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Africa Oil to Release Third Quarter 2021 Financial Results on November 15, 2021In this article:
VANCOUVER, BC, Nov. 8, 2021 /CNW/ - (TSX: AOI) (Nasdaq-Stockholm: AOI) – Africa Oil Corp. ("Africa Oil", "AOC" or the "Company") will publish its financial and operating results and related management's discussion and analysis for the three months ended September 30, 2021, after Toronto market close on Monday, November 15, 2021. View PDF version
Senior management will hold a conference call to discuss the results on Tuesday, November 16, 2021 at 09:00 (ET) / 15:00 (CET). The conference call may be accessed by dial in or via webcast:
Canada
+1 647 794 1826
North America toll free
800-289-0462
Sweden
+46 (0)8 5033 6573
Sweden toll free
0200 883 447
UK
0800 358 6374
Participant Passcode
202742
Webcast URL
https://event.webcasts.com/starthere.jsp?ei=1512166&tp_key=4a1d4a9163
Please join the event conference 5-10 minutes prior to the start time. A recording of the webcast will be available on the Company's website after the event.
About Africa Oil
Africa Oil Corp. is a Canadian oil and gas company with producing and development assets in deepwater Nigeria; development assets in Kenya; and an exploration/appraisal portfolio in Africa and Guyana. The Company is listed on the Toronto Stock Exchange and on Nasdaq Stockholm under the symbol "AOI".
The information was submitted for publication, through the agency of the contact person set out below on November 8, 2021 at 5:30 p.m. ET
Date: November 17, 2021
Time: 8:30 AM EST
Listen via Internet: https://edge.media-server.com/mmc/p/8ep3x3fm
United States: +1 877-870-9135 (conference ID: 3867903)
International: +44 (0)-2071-928338 (conference ID: 3867903)
Anyone interested in a reverse split; say for every 3 shares you have you keep 1. 3X higher price. Got to reduce the number of shares outstanding and boost retained earnings (shareholder equity). Add a dividend and no complaints here. GLTA Over $2.00 and the institutions start LOOKING.
RECON Africa Energy getting a lot of press and excitement regarding Namibia and seismic discoveries. No cash flow out of Recon but lots of noise.
Slow but sure.. Both Guyana and Kenya promising but sloooow. As I recall AOC has about an 18% interest in ECO Atlantic.
Thu, October 28, 2021, 7:00 PM
In this article:
VANCOUVER, BC, Oct. 29, 2021 /CNW/ - (TSX: AOI) (Nasdaq-Stockholm: AOI) – Africa Oil Corp. ("AOI", "Africa Oil" or "the Company") is pleased to announce that its investee company, Prime Oil and Gas Cooperatief UA ("Prime"), has successfully signed and closed a pre-export finance facility ("PXF Facility"). View PDF version
Prime's PXF Facility is for an initial amount of $150 million. The PXF Facility is arranged by Shell Western Supply and Trading Limited and Africa Finance Corporation ("PXF Lenders") and has a 7-year tenor, extending the duration of Prime's debt profile on very competitive cost terms that are comparable to its RBL facility. The use of proceeds of the PXF Facility is to partly repay the RBL and other general corporate purposes. The PXF Facility can be increased to an amount up to $300 million, subject to the PXF Lenders' approval.
Prime has satisfied all the conditions precedent with the drawdown of the $150 million expected by the end of this month.
Keith Hill, Africa Oil's President and CEO, commented: "Closing of the PXF facility marks an important milestone in Prime's efforts to extend the duration of its debt profile in a cost effective way. It is very encouraging to see the support from two strong lenders, building on Prime's excellent relationships with its RBL lenders. This reflects the quality of Prime's assets and operations."
Africa Oil also reports the following share capital and voting rights update in accordance with the Swedish Financial Instruments Trading Act. As a result of the exercise of 432,000 stock options under the Company's stock option plan, the Company now has 474,361,451 common shares issued and outstanding with voting rights as of October 29, 2021.
Africa Oil Corp. is a Canadian oil and gas company with producing and development assets in deepwater Nigeria; development assets in Kenya; and an exploration/appraisal portfolio in Africa and Guyana. The Company is listed on the Toronto Stock Exchange and on Nasdaq Stockholm under the symbol "AOI".
So agree. Would love to see a substantial divi and buyback. Then remainder to AOC bank account and debt reduction. If DAGUY is right,a payment of $125MM would make that easy. What a fabulous management team.
WOW! Was locked out of Ihub for three weeks. Don't know why... Called Sophia Shane ( Investor Relations) Earnings report due November 15... She did mention dividends. I'm hoping/
Outstanding TD.!! Still unclear as to "partners" for development of the Kenya pipeline and resource facilities for storage and pumping.
TD: Just my opinion, but the responsibility of the pipeline is on the GOK. GOK may be looking for investors. Why would AOC be looking for investors? I don't have a clue.
We need more clarity regarding the following.
"The specific contingencies related to contingent resources presented herein are: the approval of the FDP by the GoK and the FID by the JV Partners, which may be dependent on a successful farm-out process and securing financing for the upstream project and the pipeline infrastructure."
Sorry...Don't understand. What partner and why? AOC does not need a partner. for Kenya. (As I understand it).
AOIFF working on paying down debt, not increasing it. Let someone with deeper pockets pay for the pipeline. Maximize investment in oil extraction schemes and partnerships.
buccaneer1961. That is how I understand it. Why would AOC pay a nickel for the cost of the pipeline. That is responsibility of the GOK. We should know before the end of he year as to the status of the pipeline. AOC has a lot going for it but I doubt they will seek any more ownership/partnership in Kenya, given the complications partially created by the GOK. ALL IMO of course.
There is no way AOC will pay any amount for the pipeline. This is the responsibility of the GOK. Who will that be...idk. If that is what you are getting at?
Oil to be recovered over the next 12-20 years. Final Investment decision soon as well as field development plan. I believe we get 20% of all oil that passes thru the pipeline to Lamu. This to me is frosting on the cake.
KEY to Kenya!
Over the past year, Africa Oil and its JV Partners (Tullow Oil and Total Energies) have completed the redesign of the Project Oil Kenya to ensure it is technically, commercially and environmentally robust. A higher oil production plateau of 120,000 barrels of oil per day is now planned with expected gross oil recovery of 585 million barrels of oil ("MMbbl") over the life of the field.
Why not sell covered calls first. At least get some premium and divis while you wait.
Kenya looking much better!!!
News Release Issued: Sep 15, 2021 (2:20am EDT)
Africa Oil Provides an Update for Project Oil Kenya Including a Higher Plateau Production Rate and an Independent Resources Evaluation
VANCOUVER, BC, Sept. 15, 2021 /CNW/ - (TSX: AOI) (Nasdaq-Stockholm: AOI) – Africa Oil Corp. ("Africa Oil", "AOC" or the "Company") is pleased to provide an update for its Kenya development project incorporating Blocks 10BB and 13T ("Project Oil Kenya"). PDF Version
Over the past year, Africa Oil and its JV Partners (Tullow Oil and Total Energies) have completed the redesign of the Project Oil Kenya to ensure it is technically, commercially and environmentally robust. A higher oil production plateau of 120,000 barrels of oil per day is now planned with expected gross oil recovery of 585 million barrels of oil ("MMbbl") over the life of the field1. This resource position has been audited by external independent auditor, Gaffney, Cline & Associates ("GaffneyCline"). Africa Oil's best (2C) development pending contingent resource on a net working interest basis, derived from GaffneyCline's report is 93 MMbbl2. The estimated unrisked3 post-tax net present value, using a 10% discount rate ("NPV10"), of $577 million is attributable to Africa Oil's net 2C development pending contingent resource base.
Africa Oil and its JV Partners have presented a draft Field Development Plan ("FDP") to the Government of Kenya ("GoK") ahead of the plan to submit a finalised FDP by the end of 2021, in line with licence extension requirements provided by the GoK in December 2020. Africa Oil and its JV Partners continue to work collaboratively with the GoK on land and water access and on the necessary commercial agreement and are waiting on the final approval of the Environmental and Social Impact Assessment ("ESIA") from the regulatory authorities.
At the same time Africa Oil and its JV Partners are actively seeking strategic partners for the project. Based on the revised plan, Africa Oil believes that this project is an attractive commercial prospect for investors looking to access the East Africa oil and gas sector in both the upstream and midstream. It is intended that a strategic partner will be secured ahead of a Final Investment Decision ("FID").
Africa Oil President and CEO, Keith Hill, commented on the statement of resources: "Together with our JV partners we have made significant progress in redesigning and optimizing Project Oil Kenya. Compared to the previous field development plan, we have a more economically robust project, which I am confident is more attractive to potential new partners. We will continue to work with our JV partners and the government of Kenya towards the final investment decision and I am pleased that our interests are fully aligned on what is a strategically significant project for Kenya."
Further Information
The key changes to the development concept have been driven by:
Incorporating the production data from the Early Oil Pilot Scheme ("EOPS") where 450,000 bbls was produced from Amosing and Ngamia fields. These fields account for approximately 54% of the resource distribution, leading to greater confidence in achieving the higher end of the resource distribution range.
Initially drilling at the crest of the field in the highest quality reservoirs prior to First Oil and optimizing the number of wells to improve pressure support to recover larger resources from the reservoir and to rapidly build up the initial production plateau.
Adding an additional discovered field, Ekales, in the first phase of production as the work has technically matured and the field is geographically located between the Twiga and Amosing fields. As such, the first phase will be made up of the Ngamia, Ekales, Amosing and Twiga ("NEAT") fields.
Optimising the overall development cost with a facility design capacity of 130,000 bopd and an increase to the pipeline size from 18" to 20" to handle the increased flow rates.
Total gross capex to First Oil is expected to be c.$3.4 billion, comprised of c.$2.0 billion for the upstream and c.$1.4 billion for the pipeline. This capex estimate is based on bids and FEED updates from contractors. Capex to First Oil has increased from the previous project design, reflecting the increase in resources targeted in the first phase and the associated increase in wells and infrastructure to achieve this. Over the life of the field, the revised project has reduced the overall unit cost to c.$22/bbl (previously c.$31/bbl). The combination of the above leads to an optimal project that delivers more economic barrels within the license period and greater flexibility to incrementally add additional fields into production without significant infrastructure modifications.
Africa Oil and its JV Partners have also taken the opportunity of this review to improve the environmental and social aspects of the project. Carbon emissions will be limited through a combination of heat conservation, use of associated gas for power and reinjection of excess gas into the reservoir. Further, there are opportunities to use the Kenyan power grid that is powered by renewables sources and options to offset remaining emissions. As per the previous development plan, the pipeline from Turkana to Lamu will be buried and the Turkwell Dam will supply water for the project and to local communities. This project would also be Kenya's first oil & gas development and would represent a stable, long-term source of income for the GoK.
Simultaneously to the development, an exploration and appraisal plan will be put in place to ensure the remaining discoveries are efficiently developed. This will extend and sustain initial plateau rates whilst keeping costs low by leveraging the rigs used for development drilling. Future phases will also focus on additional exploration potential within the 10BB/13T licenses and bringing the 10BA license acreage into production.
Notes:
1
100% of the volumes estimated to be recoverable from the project over the life of the field, in the event that development goes ahead.
2
Contingent resources net to AOC are AOC's net working interest fraction of gross resources, assuming GoK will exercise its back-in rights, leaving AOC with a 20% share in Block 10BB and a 19.375% share in Block 13T when a development license is awarded.
3
The volumes and NPV10 reported here are "unrisked" in the sense that no adjustment has been made for the risk that the field/project may not be developed in the form envisaged or not at all.
4
All dollar amounts in this press release are U.S. Dollars unless otherwise indicated.
About Africa Oil
Africa Oil Corp. is a Canadian oil and gas company with producing and development assets in deepwater Nigeria; development assets in Kenya; and an exploration/appraisal portfolio in Africa and Guyana. The Company is listed on the Toronto Stock Exchange and on Nasdaq Stockholm under the symbol "AOI".
Additional Information
This information is information that Africa Oil is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2:20 a.m. EDT on September 15, 2021.
Advisory Regarding Oil and Gas Information
The contingent resources and related NPV10 estimate presented in this press release are derived from a report prepared by GaffneyCline for Africa Oil dated June 2021 and are effective as at 31st December 2020. In the preparation of its report, GaffneyCline has used definitions contained within the Canadian Oil and Gas Evaluation Handbook ("COGEH") and National Instrument ("NI") 51-101 Standards of Disclosure for Oil and Gas Activities.
GaffneyCline's report was prepared using Brent oil price forecast of ($/bbl): 2021 – 51.38; 2022 – 54.0; 2023 – 57.0; 2024 – 60.0; 2025 onwards – escalation rate of 2.0% per annum. There is no assurance that the forecast prices will be attained and variances could be material. The estimates of crude oil, natural gas liquids and natural gas resources provided herein are estimates only and there is no guarantee that the estimated resources will be recovered. Actual crude oil, natural gas and natural gas liquids resources may be greater than or less than the estimates provided herein.
Contingent resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations by application of development projects, but which are not currently considered to be commercially recoverable owing to one or more contingencies. Contingent resources may include, for example, projects for which there are currently no viable markets, where commercial recovery is dependent on technology under development, where evaluation of the accumulation is insufficient to clearly assess commerciality, where the development plan is not yet approved, or where regulatory or social issues may exist. The specific contingencies related to contingent resources presented herein are: the approval of the FDP by the GoK and the FID by the JV Partners, which may be dependent on a successful farm-out process and securing financing for the upstream project and the pipeline infrastructure. Contingent resources are further categorized in accordance with the level of certainty associated with the estimates and may be sub-classified based on project maturity and/or characterized by the economic status.
It must be appreciate that the contingent resources reported herein are unrisked in terms of economic uncertainty and commerciality. There is no certainty that it will be commercially viable to produce any portion of the contingent resources.
The expected gross oil recovery of 585 MMbbl in this press release have been made by Tullow Oil Plc in accordance with their disclosure obligations. The Company understands such estimates have been prepared in accordance with the Society of Petroleum Engineers Petroleum Resources Management System (SPE-PRMS). While the Company takes no responsibility whatsoever for the resource estimates of Tullow Oil Plc, the Company believes the SPE-PRMS uses terminology and categories in a manner that is consistent with the terminology and categories in the COGE Handbook, has a scientific basis and requires the estimates of volume and value of resources to be based on reasonable assumptions. The effective date of the resource estimates of Tullow Oil Plc is December 31, 2020 and such estimates were prepared by GaffneyCline.
KH is paying debt down very fast. What remains to be seen is $ toward buybacks or divis. Next Divi payment from Prime will reveal what's behind door number 3.
Apple earnings Due November 4, 2021: Annualized Consensus $5.59 PE 29. For the quarter est. $1.23. Expect a surprise.
From Investors Place"
Here’s Why Apple Stock Is Due for a Huge 2021 Breakout
AAPL stock is a long-term winner with enormous catalysts on the horizon
By Luke Lango, InvestorPlace Senior Investment Analyst Nov 3, 2020, 6:35 pm EDT
As the largest company in the world, Apple (NASDAQ:AAPL) isn’t the sort of company that you’d expect to have a big breakout in 2021. After all, it’s already so big and so huge that it takes a lot to move the needle on AAPL stock.
But make no mistake. That’s exactly what will happen in 2021.
AAPL stock will have a huge breakout higher because everything at Apple — from its core hardware business to its ancillary but burgeoning software business — will fire on all cylinders over the next 12 months. As it does, Apple will report of a series of record-breaking blowout earnings report throughout 2021, the sum of which will spark a big rally in AAPL stock.
The implication?
Buy AAPL stock today and hold for a big 2021 surge.
Here’s a deeper look.
The Hardware Business Will Boom in 2021
Apple’s core hardware business will boom in 2021, paced by the company’s biggest iPhone launch in a decade.
Specifically, Apple just announced its brand-new iPhone 12, otherwise known for its most distinguishing feature from previous models as the “5G iPhone”. That’s right. This is the first iPhone which will allow consumers to harness the breakthrough speed and power of 5G wireless connectivity in their smartphones, and to that end, easily projects as one of the best-selling iPhone models, ever, especially since not many consumers have upgraded their iPhones in recent years.
Pent-up demand plus a significant technological upgrade is a recipe for enormous iPhone 12 sales in 2021. Indeed, that’s already happening. First day iPhone 12 preorders measured 2 million units, up more than 100% from last year.
Meanwhile, the PC market is currently booming thanks to work-form-home and learn-from-home trends, and as hybrid work/education environments increasingly become the norm in 2021, this PC boom will persist and Apple will sell a lot of Mac computers and iPads to information workers and students.
Apple also recently launched a new, low-price Apple Watch SE that will bring many first-time smartwatch buyers into the market — you know, people who have always been interested in smartwatches but didn’t want to spend $400 on one.
Plus, new AirPod models are coming in early 2021, and considering how much of a hit the first iteration of AirPods were, it’s plausible to think this new generation of AirPods will be a big hit.
All in all, the outlook for Apple’s hardware business in 2021 is exceptionally robust. Of course, that’s great news for AAPL stock.
Software Services Will Boom, Too
Apple’s hardware business won’t be alone in 2021. The company’s software business will boom next year, too.
The new Apple One bundle is a perfect way for the company to create an economic, all-in-one subscription service package that should see strong uptake over the next few quarters and dramatically grow Apple’s DTC footprint.
Apple TV+ is a big winner of that bundle, because it will entice current Apple Music users to buy the bundle which includes Apple Music and Apple TV+, leading to a surge in TV+ viewers. That creates a positive growth flywheel, because the more people watch Apple TV+ shows, the more people talk about them, and the more other people want to watch them (which should, of course, lead to more sign-ups).
Apple Fitness+ is a great new service built for a world where there’s a ton of demand of high-quality, at-home workout videos and platforms. Early adoption of this platform should be very strong in late 2020 and early 2021. Apple Music TV is another great new service which should see demand tick higher in 2021 as consumers stuck at home spend more and more time watching digital content.
An under-the-radar development here is also the emergence of social commerce. Facebook (NASDAQ:FB) and other social media platforms are aggressively building out in-app commerce capabilities to create a new era of social commerce wherein consumers buy-and-sell stuff in social media apps. As the software platform which hosts all these social media apps, Apple will take a commission off all these sales and transactions. UHHH?????
Therefore, as social commerce increasingly becomes a “thing” in 2021, Apple stands to make a lot of high-margin revenue through transaction commissions.
All in all, much like the hardware business, Apple’s software business projects to have a blockbuster 2021. Because this business carries higher margins than the hardware business, the software business firing on all cylinders is much more important when it comes to AAPL stock.
Bottom Line on AAPL Stock
Apple stock is a long-term winner. I don’t need to tell you that. But it’s worth noting that this company’s hardware and software businesses are both going to fire on all cylinders in 2021 — a dynamic which implies that the sky is the limit for AAPL stock over the next 12 months.
CASH ON HAND.
AAPL: $60B +++
EPIC: -$12M.
I'm really worried about AAPL.... sure.
Thanks douginil. I Think Stockhouse comments are too conservative. Imagine what happens when KH announces a stock buyback and possibly dividends after receiving next "dividend" from Prime. We get anything over $40,000,000.00 as our 50% interest, and this "cash cow" must appreciate very quickly. Even a 20 cent annual divi right now would equal a 15% +- yield. Completely unheard of for a "penny" stock. A 5% yield would reflect a stock price of $4.00.
Africa Oil Dividend from POGBV speculation date.
Seventh dividend date June 29, 2021
Eight dividend date August 1, 2021
Ninth dividend date (October 1,2,3,4???)
Whatever it is, it's gonna be a huge deal for me. It will be a guide to the next quarter yield for buybacks and our own dividends.
About AOC. Additional info. Thank to TT and douginil for last two updates on AOC.
The Company holds its interests through direct ownership interests in concessions and through its shareholdings in investee companies including Prime Oil & Gas Coöperatief U.A.("Prime"), Africa Energy Corp., Eco (Atlantic) Oil & Gas Ltd. and Impact Oil and Gas Ltd.
June 27, 2021·7 min read
In this article:
Strategic Positioning Investment into JHI Canje Block, offshore Guyana, and Imminent Drilling Programme
Near-term, low risk, exploration drilling catalysts with significant upside
TORONTO, ON / ACCESSWIRE / June 28, 2021 / Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO, TSX-V: EOG), an oil and gas exploration company with licences in the proven oil province of Guyana and the highly prospective basins of Namibia, is pleased to announce it has closed a transaction with JHI Associates Inc. ('JHI'), a private company incorporated in Ontario and headquartered in Toronto, Canada, for Eco to acquire up to a 10% interest in JHI (the 'Transaction') and to appoint Keith Hill, a non-executive Director of Eco, to the JHI Board. The Transaction provides Eco with immediate exposure to a current active drilling program in the Canje Block offshore Guyana. The Canje Block is operated by ExxonMobil and is held by Working Interests partners Esso Exploration & Production Guyana Limited (35%), with Total E&P Guyana B.V. (35%), JHI Associates (BVI) Inc. (17.5%) and Mid-Atlantic Oil & Gas Inc. (12.5%).
JHI is a Guyana pure-play deepwater exploration company founded in 2011. In 2014, JHI teamed up with Guyana-based Mid-Atlantic Oil & Gas Inc. ('MOGI') which was awarded the Canje Block in 2015. In 2016, ExxonMobil joined the Canje Block as Operator, and in 2018 TotalEnergies farmed into the Block. Five years of extensive technical and seismic data analysis led to the Canje partners identifying multiple drillable prospects and successfully applying for a multi-well drilling permit. The 2021 multi-well exploration programme on the Canje Block seeks to test the extension of the prolific hydrocarbon system which has resulted in over 9 billion barrels of oil equivalent of recoverable resources being discovered in the adjacent Stabroek Block since 2015.
This transaction will increase Eco Atlantic's presence in the Guyana-Suriname basin to include a three well drilling programme, with the first two firm wells on the Canje Block drilling in 2021 and at least one on the Orinduik Block, subject to partner approval. The Jabillo-1 well is currently being drilled on the Canje Block utilizing the Stena Carron drillship with results expected in July. The Sapote-1 well is scheduled to be drilled later this year in Q3 by the Stena DrillMax in the eastern portion of the Canje Block, which Eco will also have exposure to through its now shareholding in JHI.
Highlights of the Transaction
Exploration: near-term exposure to low risk, high impact two-well drilling programme in Canje Block offshore Guyana led by ExxonMobil.
Funded: from existing cash and an expected private placement of shares to Africa Oil and Charlestown Energy, leaving Eco with strong cash reserves for future exploration wells on Orinduik.
Board representation: Eco Atlantic Board member Keith Hill will join the JHI Board as Eco's nominee with immediate effect.
Future Collaboration: the transaction allows both Eco and JHI the opportunity for future cooperation in their shared focus exploring for hydrocarbons on the highly prospective Guyana-Suriname basin.
Terms of the Transaction
Eco has subscribed for 5,000,000 new common shares in JHI at a price of US$2.0 per share, representing 6.4% of JHI's enlarged share capital (the 'JHI Investment'), and has been issued a warrant to subscribe for a further 9,155,471 new common shares in JHI at an exercise price of US$2.0 per share for a period of eighteen months (the 'JHI Warrant'). If the JHI Warrant is exercised in full, Eco will hold an interest, ceteris paribus , of 10% in JHI on a fully diluted basis.
As at 31 December 2020, JHI had net assets of approximately US$46.3 million and recorded a net loss of approximately US$8.28 million.
The two well drilling program currently underway on the Canje Block offers Eco near-term, low-risk exploration drilling catalysts with significant upside. JHI is carried on the costs for the drilling of the first well, Jabillo-1 and would also be carried for an offsetting appraisal well in the case of a discovery on Jabillo-1. The Canje Block partners have also committed to drill the Sapote-1 well later this year in Q3 2021.
Led by ExxonMobil as Operator and technical lead, the wells offer an opportunity to participate in an anticipated extension of the Stabroek Block Oil Discovery trend building on the over 9 billion BOE barrels equivalent offshore Guyana already discovered.
Eco Atlantic has funded the JHI Investment through its own cash reserves, and intends to complete an associated private placement with its strategic partner Africa Oil Corp. ('Africa Oil') and with Charlestown Energy Partners LLC ('Charlestown Energy'), a Private Equity firm based in New York, USA (the 'Proposed Subscription'), to raise additional funds of approximately 6.1m CAD (US$4.9m). Pursuant to the Proposed Subscription, Africa Oil intends to subscribe for 5,945,913 new common shares in Eco at a price of 0.41 CAD per new common share (the 'Subscription Price') and will be granted the same number of warrants to acquire common shares at the Subscription Price with a two-year duration, and Charlestown Energy intends to subscribe for 9,000,000 new common shares at the Subscription Price and will be issued the same number of warrants on equivalent terms. The Proposed Subscription will be conditional on approval by the TSX Venture Exchange and admission of the Subscription Shares to trading on TSX and on AIM.
Gil Holzman, Co-Founder and Chief Executive Officer of Eco Atlantic, commented:
'After a period of thorough technical analysis of the Canje block, by both our team at Eco and our strategic partners at Africa Oil Corp we are delighted to advise the market on this exciting transaction, and to be back drilling with results expected imminently.
'The carried Jabillo-1 well is underway and is expected to reach target in the coming few weeks, providing our shareholders with high impact near term catalysts.
'I want to thank the teams at Eco, Africa Oil and JHI for their hard work and collaboration over the past months in bringing this deal to execution.
'While we eagerly anticipate resuming drilling activity on our Orinduik block next year, pending partner approvals, and we have made sure to preserve sufficient funding for that, we are very excited that we now have two imminent Guyana wells in our portfolio as well as additional multiple prospects inventory on the Canje Block. Since 2014, Eco has strongly focused on the hydrocarbon potential offshore Guyana, and this strategic deal with JHI marks the beginning of a wider presence and potential increased future collaboration in the basin.'
Keith Hill, Non-Executive Director of Eco Atlantic and President and CEO of Africa Oil, further commented:
'We are very pleased to have Eco team up with the two most knowledgeable operating partners in the basin and believe the Canje Block has the potential to hold resources comparable to the world class Stabroek Block which is undoubtedly the most successful exploration campaign in recent history. Combining this with the holdings in the Orinduik Block, Eco is well positioned to be part of the historic oil development in Offshore Guyana.'
**ENDS**
Agree with the sentiment. Satellite phone is major A-Game changer. No cell towers need apply. Who will follow suit?
8/29/21
OMG!!
Editor OilPrice.com
Fri, August 27, 2021, 12:00 PM
The price of WTI crude oil could be headed for a jump of between 20 percent and 50 percent, judging from a bullish breakout pattern that suggests a major rally could be coming for an asset, and that has occurred just three times for crude this century, an equity strategist told CNBC this week.
“Crude oil has seen what’s called a golden cross on its weekly chart,” Matt Maley, Equity Strategist at Miller Tabak, told CNBC’s “Trading Nation” program.
The so-called golden cross appears on a chart when the short-term moving average of an asset crosses above its long-term moving average. The gold cross chart pattern points to a potential for a major rally.
“That’s only happened three times since the beginning of this century and each of those three times has been followed by a very strong further rally in crude oil, anywhere from 20%-50%,” Maley told CNBC.
According to the strategist, the energy sector looks good if the market holds up and continues to rally. The energy sector has outperformed the overall market by a large margin since last October, even with the pullback since July, Maley also said. If the market holds, energy stocks could do really well in the fourth quarter, the strategist added.
Despite lingering concerns about the Delta variant, major investment banks continue to be bullish on oil, although not all are as bullish as Goldman Sachs, for example.
Goldman’s analysts kept their forecast for Brent Crude prices at $80 a barrel at the end of this year, although they expect the Delta variant surge to have a transitory drag on oil demand over the next two months.
“Looking beyond the Delta headwind, we expect the demand recovery to continue alongside rising vaccination rates,” Goldman Sachs said in a note in the middle of August.
By Charles Kennedy for Oilprice.com
From Barrons:
Energy
Street Notes
Oil Prices Are Rallying. Here’s What Comes Next.
By Avi Salzman
Aug. 24, 2021 11:22 am ET
Oil’s slump ended on Monday, and the rebound continued for a second day Tuesday as the global benchmark price rose above $70 a barrel again.
Some positive news about countries containing Covid-19, and increasing confidence in the supply-demand picture appear to be keeping prices aloft. Oil stocks were rising, too, though most are still down sharply over the past month. Exxon Mobil (ticker: XOM) rose 0.8%. Whiting Petroleum (WLL), a smaller company that tends to move more with oil prices, was up 1.4%, but is off 14% over the past month.
Hopes for $100 oil this year are probably gone, but there are signs of momentum behind the rebound.
Oil had fallen for seven trading days in a row through Friday, the longest losing streak since 2018 for Brent crude, the international benchmark, and since 2019 for West Texas Intermediate, the U.S. benchmark. Brent lost 8.8% during the streak, and WTI dropped 10%.
On Monday, oil regained much of the value it lost, with Brent rising 5.5% and WTI up 5.6%. That rally extended on Tuesday, as Brent futures rose 2.4%, to $70.38, and WTI rose 2.2%.
For much of the past year, oil has moved on two factors: the spread of Covid-19 and the decisions of OPEC and its allies about whether to increase or decrease production. In January, OPEC decided to keep production low, and in July announced that it would slowly restore production to the market over the next year. The group is not set to meet until next month, so there has been a lull in guidance since last month’s meeting.
In the past two weeks, Covid-19 has continued to spread in several countries, and appears to be depressing gasoline and jet fuel demand. That helped drive the selloff in crude. But data out of China shows that that country was able to stop the spread of Covid through more aggressive lockdown measures, and travel is picking up.
Jeffrey Currie, the head of commodities research at Goldman Sachs, argued in a note published Monday that the selloff was overdone in part because supply has stayed low. In general, Currie believes that producers are investing too little in new projects today to catch up to future growth, and that means prices are likely to rise.
He expects the Delta variant “will prove to be a transient event, and that U.S. producers will retain their newfound discipline, as the drivers of our bullish view shift from cyclical demand impulses to the structural binding constraints of underinvestment in supply that were only accelerated by Covid-19.”
Currie’s fourth quarter oil price estimate is $80 a barrel, among the highest on Wall Street.
One important level to watch is whether WTI exceeds $70, “a break of which could be very bullish,” according to Oanda analyst Craig Erlam. “There is still room to add to the promising start to the week.”
Thank you oil. Nice rally.
You're welcome douginil. Just listened to the webcast. This company is a monster in the works. Fabulous presentation by KH. Very strong possibility of both buybacks and dividends by end of year or first quarter.
Here is the article I promised.
Africa Oil Corporation Announces Quality Earnings
Aug. 16, 2021 5:15 AM ETAfrica Oil Corp.
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Summary
Africa Oil Corporation has a well distributed portfolio of assets uniquely positioned to consistently earn cash flow from high oil prices.
The company has a net debt position that can be paid off in 3-4 months at the corporate level, and Prime Oil & Gas' position is also improving.
Going forward, we expect the moment we've been consistently discussing, where Africa Oil Corporation earns enough to start driving significant shareholder rewards to come true.
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Golden pipes going to oil refinery
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Africa Oil Corporation (OTCMKTS: OTCPK:AOIFF) is a more than $600 million company that makes it one of the largest up and coming oil companies. The company has recently announced incredibly strong earnings and is moving well towards the path where it can redirect its massive cash flow towards shareholder returns. As we'll see throughout this article, the company is a valuable investment at current prices.
Africa Oil Corporation Highlights
Africa Oil Corporation has numerous highlights worth paying attention to for shareholders.
Africa Oil Corporation Highlights - Africa Oil Corporation Investor Presentation
Africa Oil Corporation earned $38.4 million in net income for the quarter, with an end of quarter cash balance of $35.1. The company's annualized net income is just over $150 million, incredibly strong for a $600 million company. The company has indicated a plan to move towards shareholder rewards with this incredibly strong cash flow.
The company received a dividend of $37.5 million from Prime during the quarter and a further $37.5 million in July. The company announced the closing of its corporate debt facility with $160 million committed balancing out its asset portfolio. The company has repaid its term loan and still has a respectable cash palace with net debt of just $56 million.
Africa Oil Corporation Financial Position
Overall, as Africa Oil Corporation continues to aggressively pay down its debt, the company is, in our view, positioned to drive strong shareholder returns.
Africa Oil Corporation Financial Position - Africa Oil Corporation Investor Presentation
Africa Oil Corporation as we discussed above, generated strong profits. The company has maintained a strong cash position and is continuing to get strong dividends from Prime Oil & Gas. Since the acquisition was completed for $520 million roughly 18 months ago, Africa Oil has received $275 million worth of dividends.
The company's net debt is incredibly low, the company has a net debt position of just $56 million. For perspective, that amounts to roughly 3-4 months of dividends from Prime Oil & Gas for the company to hit a net debt position of 0. We expect, going into next year this strong financial position will lead to the start of share buybacks or dividends at current prices.
Africa Oil Corporation Prime Oil & Gas Financials
Delving deeper into the company's most important producing asset is Prime Oil & Gas.
Prime Oil & Gas Financials - Africa Oil Investor Presentation
Africa Oil Corporation's most exciting asset (apologies for the giant text block) continues to be their 50% stake in Prime Oil & Gas. With OPEC+ restrictions lifting, even with the potential impact on oil and gas prices, Prime Oil & Gas is one of the company's that stands to benefit. It's economic entitlement production continues to be almost 31 thousand barrels/day.
The way Prime Oil & Gas works is through sales volumes and cargoes that the company receives each quarter. These are normally to the tune of several million barrels/day. The company has sold the remainder of its 2021 cargo at $58/barrel meaning it won't benefit as much, however, in 2022 it's only hedged 21% of production at $67/barrel giving more upside.
With current prices just over $70/barrel, and the cash flow essential to the company paying down debt, hedging for another year could help the company guarantee shareholder returns to some extent (i.e. 50-60% hedged).
Across the board capital expenditures and operating costs have remained incredibly low ($5.7 million for the first half and ~$6.2/barrel lifted). Another interesting development is discussions with Equinor over tract participation agreements by the companies. So far they've received a $305 million security deposit and depending on how things pan out here it could be a strong cash position.
The last thing we want to note is Prime Oil & Gas' strong financial position. The company has a $557 million net debt position relative to Africa Oil Corporation's interested and a $292.8 million cash position, meaning a $260 million net debt position. That's drastically reduced from the debt position at acquisition (although it does count the security deposit).
It does mean however, that much more of Prime Oil & Gas' income has the potential to pass through to Africa Oil Corporation dramatically increasing the company's shareholder return potential. The fact that, at $58/barrel hedges, Prime Oil's cash flow from operating activities is more than $600 million, or Africa Oil Corporation's market cap shows the potential here.
Africa Oil Corporation Operational Outlook
For the remainder of the year, we expect Africa Oil Corporation's operations to continue to perform incredibly well.
The company is working to solidify gas payments and add stability there. The company is looking to develop new wells in Kenya and still has access to its shareholding companies which have respectable assets. The company has a 30.9% stake in Impact Oil and Gas along with a 31.2% stake in Africa Energy. These stakes are worth $10s of millions.
This highlights the company's overall portfolio stake and diversification. The company has incredibly strong growth potential from Prime Oil & Gas. It'll continue generate massive cash flow with minimal amounts of remaining debt. The company, if it chooses to, could finish paying off the entirety of its debt before the end of 2022.
The company also has long-term potential from Kenya. It also has stakes in other companies that have the potential to generate multi-bagger rewards worth billions. All of this together, makes Africa Oil Corporation a valuable long-term investment.
Africa Oil Corporation Shareholder Returns
Africa Oil, through the distributed financial strength of its assets, has the ability to generate substantial FCF in the upcoming years.
On a normal year, the company receives roughly 5 dividends from Prime Oil & Gas worth $170 million. The company has just $56 million of net debt, or roughly 4 months of cash flow. After that, the company will have an almost 30% yield to generate shareholder returns through buybacks and dividends. That doesn't include the cash that the company is retaining.
That cash will enable the company to pay down debt, though once it's paid, it should result in additional cash passing through to Africa Oil Corporation. We expect Africa Oil Corporation to continue seeing its share price grow aggressively going forward.
Africa Oil Corporation Risk
Africa Oil Corporation's risk is much less execution based than other companies because the company already has a portfolio of valuable and growing oil producing assets. Rather, the company's largest risk is quite simple, it's oil prices. The company is incredibly profitable at current oil prices; however, the story would change if prices were to fall 50%.
While that's the same for all oil companies, and Africa Oil Corporation's financial position is stronger than normal, it's still a risk worth paying attention to for all industry investors.
Conclusion
Africa Oil Corporation has an impressive portfolio of assets with a unique ability to continue long-term growth and generate impressive shareholder returns. The company has spent the ~18 months since the acquisition covering the accrued debt. However, now that it's paid the majority of that down, it can move into shareholder return mode.
We expect Africa Oil Corporation to generate massive shareholder rewards over the subsequent years. Going into year-end 2021, we expect the company to generate massive shareholder returns. We project significant double-digit shareholder rewards, which makes Africa Oil Corporation a valuable long-term investment.
If I knew that, you would kneel before me.
Seeking Alpha article: I will post at later date. However, they state that AOC earned $38.4 million for the quarter. Annualized, That's equivalent of EPS of $.32 per share. A modest PE ratio of 30 gives a per share value of $9.00
The Lundin Mining corporation ($8.98 PS) pays a dividend of .29cents a share. with a EPS of $0.84. I think AOC can approach that number easily in 2022. Why? 1) buybacks, 2) OPEC members increasing production, 3) Reduction of debt, 4) Accelerated E&P and partnering. All of which result in increase in EPS. It might be a stretch of course, but we are looking at $8.00 per share next year if KH can pull this off. That is a 3.5% yield for Lundin Mining which is capitalized with 736 million shares.
Additionally, Lundin also offers a variable performance dividend on
an annual basis in conjunction with its standard dividend. A good model for KH to follow. The payout ratio to cover its dividend is only 36%. Easily covered by earnings.
Agree Douginil.... Lots of nice looking catalysts. Was hoping to add more at $1.15.. Too late now.
So "douginil" What is your opinion on Africa Oils financial picture going forward. Cash flow looks formidable. Producing roughly 28,500 BPD and additional cash from sale of natural gas, We could get a dividend of close to $50,000,000 in the third quarter???
Tomorrow will make or break me. AOC, Kinda an Arab curse...LOL
And hopefully a heads up on future dividends...
Very weird.. By word of mouth alone, this thing should be $5,6,7 bucks. We will know on Thursday what is on the back burner.
LOL... I hope not just yet. I'd like to have a round 100,000 shares first. 17,000 shares short of goal. I have a feeling however, that news on the 12th is gonna blow up the price.
Well done and said "douginil". Total number owned now by myself 83,000. Plan on adding more when AAPL stats a serious move up.
Gentlemen??? Start your engines. Charts are very impressive. Volume creeping up.