Africa Oil Corp (AOIFF)

[zravji]

TD Securities Inc updated report

Following is an excerpt from the March 17, 2016 report from TD:

TD Investment Conclusion
Although this well result has de-risked exploration prospectivity
of Block 12A, based on what we consider to be near-term priorities, mainly development work on its South Lokichar project, we are inclined to keep our chance of success factor for Kerio Valley Basin unchanged until further
technical updates.

We view Africa Oil as an attractive investment opportunity. Our high conviction in this name is further supported by strengthening of the balance sheet following the completion of the Maersk deal.

We re-iterate Africa Oil as one of three of our International E&P top picks. We maintain our SPECULATIVE BUY rating with an unchanged target price of C$3.50.

Therefore, with the net cash accounting for nearly 80% of the market capitalization, we see limited share price downside and we strongly recommend investors to buy ahead of the contingent resource report expected to be published in the next couple of months.

GLTA.