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Re: manuel06 post# 5409

Tuesday, 01/10/2017 10:50:51 AM

Tuesday, January 10, 2017 10:50:51 AM

Post# of 7210
On the other hand there is no certainty...lol

Translated article from Sweden - Results by end of month
AFRICA OIL ERUT EARNINGS BEFORE END OF JANUARY - CEO

STOCKHOLM (AFX) Drilling results of the Kenyan Erut-well is expected before the end of this month.

It says Africa Oil CEO Keith Hill in an interview with the news agency Direkt.

"We should have the results by the end of the month," he says.

Keith Hill plays down the information circulating on social media through a TV clip in which a Kenyan cabinet secretary says it already noted "good results" on Erut-drilling.

"It is too early to say anything, neither one way or the other, because we are still drilling and we have not seen the logs yet. It would be misleading to say something else, then we have to see the logs first. It has happened before we have had encouraging indications, and then we have yet drilled dry in the end, "says Africa Oil chief.

Further drilling on the front is expected appraisal wells Amosing Ngamia in February and in March, while exploration drilling Etete start in April, allows the CEO to understand.

Keith Hill believes that it is probable that the Company 2C reserves will be raised from the current 766 million barrels to 1 billion by the end of the year.

"I think it is likely that we will cross the threshold of 1 billion barrels at the end of 2017," he says.

The first Kenyan oil production is expected to take place in April this year with around 2,000 barrels per day and will be transported by truck helper. It is about the same answer as before.

Investment expenditure, capex for Lundin company in 2017 is estimated at about $ 60 million based on the basic assumption of 4 wells this year, according to the CEO.

Africa Oil has sufficient cash to be self-financing until the full-scale production in 2021, according to Keith Hill. However, he believes that the company is sold before then.

"Although we would like to be independent, I think it can be difficult, because we would be a very attractive acquisition targets by the end of 2017 or the first half of 2018. This is assuming that we are developing as planned and if oil prices rise further," says Keith Hill and believes that the acquisition temperature generally is going up in the oil sector.

Regarding oil prices, he believes that there is only one direction for the price at the moment, and that is up.

"Anything over $ 50 a barrel are good for us, and anything over 70 is really good. I think we have $ 70 by the end of 2017," he says apropos of oil prices.

Regarding the financing of the pipeline from South Lokichar to the port town of Lamu are still different scenarios - from the company to pay its share of 25 percent of the pipeline to nothing at all of the estimated total cost of approximately $ 2.2 billion.

"I still think we can get down to 10-15 percent. It said that there are parties interested in buying into the pipeline."

Keith Hill has not given up hope of a common pipeline expansion between Uganda and Kenya. However, the most likely outcome a single Kenyan pipeline, according to CEO.

Monday's deal in which the French oil giant Total buys into Tullow Oil's Ugandan assets Welcomes Lundin boss:

"It is good for us. It means that the pressure on Tullow's balance sheet is reduced and now will focus more clearly on Kenya from Tullow's side, which favors us."

On the acquisition front, the associated company Energy Africa, as Africa Oil controls a significant part, been quite active recently - and more acquisitions are sure to follow according Lundin boss:

"Do not be surprised if we get some more business soon."

Keith Hill think that the valuation of Africa Oil is ?? and believe that it can at least be doubled in future.

"If you look at our numbers and if people really become aware of our assets, while the price of oil stabilizes, you can share easily double".

http://www.bolagsfakta.se/nyheter/africa-oil-resultat-erut-innan-utgangen-av-januari-vd


Henrik Svensson, +46 8 5191 7924


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