Africa Oil Corp (AOIFF)

[Scarbender307]

I'm bullish still and sticking to this no matter what wifey says.


Additionally: A commenter said:


puffnstuff
Today, 2:52 PM
Investing Group
Comments (387)
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The biggest risk imho is nationalization, and it doesn’t seem likely. The price of oil could fall to $40, and the stock would still make 15-20% returns per year. They pull oil out of the ground for $7/barrel and pay 35% taxes and royalties. The infill drilling on OML 127 should keep production rising next year, though the company hasn’t guided for this yet.

OML 128(Equinor’s 20.2% stake in Agbami) was sold last year. Prime has the option sometime next year of preempting that sale. This is effectively a cost free call on the price of oil. The company made statements in the Q3 call that make it sound like the RBL will automatically increase with the purchase of this additional stake in Agbami. I expect that this will occur and increase production by 10k barrels/day next year.

Preowei will produce on a 5 year tax holiday once it’s developed and tied in.

Venus should produce at $20/barrel according to Total employees on linked in.

We bought 6.25% of 3B/4B for $5M. It’s not that valuable. ECO Atlantic was talking about 3 majors being interested 6 months ago in their CEO’s presentation on YouTube. EG31 looks like it has a much higher chance of being developed.

The company seems to want to sit on $200M of cash as a baseline(makes sense to me as they are an opportunistic investment company). This seems to be a major point of friction with a lot of investors.