....then KH will go out and secure the next round of financing, or bring in a JV partner...

The low share price is like a punch in the gut...but the game is still going very strong. Gotta be optimistic.... maybe buy some more???

dat