Hi everyone. I started this thread as FDC - but the copmpany recently changed its name to First Africa Oil (FAO). For completeness (nay, posterity) I've copied the original thread here - only three posts, two by me. So, as you can see I haven't given up trying to let you know about this very interesting prospect in W. Africa on and off shore.

Recently there has been a good deal of very heavy buying and selling since the reverse takeover on 7th Feb by Canadian Minerals comapny Energem's oil interests of FAO, in particular the following RNS on 15th Feb:-

The Company was notified on 14 February 2005 by RAB Capital ("RAB") that, following an
acquisition of 144,930,638 ordinary shares of 0.1p each ("Ordinary Shares") on 8
February 2005, RAB currently holds a total of 144,930,638 Ordinary Shares
representing 9.76 per cent. of the Company's issued Ordinary Share capital.

Now RAB has significant positions in FOGL and FGML and I believe many other similar oils/minerals co's and is no fool when it comes to taking large chunks of highly speculative early ventures.

I've cut out a lot of this as now out of date, leaving just the first post and now, by special request from SWW, here is a weblink and a chart.

Good luck.

Stock Dog

http://www.firstafricaoil.com/index.asp



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i also have a small interest in this co and have been following for some time now....only time will tell whether my interest it is worth while....i think the co is very speculative but has been having pretty big trades for some time

Hi janesteve,

Well, they say investing in oils and mines is like pouring your money into a hole in the ground. In this case they haven't even found the hole yet. So, speculative is a good word here. But I believe in the geology of W. Africa, the rationale behind Energem's decision to establish a fundraising structure ahead of time (they will need lots more cash to develop to full production, I'm sure) and the trading that has been going on since the EGM.

With the oil price at $50 and Peak Oil predicted for July 2006, there will be more and more interest in minority fields where previously the cost of extraction may have been uneconomic. Recent comments from Saudi Arabia's oil minister, also support the longer term price support for oil at this level.

I'm going to try to pretend I don't have this share in my portfolio and look at it again in 2 years time.

SD

Amities / Excuse my dearth of extensive knowledge of this company; but i have only very recently started researching it. Now as it happens oil barons ExronMobil, Chevron/Texaco TotalElf , BP, Shell and a vast plethora of global giants with massive warchests budget to sink over $30 billion on exploration licenses and related exploration costs into the West African countries inc. the Gabon . Both midcaps and smallcaps alike abound in this region of Africa: and appear to be enjoying a more than a decent degree of success . And although l agree this acorn called FAO is somewhat speculative i cannot see it being anymore of a gamble as was Mauritania reg. Tullow not so long ago. Or their deep coastal waters with Woodside. Hardmans ,Sterling Fusion and Premier Oil . Or come to that of Cairn in lndia and Pakistan when the projects were announced. . ln a world facing oil delineation, temporary BUT continual interuption of supply ( Middle East, Norway , Nigeria, Venizuala, the Mexican gulf and the Russias -Yukos. and corresponding increased demand and a price tag of almost $50 p/b it makes it commercially viable to look for oil in those countries with the prerequsite geology . The Gabon appears such a place . Global supply is tight; yet potential production running at 97%. .Moreover Stockdog is not incorrect reg. RAB Cap who by anyones standards are no fools in finding solid mining outfits with decent management .TMC being in my mind a glaring noteable exception.-Even then the Project model was solid - Characters involved a little nefarious.,,, But in percentage terms Rab C.have proven quite successful in this sector of the market .Also some very intereting trades being made recently. And for such a microcap it has a tight spread which is unusual in what are called "speculative " stock A good foundation for anyone to commence thier research . lf you believe in the accepted theory of oil formation oil under axionic conditions then i am sure you will agree the next chapter in "Big " oil opens in the Falklands the russias .inc the Caspian and Black seas and Africa . . ..This a new one to me; and one i hope that proves worthy of all our future respective researches ,,,,bonne chance / sois sages ,,,a'bientot ...@+ J

Such approbation from TFC gives me comfort that I have not made a completely dumb move. I now have a nice worldwide spread of oils - Falklands, Columbia, W. Africa (marine and mainland) GoM, bit in East USSR (whatever it's called now). I feel the hatches are battened for oil at $100, as I am also with gold interests when the FTSE caves this year as the US$continues to fall.

On this last issue, anyone buying GBS - interesting pure physical gold loan note backed by real bars hidden in London. Each share buys you 1/10 troy ounce. Storage insurance cost 0.25% per annum which is periodically deconsolidated from your holding instead of being paid in cash.

SD

Stockdog:
Glad to see someone is keeping an eye on the big picture. Some of us worry that the pumpkin and mice will turn up to spoil the party.

Well, strange day. 4 unknown trades, 6 buys (some of 150k) and 38 sells (some of 500k/1m) and the price rose 5% at the end of the day. Serious manoeuvering, but serious future interest too, by the look of things.

Anyone know what's occurring?

I feel a bit like Shrek and Fiona's faces when they spin round on that potion machine in Shrek 2.

SD

Few trades, but some serious selling amongst which 3 X 500k and 2 X 1m today so far - and still the price ticks up.

So MMs must be happy to take stock onto their books from the original placees at this price. They obviously expect future profits when the price rises. So do I.

BOD

SD

Amities / SD; l strongly agree.Although some of the bigger trades to which you make reference in your last mail transpired to be holders rolling thier stock it is certainly worth noting , and manifestly bloody obvious , that after todays ( Monday ) trading what with a tad shy of l million sells and a mere single buy of 38,000 ( me ..lol) that mms in maintaining both the "bid"/"offer" price-but esp. the offer price -are without doubt accumulating stock. Of that simple fact i am SURE.Absolutely. ..On first glance volume seems only remarkable in that it is relatively low for a for a smallcap such as FAO which was only today ( monday ) re-listed after the amalgamation of the acquisitions of a number of what seem potentially lucrative oil and gas ventures from Energem. And as such a vast amount of buying and selling and wiley manouverings was only to be expected prior to todays relisting. { especially in light of the pressures for a re-rating which to my mind it patently deserves. }.. But when you couple this fact with the recent ratio of sells outstripping/outweighing buys in excess of 40 /1 ( as witnessed by trading on the 9/3/2005 which saw in excess of 5 million sells and a mere 60 odd thousand buys} and yet the s/p rose on that particular day by 5% and in the corresponding period by 10%, l think you will agree that mms know a little snippet that as yet is not in the public domain But we can rest assured the 20 million shares mms have absorbed whilst INCREASING the s/p will eventually be sold on at a vast profit .Of that i have no doubt. With Rab Cap having in excess of 104 million shares { amost 10% of issued stock ), and Trustes for the Royal bank of Scotland on behalf of Merill Lynch controlling a furthur 102 745,813 shares ( 6.9% ) and Cantor Fitzgerald taking a 21,580,000 stake ( 1,4% ) and with the Man group expressing clear interest FAO is not without friends in the city. lt could even be argued that FAO with a current m/c of 163 million have a strong case for a re-rating and automatic entry to the FTSE 350 which would automatically invite tracker funds . .... As a footnote it may well be worth noting that the tiny oil rich state of Equatorial New Guinea in whose maritime waters EVERY global player has huge interests, { and even bigger investment is planned by Exxon Mobile ,,BP ,,Total ,Chevron ect ect }, lies immediately North of the Gabon. The rotary count is phenomenol and the list of licenses held by the mega players in the oil arena is like a catalogue of "Whos who" in the oil world ;and such is the scale of both PROVEN and Probable recent oil finds in this area that it was recently the victim of an aborted coup led by S/ African mercanaries and which implicated such high profile figures as Mark Thatcher .Such men as this are content to remain anonomous but such is, and can be and indeed proved to the lure of riches beyond such a kings ransom and thus a mans dreams . .And why ? Oil ,of course. Black gold indeed. Such resource wars and scenarios are the agenda of the very near future. ln fact we already know they have began - but that is a different story. But in a country of a mere 417,000 inhabitants, which to put things in context, is but a third of the population of Essex , Equatotial new guinea with no airport seemed an easy target.Quite interestingly the airports which serve this tiny country are Libreville in the Gabon itself, or Yaounde in the Cameroon. Of even more interest is that upon glancing though my Alexanders gas and connections the licenses of both Chevron and Total hug the Gabons maritime boundary.< En brevite'> The two nations share a common border and hence in parts not disimilar geologies exist ; and working on the undisputed hypothesis that the best place to look for hydrocarbons is in the shade of a a proven field the prerequisite host to oil is a factor already in place . ..My only shock is that Gabon has not already had the majors clamouring for a piece of the cake . So one is left but to ponder the very inevitability of oil being struck in the atlantic seaboard of the Gabon.. . So all things being equal-Like yourself SD i have made a percentage play.Nothing serious .,l have a couple of opening gambits of 100,000 @ 10.9p made on the 8th and 38,000 made today @ 11.50...l am confident that among the plethora of licenses brought under one umbrella by FAO many will prove juste as lucrative as those for the holders of licenses operating within the territorial waters of ENG have done . .,,Bonne chance ,,,a'bientot ...@+ J ...

Morning TFC - glad to know I'm in good company. Am contemplating re-balancing my own holding upwards with top-sliced profits from FOGL. Half in FAO the otehr half in SEY (must coem good sometime. The fact the MM's have kept SEY trading within such a narrown range gives me confidence that they are quite content to wait for major lift off nearer to production in 2006, so softly, softly catchee monkey as the early bird says to mix a metophor)
SD

Amities / lf you wish to attain a discounted position in SEY whilst enjoying exposure to DES try casting an eye over WTE who own 77.5 million SEY shares in consideration for their Fusion assets in the Gulf and 5.5 million DES looking in north Falklands as opposed to FOGL who are looking over the South .ln addition they also have a 15% stake in the "ormonde project" which has been recently been approved by the DTI and licensed to a company called Eclipse but is financed by American giants - General Electric;and via wind turbines attatched to the National grid is expected to light and heat every home in the counties of both Cumbria and Lancs by 2010. .l freely admit i have a 75,000 holding .But as i say it is a discounted way into a number of lucrative projects inc SEY and DES whose holding alone equate to WTE 's s/p;Furthermore with only 13 million shares in issue it s/p tends to exxagerate the movements of either SEY or DES . a/b ,,,,,,bonne chance @+ J

TFC - thanks, very intriguing idea. I shall investigate.

SD

Very high volume in excess of 20 million changing hands today.So obviously a little birdie knows something what with with two buys of seven million and another in excess of four milion. .PMO have an interest in the Gabon with Sasoil as operator in the Dussafo . ln addition in a operational review PMO said several prospects on the acreage had been identified and were in a stage of development. Fusion sold other shallow offshore projects to PMO not so long ago in te Gabon.Upon investigation it seems a few Europeon oil midcaps have interest in this area ,,,,,@+ J

Very high volume in excess of 20 million changing hands today.So obviously a little birdie knows something what with with two buys of seven million and another in excess of four milion. .PMO have an interest in the Gabon with Sasoil as operator in the Dussafo . ln addition in a operational review PMO said several prospects on the acreage had been identified and were in a stage of development. Fusion sold other shallow offshore projects to PMO not so long ago in te Gabon.Upon investigation it seems a few Europeon oil midcaps have interest in this area ,,,,,@+ J

TFC - on Digital Look there were two trades of 4m - one protected sell and one buy; a 7.15m sell and a 10m protected sell - are you saying these were all buys, in fact??

I took it as quite positive that thhe MMs were inviting such volume of stock onto their books whilst the SP remained constant. I guess if they are all buys then this is positive too, but why didn't the SP rise?

Not sure how to read the runes on this one. There seem to be be very few active in this SP, but I imagine they are specialistsw and therefore knowledgeable. Are we jsut seeing a re-positioning amongst institutions or a genuine market movement do you think?

See WTE took a nice bounce 15% 2 days after your mention. Soon break out above the last resistance high. I'm not in - no spare funds, sadly, but it is a good geared play as you say.

SD

As always, have enjoyed reading the posts on this BB and now taking an interest in FAO; but can anyone answer a couple of queries.
1. With so much potential in this co. why were there massive sales of share options by directors in mid-October.
2. FAO came up on my radar as a recovery stock at the same time as CLY and looking at the charts it appears they both hitched a ride on the same roller coaster in July-August 04. I can find no connection whatever between the cos. yet the similarity in the charts is remarkable. Any suggestions?
sd.

FAO is a completely different company since its suspension on 21st December at 7.87. The sells by directors in October werre to do with exiting from the old Hansard business which had failed to turn itself into a public relations company when one of the key directors promise of new funds failed to turn up on the day. It stopped doing what it was trying to do and with 6m on the BS it was a dead shell looking for a new oyster to make pearls with.

It's new life as an oil explorer effectively started at the EGM on 7th Feb when a reverse takeover of Energem oil interests in W. Africa was approved. Nothing before that date is now relevant to the future prospects of this company.

The constant high volume of large trades whilst the price stays around the 10.5 mark suggests repositioning by institutions with long-term intentions, amongst whom RAB Capital who are very active in early stage exploration companies.

I have no idea when the first prospect for drilling will actually be identified and resources committed to it, but it will probably need fresh capital via a placing or two at that stage. Read the RNS of 14th January for full details.

Until then I have it as a sleeper rsting on the feather bed of high oil prices.

SD

StK9: Many thanks for the info and I like the analogy to the feather bed, at least I did until I read again your original post to find that we might be sharing it with a lion.
sd.

Well, having made your feather bed you'll now have to lion it!

Caught this intriguining little RNS before breakfast today and the trading has been pure blue bar one with a 15% rise since opening time.


FirstAfrica Oil PLC
31 March 2005


TSX: ENM AIM: FAO For immediate release



ENERGEM RESOURCES INC. AND FIRSTAFRICA OIL PLC -



JOINT PRESS RELEASE - SIGNIFICANT TRANSACTION NEGOTIATIONS



CAUTIONARY ANNOUNCEMENT



Vancouver, Canada and London, United Kingdom, March 31st, 2005 - Energem
Resources Inc (TSX:ENM) ("Energem") and its controlled subsidiary FirstAfrica
Oil plc (AIM: FAO)("FirstAfrica") (jointly "the Companies") advise that they are
jointly engaged in negotiations with an unrelated third party of substance (the
"Purchaser") relating to the potential acquisition of a significant interest in
the upstream oil assets of the Companies by the Purchaser and the joint future
exploration and development of the assets and pursuit of other up-stream oil
assets in Africa.



If successfully concluded, this will have a material effect upon both Companies.



The negotiations are not likely to result in any disposal of or fresh issuance
of shares in either of the Companies.



Shareholders in both Energem and FirstAfrica are therefore advised to exercise
caution in dealing in their shares until further information is provided.


I can't imagine they mean cautionary in the sense it's bad for the company, so I expect further rises in the SP when all is revealed. I'm well tucked in there at tenpence halfpenny, so moved into profit this morning, long may it last.

SD

im in too today, profit already... Looking good, cant quite believe RNS its saying theres profit to be made in this company...

I have waded in too - there is lots of oil in west Africa !!!!
Come on lets make some money...

There are a lot of majors and mini-majors with interests there - Shell - Premiere etc I believe.

Geologically it's basically an extension onshore of Chinguetti/SEY etc. Looking at the constant large trades in FAO since it relisted on 8th Feb, whilst the price stayed pretty constant, there has to be a lot bubbling away under the surface which will emerge soon it now looks like.

SD

think it might be sey they are refering too

The plot thickens! Very interesting, if it is SEY, but they normally get the exploration rights first and then sell them on to someone with the capital to develop them. They do not usually buy into a situation where they need to spend money on exploration do they?

This morning's announcement. Note Alan Levison's antecedents with Westmount, Fusion and Sterling.

Now the business starts. It's going to be a fun ride with a good deal of fund-raising along the way as they bring their various optioned prospects into play. First, I imagine, they will develop a revenue stream from their Gabon prospect. I wonder who they will partner with (see yesterday's announcement) for both capital and technical facilities.

A great long-term prospect for everyone who's in. Hold on tight and don't let go.

SD


RNS Number:4585K
FirstAfrica Oil PLC
01 April 2005


Immediate Release 1 April 2005



FirstAfrica Oil announces the appointment of Senior Vice President - Exploration
and Production




London, April 1st, 2005 - FirstAfrica Oil plc (AIM:FAO) ("First Africa" or "the
Company") is pleased to announce the appointment of Alan Levison as Senior Vice
President - Exploration and Production.


Mr Levison (53) is a geologist with 30 years experience in international oil and
gas exploration and production. The major part of his career has been with
Chevron (5 years) and British Gas ("BG") (16 years). He held senior management
roles at BG, including Exploration Manager-Africa & Americas, (where he managed
BG's assets in Egypt, Tunisia, Gabon, Angola and Nigeria), Exploration and
Production Manager-CIS & Central Europe and Director of Research and
Development. In recent years he has served as International Manager with
PetroSA, the national oil company of South Africa where he managed PetroSA's
expansion into Gabon, Egypt and Algeria. Most recently he has advised several
companies including Westmount Energy and has served as non-executive director
with Fusion Oil and Gas plc and Sterling Energy plc.


Mr Levison holds a M.Sc. in Petroleum Geology from Imperial College, London and
a B.Sc.(Hons) in Geology from Leicester University.



Commenting on his appointment, Mike Jones, Chief Executive Officer of
FirstAfrica, said:



"Alan has considerable knowledge in the oil and gas industry, particularly in
West Africa. His appointment will further strengthen the FirstAfrica management
team and provide valuable leadership focus in our objective in building a
significant pure pan-African upstream oil and gas business".



For further information please contact:


FirstAfrica Oil plc London Tel: 020 7908 6300
Mike Jones (Chief Executive Officer) South Africa Tel: +27 11 372 3312

Buchanan Communications
Bobby Morse/Ben Willey Tel: 020 7466 5000


FirstAfrica confirms that no other details are required to be disclosed under
paragraph f of Schedule 2 of the AIM Rules with respect to Mr Levison.


Background information:



FirstAfrica Oil was created in January 2005 when cash shell Financial
Development Corp plc acquired GGPC Gabon, the upstream oil and gas subsidiary of
Toronto Stock Exchange-listed energy and mining Energem Resources Inc, in a
reverse takeover.



FirstAfrica has a diversified asset base that includes the offshore EOV Permit
Area and the onshore Epaemeno exploration block, both in Gabon. The Company also
holds options to exploration acreage in Chad and Congo Brazzaville.



Energem, which was keen to bring forces to its upstream assets in order to
unlock value, acquired the rights to the 105 sq km shallow water EOV permit area
in February 2004. The acreage includes a discovery some six miles offshore on
the southern limit of the proven and prolific Ogooue Delta oil province. The
Company also holds rights to the Epaemeno exploration block, which covers 1,339
sq km to the southwest of the town of Lamberene. The acreage used includes
various prospects identified by El Gabon, the previous license holder.



In the last quarter of 2004, Energem signed up to explore a large tranche of
acreage that was relinquished by ExxonMobil in land-locked Chad. The Chari-Ouest
concession area lies in the centre of the Doba Basin adjacent to the US oil
giant's production complex, which includes access to an export pipeline to the
coast. firstAfrica has an option to acquire the Chad project from Energem. The
Congo Option relates to the rights held by Energem to the shallow water Marine
XI Block in Congo Brazzaville.


This information is provided by RNS
The company news service from the London Stock Exchange
END

HAS ANYONE NOTICED THE RNS RELEASED AT 6PM ALLOTMENT OF SHARES FOR DIRECTORS AND STAFF....THE STAFF SOME OF WHICH THE OPTION RE AT 14P AND 18P IS THIS POSITIVE

I did notice and thought the same as you, I guess. At least someone thinks they are heading in that direction sometime over the next 10 years - I personally hope a little sooner!

There is still more news to come on the major deal referred to in the 31st March RNS. Should follow soon.

SD

We're definitely on the move today - up 11.5% - now nicely off the floor with this one. Someone knows (or hopes for) something. Hope the deal is worth waiting for - how long before they announce it?

SD

Up we go another 14.5% today - I'm 40% ahead since getting in in Feb with more in Mar. Still looking forward to the real announcement to come.

SD

Im with you SD got in a tip from a friend, looking forward to more details regarding previous RNS....

also in sd, is it CHAD,NEXT NEWS

Back down to breakeven.

Any views on the sad decline over the last weeks?

Is it general market malaise, or something someone knows but isn't saying?

sd

stockie, whats going on with this lately?

Are you still in?

I found it yesterday and have interest as Alan Levison is a Director who used to be with Fusion Oil & Gas and Sterling Energy, (probably involved in the Mauritanian Government deal).

Your views on if they are worth a deeper look please?

sww

I found this one as it was turned into a cash shell from previous, muddied existence, and watched it reverse into Energem's W. African oil interests and took a punt, watched it rise 40% then fall back to all square where it's been for some weeks now.

There is supposed to be an on-going deal being hatched as per RNS some time ago and mentioned again on appointment of new directors recently, but it's taking a very long time to become concrete.

I'm staying in as a speculative punt on the oil price making a load of marginal prospects economic. At least all the infrastructure is there to ship any oil they do find. It has not escaped my notice that it's quite close to SEY's activities off Mauritania - although they are usually farm-out experts and FAO are doing what SEY normally do, so can't quite see a JV between them.

I expect that in the desparate search for more oil, some major/mini-major will come in and actually drill at some stage. But the news flow is a little thin to say the least.

Can't see much downside at present and any good news would lift the price - nows the time to lock some away and forget if you've a mind to get in at all.

sd

Thank you.

I will decide probably within the day, I am intrigued t6hat the ex Fusion man is there.

Low volume, but some serious buyers out there today. Summat's afoot, I wouldn't wonder. Are they about to announce that major deal they talked about so long ago? Is it with Shell or Sterling, Hardman or Woodside perhaps. Who knows, but I feel FAo's time has come.

sd

Times today - rumour of the day - large Asian interests may shortly conclude a deal for FAO's W. African assets.

25million shares traded yesterday and today, including some big sellers (institutions getting out from reverse takeover days??) about 2.4 times 20day average volume.

Price ticked up .25p yesterday and same again today.

Looks like the long awaited deal announced some months ago may be nearing consummation.

Chart looking decidedly uppish with SP haveing crossed upwards through 10, 25, 50 and 200dma's on increased volume and no where near any overbought indication. Further to go IMHO, especailly on eventual announcement, so I continue a highly speculative HOLD.

sd

Finals to 28th Feb 2005 released today. Historical numbers are irrelevant, other than the approx 6m cash and no liabilities on the BS as it entered the new year and a new life as an oil explorer/producer. CEO and Chairman's statements make intriguing reading I believe. See for yourself.

RNS Number:6735Q
FirstAfrica Oil PLC
31 August 2005


Immediate Release 31 August 2005

FirstAfrica Oil plc

Corporate Update and Results to 28 February 2005

London - 31 August 2005. The Board of FirstAfrica Oil PLC ('FirstAfrica' or 'the
Company') is pleased to announce the release today of its annual accounts for
the financial year ended 28 February 2005. FirstAfrica was created on 8 February
2005 following a reverse takeover of cash shell company Financial Development
Corporation plc by Energem Resources Inc., which maintains a controlling
interest in FirstAfrica. The information contained in the accounts is thus
largely historic and of no relevance to the current activities of the
re-constituted FirstAfrica except that, on reverse takeover, the company had
approximately 6 million cash in hand and no significant liabilities. For more
complete details of the transaction and subsequent creation of FirstAfrica,
reference should be made to the Chairman's statement and summary accounts below,
and to the accounts (which are now available for downloading) posted on the
company's web site at www.firstafricaoil.com.

FirstAfrica was created as an Africa-focused upstream oil company engaged in the
acquisition, exploration and development of oil resource assets. The first asset
to be developed is the East Orovinyare (EOV) oil field discovery offshore Gabon,
and the Board is pleased to announce that development plans are on-track for a
drilling rig to be in-place for a first well by late December. The Board is also
pleased to announce that further analysis of technical data by independent oil
and gas consultants ECL has led to a more than 30% increase in resources in the
discovery field, with 2P reserves now assessed at 11.45 million barrels. Further
evaluation of other potential prospects within the wider EOV permit area is also
underway with early analysis showing an unrisked STOIIP of 421 million barrels,
as stated in the Admission Document dated 8 February 2005. Further drilling and
infrastructure development is scheduled for Spring 2006 with first oil
anticipated late in the year.

FirstAfrica also holds the exploration licence for the Epaemeno Block onshore
Gabon, which is on the same geological trend as fields currently in production,
including Shell's Rabi Koungo. Technical data for Epaemeno has now been
successfully acquired and evaluation can begin.

FirstAfrica's other assets include two options to acquire on favorable terms
several exploration blocks held by Energem. The Chad Option consists of the
Largeau Basin in northern Chad and the Chari-Ouest block next to ExxonMobil's
producing fields in the Doba Basin in southern Chad. FirstAfrica is pleased to
report that technical data has been attained and is currently being evaluated by
independent consultant PGS as the first step toward the possible exercise of
FirstAfrica's option. Further announcements will be made in due course.

FirstAfrica also holds an option granted by Energem to acquire Engergem's
interest in the Marine XI block offshore of the Republic of Congo
(Brazzaville). On 25 August 2005, the Company became aware that a UK listed oil
company had announced its participation in the Marine XI block and that it had
signed a production sharing contract for the block. Notwithstanding these
reports, Energem has advised FirstAfrica that they regard their position with
the Marine XI block to be unchanged and their negotiations with respect to this
block are ongoing. Further announcements will be made in due course.

With regard to the upstream negotiations with a third party, FirstAfrica is not
yet in a position to provide shareholders with any more information than has
been published to date, i.e, that the negotiations referred to are proceeding,
and that it is a major potential transaction for FirstAfrica and its parent
company, Energem. These negotiations are complex and need to be carefully
managed and it is taking some time. However, premature disclosure could
be damaging, particularly to the potential transactions themselves, and
FirstAfrica needs to proceed diligently with the negotiations. FirstAfrica will
inform shareholders of any material developments as soon as they occur.

Commenting on today's announcement, FirstAfrica CEO Robert Kirchner said: "I am
very pleased with our progress in Gabon and with the evaluation of the assets
over which we hold options. What distinguishes FirstAfrica is that we are not
purely an exploration company - our EOV field offshore Gabon is a discovered
field with known recoverable reserves, and we are on track to have that field in
production by the end of next year. In addition, we have very exciting
prospectivity in the onshore Gabon Epaemeno block, as well in the Energem assets
over which we hold favorable options. We are putting together a strong team at
FirstAfrica, a team that is intent on delivering."

For further information, please contact:

FirstAfrica Oil plc Tel: +44 (0) 207 908 6280
Robb Kirchner, CEO
Rob Rainey, Finance Director

Buchanan Communications Tel: +44 (0) 207 466 5000
Bobby Morse/Ben Willey

Attached:

Chairman's Statement
Consolidated Profit & Loss
Consolidated Balance Sheet
Consolidated Cash Flow Statement
Notes to the Accounts

Well, I'm stumped. Nice positive RNS about a rig contract and aggressive push towards first production and the price dips badly. Any ideas? Not having a good day today.

sd

RNS Number:7797R
FirstAfrica Oil PLC
27 September 2005


Immediate Release 27 September 2005

FirstAfrica Announces Contract Award for Gabon Offshore Development

London, 26 September 2005 - FirstAfrica Oil plc (LSE-AIM: FAO) is pleased to
announce that it has contracted with GlobalSantaFe, Inc. for its jack-up rig,
Adriatic IX, to drill its EOV-4 appraisal/development well from late December
2005. The EOV-4 well is located in the East Orovinyare Offshore Oil Field (EOV
Field) in Gabon, and is the first of four wells that will be drilled in the
field. Additionally, two pre-existing appraisal wells are to be re-completed as
producers. FirstAfrica has further signed a letter of intent to contract
GlobalSantaFe's Adriatic VI from March 2006 for the remaining four wells in the
anticipated field development program.

FirstAfrica is the permit holder (100%) and operator of the EOV Field, which is
located 13 kms offshore in 28m of water. Oil was discovered by the previous
operator, Marathon, in the late 1990's and a recent review of the field's
technical data by the independent consultant, ECL, has led to an increase in oil
volume estimates, with a new 2P estimate of recoverable oil of 11.5 million
barrels. The field development programme is being fast-tracked and it is
expected that production will be from 6 wells via infield flow-line to a FSO.

Robert Kirchner, Chief Executive Officer of FirstAfrica, stated, "We are very
pleased to secure the GlobalSantaFe contract in the face of the existing tight
market conditions in West Africa. The timing of the first well, and our ability
to contract further for the Adriatic VI in the Spring, will permit us to meet
our aggressive timeline of producing first oil by year-end 2006."

SD Hi,

I think it's because these are too long term (drilling from March 2006, producing first oil by year-end 2006 = 6 to 15 months away from action without any delays) for some of the current shareholders, many of whom jumped in expecting a big deal on upstream assets, and the talks on those deals is still ongoing.

Cheers,
PM

There is still the long-awaited JV deal with big Asian interests to come one day on top of its offshore drilling programme. Maybe there was disappointment his was not annoucnned and they got a boring old drilling report.

Everyone must have known it was long-term since it re-listed in February - what's created the sudden volume sells today?

sd

At last, some good + news, it will keep all happy over the xmas period.
Dexter
------------------------
FirstAfrica Oil PLC
21 December 2005


FirstAfrica Oil plc

Update of Gabon Offshore Field Development Plan

London, 20 December 2005 - FirstAfrica Oil plc (AIM:FAO) ('FirstAfrica' or 'the
Company'), the upstream African oil and gas company, is pleased to announce that
it's wholly owned subsidiary GulfofGuinea Petroleum Corporation Gabon (EOV)
Limited ('GGPC') has received approval from the Government of the Gabonese
Republic for the field development plan for its East Orovinyare Oil Field
offshore Gabon ('EOV Field').

The fast-track development plan calls for the first appraisal/development well
to be drilled from early January 2006 with the arrival in the field of the
Global Santa Fe Adriatic IX jack-up rig. The previously announced mid-December
2005 spud of EOV-4 has been delayed by three weeks due to extended operation of
the drilling rig on its previous contract.

GGPC is the permit holder (100%) and operator of the EOV Field, which is located
13 kms offshore in 20m of water. Oil was discovered by the previous operator,
Marathon, in the late 1990's. In addition to the discovered oil, the broader
East Orovinyare Permit Area holds potential for incremental production from
several exploration prospects currently under evaluation.

Following the January 2006 drilling and testing of the EOV-4 well, GGPC has
further contracted for a 100-day drilling program with Global Santa Fe for the
Adriatic VI jack-up drill rig, which is currently estimated to arrive in the
Field during the first week of April 2006. It is anticipated that three
additional development wells will be drilled and completed as well as an
exploration well to prove up the broader prospect. The development plan
incorporates unmanned well head structures tied back to a Floating Production,
Storage and Offloading vessel (FPSO). Production of the light crude (37.5 API)
will be processed on the FPSO and is expected to commence in late 2006.

The Company will require additional funds to implement and complete the
estimated $68 million field development programme during 2006. The FirstAfrica
board is considering a number of different financing alternatives, including
(but not limited to) an equity fundraising, project/debt finance, and a
partnership or farm-in arrangement with a third party.

Further, with regards to third-party negotiations announced on 30 March 2005,
the Company wishes to advise that, at this time, there is no further update to
the announcement made on 7 October.

Commenting on the Gabon government's approval of the Field Development Plan,
FirstAfrica CEO Robert Kirchner said, 'the Gabonese government typically
requires a minimum of 30 days for review and approval of field development
plans. For FirstAfrica to receive immediate approval of its plan for EOV is a
testament to the technical quality of this fast-track project and our excellent
working relationship with the various agencies of the Government of the Gabonese
Republic.'

ENDS

For further information, please contact:

FirstAfrica Oil plc
Robert Kirchner, Chief Executive
Tel: +44 (0)207 908 6280

M:Communications
Stuart Leasor
Tel: +44 (0) 207 153 1527


This information is provided by RNS
The company news service from the London Stock Exchange

Morning all,
Another poster on a bb, posted that the adriatic rig is in Gabon now. I`ve checked the website and according to that it is, the only thing is that the adriatic vi is not available until june 2007!

here is global santa fe website
www.glm.com

Dexter

nice move up today ahead of the drilling any time now , still very cheap IMO
Dexter

up 15.62% and looking strong, check it out!!
Dexter

morning all,
i think today will bring a real slow down in trades, looking at yesterdays trades it really slowed down after the rns, IMO it was more of a tree shake than anything else. the rns said no deal was imminent, well that is all they could say otherwise it would have been an rns saying the deal was done or not!. a dael could or could not be done at any time, and we won`t know until we get an rns one way or another.what does anyone else think ?
regards,
Dexter

Looks good value at this price !

the rns we have been waiting for!

FirstAfrica Oil PLC
16 January 2006



16 January 2006

Commencement of Drilling

FirstAfrica Oil plc (AIM: FAO) ('FirstAfrica' or 'the Company'), the upstream
African oil and gas company, is pleased to announce the spud of its first well
in the East Orovinyare Oil Field ('EOV Field') offshore Gabon. Further to the
announcement dated 10 January 2006, the Company confirms that the Global Santa
Fe Adriatic IX jack-up rig is on location and commenced drilling of the EOV-4
appraisal/development well on Saturday, 14 January 2006. The Company expects
drilling and testing of EOV-4 to be completed by late February.

EOV-4 will be followed by three additional development wells to be drilled by
the Global Santa Fe Adriatic VI jack-up rig which is due to arrive in the field
in April 2006. Production is scheduled to commence in the 4th Quarter of 2006.
The Company expects to soon announce details relating to the financing of the
drilling programme.

ENDS

For further information, please contact:

FirstAfrica Oil plc
Robert Kirchner, Chief Executive
Tel: +44 (0)207 908 6280

M:Communications
Stuart Leasor
Tel: +44 (0) 207 153 1527



This information is provided by RNS
The company news service from the London Stock Exchange

Going to be a big day tomorrow.

"The Company expects to soon announce details relating to the financing of the
drilling programme"

Except this indicates a share placing.

Otherwise very promising.

I'll dip my toe........

I'm afraid I'm already up to my ankles - in since 10p on early re-listing after changing its nature to an oiler. So here's hoping my tenacity will pay off.

sd

I'm in for a few more from the off too.

So whats holding the price down?certainly better then nop's sandhills misadventure, when nop shot to over a pound.

Hi all
SAW - I think whats holding the price down is because there have been more sellers than buyers today, which I found strange (maybe I'm still missing something?)
But according to what I have managed to dig out:
instead of FAO just digging (like most other small ish companies) looking for the oil, their RNS of 31/08/05 stated that after having the technical data further analysed by an independent oil/gas consultant (ECL) - this led to an increase of 30% in resources, with 2p reserve now at 11.45 mln barrels, if not significant at least we know unlike some other companies just digging to find an empty well !??
I've taken a punt, in the believe that come end of year when the production have started and oil WILL be digged up, there will be only one direction for the sp (north). DYOR.

If you check there website the potential,which is what the share price should reflect is alot higher.They have some juicy licences.gilli10, on the17 there were more buys then sells.

It's concern about the fundraising that is keeping it down.

Thks guys, yes that is a very hefty $68mln they're looking at to raise - very ambious indeed, but does that not also indicate it's 'bigger' potential perhaps?
For me, it's a gamble I'm willing to take, having just re-entered again (I made some profit from them last year when it went above 10p).

Some nice buys going through.

The more buys we get the lower we drift.

Someone getting in on the cheap ?

Worth a look at this price.

moneyman - what's your view as to what's going in with FAO? Is the Chinese deal ever going to happen or is it dead in the water? Will the drilling lift the SP back to where it was (assuming some oil shows up!)? Still haven't really worked out the drift down from 10p to 4p. I'm losing interest in this one - should I stick it out?

sd

Well if you have stuck it out this long then why not wait for an update on the spuds. I notice we have some very rich and influential Board memebers so I am now wondering if we will get a farm out or JV.

Well I'm out of this one as of yesterday - couldn't hang around any longer. Whoever would have thought you could lose so much money on an oil stock in 2005???!!

If the SP shows sign of life, I might try and catch a bit of momentum - just to get my own back - later in the year.

Good luck to all who remain in board - feeels funny jumping ship from a thread I started, but there you go.

sd

Looking good this morning. Seems to be ready to start moving back up.

Seems like they may be letting their mates in first.

and out!

Has anyone had a chance to look/assess the RNS released after closing hours, on a Friday afternoon, I take it, its bad news?????? and to expect further drop on Monday?

"Due to commercial sensitivities the Independent Evaluators' estimated monetary
valuations ("EMV's") for Chari Ouest are not being publicly disclosed. In
reaching agreement on the consideration to be paid to Energem for the Chad
Concession the Company and Energem have taken into account the Independent
Evaluators' Final Summary Reports and the privately disclosed EMV's calculated
by the Independent Evaluators in respect of the Chari-Ouest Block. The Company
and Energem have also taken into account that the Independent Evaluators did not
carry out an evaluation of the Largeau Block, due to the data not being
available at the time of the Independent Evaluators' evaluations."

seems v. strange that this is behind closed doors - what are shareholders meant to think was the result of the valuation that was done, or the one that wasn't?!

why are they raising so much money to develop so rapidly on so many fronts at once - looks like Energem are cashing out big time from this one because the Chinese interest they anticipated has failed. Only my conjecture, but it all seems very ambitious for such a tiny, young company.

sd

I just saw 2 lots of x trades at 4p (8mln and 17 mln), just means something big coming?

Are we due an RNS then for those 2 big trades?

No I would not expect so gill. What was interesting was that Energem took loan notes valued at 6p. Now why would they do that with current SP at 4p ?

The EOV4 well supposedly has proven resrves as confirmed by Marathin which previously, with oil at $10 barrel, was not commercially viable. This could be the foundation with other wells to prove more resource and subsequently a significant mark higher in price.

There also is the possibility of the Chinese comming to the table with a cash injection. Looks interesting.

Moneyman - thks for that, yeh, the loan notes at 6p was interesting.....

However, having now read the complete RNS, the point where they mention that if they do not get the 2nd stage of the fundraising (minimum of approx 22mln) by the end of April 06, the company can not continue to trade, was a bit worrying?
I'm still quite new to this, so would really appreciate yours (or anyone else's) view on all this. Thks in advance.

Think they were obliged to add that, maybe legal reasons. Anyway ticking along nicely the last couple of days.

Yes, they would have been obliged to say that, but the obligation does not make it any less real a possibility.

Having been one of the frist in on re-listing last Feb, I finally sold out at 3.85 for a 65% loss because of the following scenario:-

1) The Chinese deal that was hoped for and being negotiated by Energem failed at least for now.

2) Energem have moved on in their thinking and just want to offload their undeveloped assets at as good a price as the AIM market can pay.

3) Drilling commencing offshore Gabon is not going to provide enornmous cashflow to sustain full development of adjacent optioned territory.

4) Not sure if FAO management without Energem management have it in them to get off the ground from here.

Over time they may succeed, and maybe they'll get lucky and hit oil more often than average, but the downside is now much greater IMHO than previously. As ever, I should have set a stop loss and sold out at 9p. But I've bitten the bullet now, however late, along with two other similar dogs and my portfolio has been transformed in 3 short weeks to a respectable performer.

Good luck to all continuing holders - may you prove me wrong.

sd

First african oil is just about to release news early next week concerning its drilling campain on well EOV-4, I assume its going to be positive due the fact that they think it could be in production as early as the fourth quarter of 2006, but only after a successful fund raising , 22.3 million by the end of april.

This might be a good quick buy and sell opportunty , the share price as already gone up by 40% in the last week.

Any thoughts would be helpful.

should be a bit hot this one next week,charts great as its in a new territory,should run to 10+ quickly and a nice tight spread.Oil tiddlers are hothohhot at the mo,you just have to trade them.

stockdog - 14 Feb 2006 22:55 - 76 of 78
Yes, they would have been obliged to say that, but the obligation does not make it any less real a possibility.

Having been one of the frist in on re-listing last Feb, I finally sold out at 3.85 for a 65% loss because of the following scenario:-

Think you must have sold at the absolute low and must be kicking yourself now !

Thanks, Moneyman - always to be counted on to kick a dog when he's down!

As it happens, what I put the money into instead has risen just as strongly and at less risk. So I haven't lost anything. That's the thing about cutting your losses - not to measure what you lost on the share, but where better to place the remaining value now.

Sorry to disappoint.

sd

PS. Talking of dogs, how's IFM doing? lol!

Chinas appetite for African oil

By VIVIENNE WALT of Fortune Magazine
19 February 2006
China, the worlds second-largest energy consumer, now imports about 28% of its oil and gas from sub-Saharan Africa, compared with about 15% for the United States.
In the past few years, Chinas leading energy companies Sinopec, China National Petroleum, and CNOOC have inked oil contracts from Equatorial Guinea to Algeria to Angola. Chinese President Hu Jintaos African trips have included pocket-sized Gabon, whose 1.4m people could fit into a corner of Shanghai but which has more than 2bn barrels of oil reserves. When Chinas Foreign Minister, Li Zhaoxing, toured the region in January, he spent several days in Nigeria.
We havent been totally invaded by China yet, but it will come, says Iheanyi Ohiaeri, head of business development for Nigerias National Petroleum. I get calls and e-mails daily from Beijing, from people looking to buy oil.
The calls are being answered, in part because African governments view China as a more co-operative partner than the West. China has refused to back regular Western rebukes of African corruption and human-rights abuses and last year used its permanent seat on the UN Security Council to block genocide charges against Sudan source of about 7% of Chinas oil for the massacres in Darfur.
The US will talk to you about governance, about efficiency, about security, about the environment, says Mustafa Bello, head of the Nigerian Investment Promotion Commission, who has visited China seven times. The Chinese just ask, How do we procure this licence?
China has become the biggest foreign investor in Zimbabwe, where President Robert Mugabes policies have impoverished the country and left millions homeless. Zimbabwe doesnt have oil, but it is the worlds second-largest exporter of platinum, a key import for Chinas auto industry.
Chinese radio-jamming devices block Zimbabwes dissident broadcasts and Chinese workers built Mugabes new $9m (5.2m, E7.6m) home, featuring a blue-tiled roof donated by the Chinese government. While Western politicians railed against Mugabe last year for flattening entire shanty towns, China was supplying him with fighter jets and troop carriers worth about $240m, in exchange for imports of gold and tobacco.
China has also agreed to sell armaments to Nigeria $251m worth of Chinese fighter jets, financed by Chinas Exim Bank and satellite technology provided by defence contractor Norinco. If China wanted to go out and develop Europe, it would be impossible, says Dai Adi, a Chinese journalist in Lagos who moved from Beijing in 2001. But here they can.
The next hot spot may be Angola, where offshore oil could transform the country from one of Africas poorest to one of its richest. In late 2004, while International Monetary Fund officials were berating Angola for corrupt oil dealings, China gave the government $2bn in credit to repair railway tracks bombed in the countrys long civil war and to construct new office buildings in the capital all using Chinese contractors. The timing was flawless: When French oil company Total applied to renew its licence on a large oil-production block, Angola refused, handing it instead to Sinopec, with which it then formed a joint venture to bid on other oilfields.
China faces its own challenges in Africa. Tony Chukweke, head of Nigerias department of petroleum resources, admits that he often finds it difficult to negotiate with Chinese companies, since each detail requires approval from officials in Beijing. It is very, very slow, he says. They go back and forth. And when they come back, sometimes you find it is not what you agreed to. Chukweke, who worked for years as a Shell geophysicist in London, prefers negotiating with Western oil companies: Exxon comes in with clear mandates, he says. We can negotiate within those mandates.
Still, Chinas intense energy needs make it an alluring partner. Nigerias oil-business development manager Ohiaeri points out that his government can pressure China far more than it can western governments. They are desperate for our resources, he notes. That symbiotic relationship continues to grow, and with each passing day and each new deal Chinas role in the region deepens.

stockdog

You have made a few mistakes on your live for sure, all is evident on selling FAO @ at 3.85p,
but the biggest one on Moneyam is to use the nickname "stockdog" you must know,
the asociation with the name "dog" as being a negative one, therefor you associate yourself
with such a name, makes me thing, you must be yourself on a negative frame of mine for some time now.

               LUNCH TIME FUN

       
IT IS NOT WHAT YOU DO THAT COUNTS, IT IS WHERE YOUR HEAD IS AT

Negative feelings or emotions are useless in themselves. Negative attitudes can become positive
if one realizes that it is not actions or deeds in themselves that have value, but rather the way one feels.
This is not to say actions can be independent of feelings. Harmful actions breed negativity.

In general, a positive attitude brings more favorable results and as long as you can be objective,
your circumstances will not make you anxious or depressed.
You have the power to remove negative feelings and replace them with positive ones.

Or by the way. last weekend I selected the shares to go UP ............ This is my selection for the "UPS" this week 12 Feb'06 FAO

Share	Volume	Chart	News	Various
FAO price 4.03p	Good volume and rising 4 times the usual	Doing a double bottom and a breakout from the 4.50p last high will be very positive	Company has raised 15M on loan notes last week to develop the EOV block were has an stimated 421M BOP adquired from Energem ( parent company holding 51% of FAO )	Energem is happy to take loan notes were the value is 6p in exchange. If the second fund raising is succesfull the company expect to be cash positive by Q1 2007

Down 20% today, i suppose a bit of profit taking, last deal of the day was to purchase 100ks worth, does someone know some think, news regarding the drill should be out any time now, any thoughts

Looks like I left this thread just in time, looking at the weirdos who've just arrived.
My positive attitude has brought more favourable results elsewhere since selling out FAO on 27th Jan. Obviously never heard of the theory of paradoxical intent!
Good luck everyone.

sd

Hi Stockdoggy...and Im sure if truth be known a few have done the same. Think I bought your shares though (actually 4p) last week as they caught my eye again. I also bought at 11p last year, saw them go to 13 then drop and got out for 11.5. Unusual for me and I was new then as well but i am stuck in a few more the same situ as you but not brave enough to take the hit. Trading last week has been great though and have sold some at break evens just to be in on the action of others......

whats going on here - i thought this lot had found some oil

Having spent the day reading up on this one, I am not too surprised it fell as it did and will probably go lower tomorrow.

That said, I am impressed with the aggressive attitude of the Management, their aims, and their apparent ability to deliver, in that EVO-4 is delivery in my book.

It is cash dependant, but this may be sorted out very soon. (Placing, farm out or loans. They have no cash to continue beyond 6th April).

If they are producers by the end of this year, 4-5p will look very silly money......

http://www.rigzone.com/news/article.asp?a_id=29860
FirstAfrica Oil Encounters Good Oil Shows at East Orovinyare-4
FirstAfrica Oil PLC Tuesday, February 28, 2006


FirstAfrica Oil has completed the East Orovinyare-4 (EOV-4) appraisal/development well in offshore Gabon. Using the Adriatic IX, and operated by First Africa Oil's wholly owned subsidiary GGPC, the principal objective of the well was to appraise the eastern flank of the East Orovinyare structure.

The well encountered the Batanga Sandstone reservoir at the expected depth, confirming the structural interpretation. An oil column of 165 ft (128 ft) waas encountered.

Related Pictures

East Orovinyare-4, Offshore Gabon


GSF Adriatic IX


Unexpected oil shows were encountered within the deeper Anguille Formation which was not an objective of this well. These oil shows will be further evaluated.

Drill Stem Testing of the Batanga reservoir recovered oil with API Gravity of 37.5 degrees. Mechanical difficulties prevented oil flows from being achieved. These difficulties were specific to this well and are not expected to recur in subsequent drilling.

EOV-4 has been temporarily suspended with the Adriatic IX moving to another contract. Full analysis of the reservoir and test data for EOV-4 and the crude sample recovered is under way and results will be announced in due course. Drilling on the field will re-commence with the arrival of the Adriatic VI in Spring 2006.

Commenting on the drilling, Robert Kirchner, Chief Executive of FirstAfrica, said, 'I am very pleased with what has been achieved in EOV-4. When the 'fast-track' development of the EOV Field was first conceived in summer 2005, many told us that it could not be done. Against intense competition for rigs and materials, we secured two rigs for the field development program, the first well of which has now been drilled. Preparations are now in place for the next phase of drilling. This progress is testament to our experienced technical team who have now firmly established this company's operational capabilities. Our plans remain on track to achieve first oil before the year end.

Well, I bought some of these yesterday.

There is an obvious risk in respect of funding, but if that works out, and if they flow test evo -4 sucessfully and it is good, then it may well pay off.

Production by year end?

We will see.

"First Africa is not just another AIM Company seeking capital for exploration-only projects. What differentiates us is that we are successfully progressing a fast-track development project in a discovered oil field that is expected to produce oil and cash flow from early next year" said ROBERT KIRCLANER CEO OF FIRST AFRICA OIL. NOW MAKE A DECISION. BEST LUCK TO ALL AND TO MYSELF.

watch this space. excellent future, will keep adding more.
best luck to myself and to all

MORE THAN 1744OOO INTRADAY VOLUME ALL BLUE. I DON'T BLAME THEM. HOLD ON TIGHT

Great news Chad behind us onwards and upwards from here. Expect EOV7 drill results soon and detail on the FPSO.

more than 15898000 intraday volume all heavenly blue. smart investors with eagle eyes. i will surely follow them. watch this space

Hi georgetrio

Running out of money however, might be able to scrape a few quid together if still buy at 3 ?? Had a quick look on web site any more new news ??

SMILER

The main thing is EOV4, sidetrack successful and flows 1704bopd. not bad for a little fish like FAO. the sp has dropped from 11p to 3p due to the CHAD-MALI option. now this has been put behind. production will start early in 2007. i consider FAO very undervalued and like their market capital 77million. considering the present oil price, the future looks bright for FAO. you may read more about FAO on advfn and do research FAO more before investing. i am in for medium term. with 3p a share you get 77million company, 1704 bopd and low cost environment of AFRICA as FAO is focusing on AFRICA only. GABON is french speaking country in africa, very stable and STERLING ENERGY (sey) is there too. if FAO drops, i will continue to buy. best luck

Thanks for that, Raiding Piggy bank Now !! Alot of Red today ?

SMILER
never mind the red, it will be blue and it will be red that's the beauty of this sweet and sour menu. however i hate stupid sellers who come back few days later to rebuy what they already sell but at double price. they must be very rich, i would understand if the company is still in the exploration stage or has a very weak balance sheet. well, it is their money and they very afraid to lose.

ARISE AND SHINE FAO; FOR YOUR LIGHT HAS COME.
CAN YOU SEE AND SEE THROUGH, EAGLE INVESTORS?
BEST LUCK TO ALL AND TO MYSELF AND OF COURSE TO FAO.

Apart from the knowledge, the experience, the financial capability, two superior
abilities seperate successful investors from unfortunate investors. they are:

- the ability to make the right decision

- and the ability to make the right choice. That's all. Nothing else.

An investor with these abilities will be a winner whatever the conditions.
Every investor at a point in time will demonstrate these two abilities and the mood will be high and the reward excellent. On the other hand, failure to make the right decision or the right choice can be painful. The same thing applies to the management or any leader. Very often, one refuses to take action because of the past failure or past disappointment but by doing so, it is possible to miss few excellent chances. No one like failure, but failure to act is a dangerous trap.
Very soon this stone (FAO) that the builders have rejected will become the cornerstone imho.
Please make your decision after your homework and stand by your own decisions.
FAO is highly undervalued company with excellent future, the SP is already at floor level but still alive and will not perish but grow. the way is only up therefore, i can not afford to sit and look on without buying as a mad investor. Well, we shall see. To decide or not to decide that's the question. This sp will not rise but will jump and soar `imho. Now how are you feeling when FAO's sp jumps to 12p?
Best luck to all and to myself.

georgetrio

Lets hope so !!

SMILER
watch this space and best luck to you and to FAO

PLEASE FIND BELOW PART OF THE POSTING FROM ADVFN UNDER THE USER NAME investorjon dated25/08/06 time17.28

.............. Even if EOV7 produced nothing, the rest of the wells should already supply 12000bopd assisted, not bad for a little company, and where there are many more companies with larger mkt. cap. who have not got 1500bopd let alone 12000, and who do not have other onshore assets to develop and further assets potential in the Gabon offshore, here the upside was considered to be 420+million barrels.
............... Companies like Desire Petroleum, Falkland Oil and Gas, Rockhopper are valued just on the basis of one or two licenses, with not even a sniff of an oil rig in 2-3 years, now whatever we may say about FAO...............

best luck to all and to myself

investors with genuine eagle eyes will recognise value. will you recognise value?
if nobody knows what tomorrow will bring, one thing is certain or stabe; that is: change. there will be bear market low price, and there will be bull market high price then there will be again bear market low price and the cycle continue. it has been so before and it will be so but the key element is change. when will be the next bull market for FAO. investors who recognise value will be rewarded.

georgetrio

Well i hope fao,blr do well, as my aen shares have just droped !!

SMILER
do not be discouraged but be strong but keep your eyes wide open. i do no hold
aen but i just buy more of STERLING ENERGY at 20p. however i am in STERLING for longterm and will keep buying till i reach my target. 18p will be nice.
talking about FAO, i am very relaxed and if it drops i will buy more.

The timing and the pricing another dual challenge for eagle eyes investors.
now you do your homework, stay awake all night, refuse to eat your dinner because the matter has become so serious as you recognise the value in front of you. you make the decision to own a piece of that company but now
when should you join in?
and at what price?
if you get both right, you can be icy cool when the heat is up.
NOW is the best time to join FAO at a juicy price. can be sweet and can be sour but when it is sweet and sour it is delicious

georgetrio

Have you seen the latest RNS (INTERIM RESULTS)

smiler
not completely but i read few postings on advfn. FAO is a company that is coming out of exploration stage into production level. when production starts in q1 2007 in a very very conservative view it will be 8000bopd. now FAO is putting its house in order because they know they have to and they will. they came out of chad and mali deal in time, and now the result and future fund raising, not easy but when production starts all the ugly past will not matter any more. now the question is how cool can one remain when we are going through this sour stage?
those who sell will help those who want to buy more cheaply. i may be wrong but i made a decision and i will stick with it. the real capitalist did not wait for the war to finish before they start investing because they work with the key and stable factor : change.
will see. more best luck to all and to myself. i repeat FAO will not rise but will jump and soar. please make your own decision because it is your money.

Not into these yet, have been watching and reading for a couple of months. Whilst they will be a producer next year I fear either a consolidation and rights issue, or a forward selling of future revenue to finance them through to production. All IMHO of course.
2517

2517GEORGE
Yes that's a possibility but i do not worry about that in this case even though i always sell after a consolidation. i will remain in place but buy more at any reduce price till the mess is cleared. one thing is certain is that they will produce more than 8000bopd. when the cash starts rolling in abundantly, continuously the sour taste will become sweet. how fast is FAO sp rising? or how fast are permitting FAO to rise? 100%, 200%, 300%, 400% ... we shall see.
best luck

When FAO has no OIL at all during the exploration stage, the share price was 12p
When FAO was about to buy a risky Mali-chad option the share price went south to 3p. why? because of investors fear and uncertainty. but change is certain.
Now remember that there is plenty of OIL in CHAD and FAO managers can not afford to sit back and dream on. The best managers like risk but control risk.
And yes they control Mali-Chad option well , look, they came out at the right time.
If you want a company that does not take risk, then put your money far away from OIL companies because, well can become dry, oil price may drop and some companies may not even get the rig to start drilling or even find one bopd.
Now the share price is 2.80 when FAO has OIL, I mean SERIOUS AMOUNT of OIL.
Up to 8000bopd minimum to be produce in Q1 2007. there is no if, no but, or maybe. AND there one more drilling going right now. When a company is seriously OVERSOLD, One must become aggressive buyer if one wants to and i will buy more. Please feel free to do your homework before investing. Best luck to all and to myself

Any ideas on director holdings, other than options?
2517

2517 GEORGE
goog morning george

- G Hall Director................2028798..........0.09%

- P Foulger.....Director.........3000000..........0.83%

- A Reynolds...Director.........8500000..........2.49%

BIGGEST HOLDERS ARE:

CAPITAL GROUP COMPANIES.....282713582....10.57%

FIDELITY INTERNATIONAL LIMITED................9.45%

MERRILL LYNCH INVESTMENTS MANAGERS...158745813..........6.83%

georgetrio

http://www.firstafricaoil.com/UserFiles/File/Reports/Placing_Presentation_May_06.pdf

East Orovinyare Exploitation Permit
PSC Summary
PSC effective date: -16 Feb. 2004
Duration: -10 yrs + 5yrs + 5yrs
Royalty:- 5% of production up to 10,000 b/d -8% of production between 10,000-20,000 b/d
Production Sharing: -State share = 32% of profit oil up to 10,000 b/d-State share = 40% of profit oil10,000-30,000 b/d
Cost Recovery:-Up to 75% of net production
State Participation:-7.5% upon production

The figures dont look too good with a very heavy cost for recovery, plus there are a heck of a lot of shares in issue.

As I understand it, any profit from EVO is to service the loans, development and exploration of other ventures.

The return to the shareholder is nil till they find or develop something else, or do I have this wrong?

Good luck with it though.

IN the SHARE MAG dated 02-08March 2006 issue9
On page 18&19 The title of the topic is:

NEW CHANCES TO GET RICH
In total the mag selected 50 companies including FAO, BLR and SEY.
Here is the whole list:
AFR, AEX, AST, BLR, BLVN, COIL, CDL, CSH, CHP, COP, DES, DGO, EDR, EEN, EME, EEL, EOG, FPM, FAO, FEP, GPC, GED, GOIL, GKP, GPX, HDY, IEC, IOG, JKX, MXP, MOG, MDL, MRS, MRP, NPE, NOP, PRE, PCI, PVR, ROS, RPT, RKH, SQZ, SBE, SEY, TAG, TXO, VOG, WAM, WNL.
THE MAG PUT IT LIKE THIS:
The bare truth is, however, that the world today is more DESPERATE than ever for new sources of oil and natural gas and small cap firms are queuing up to strike it lucky. With strong oil price..... underpinning confidence, there is still a very real chance you can back an explorer that gets lucky.

IN my view there many hidden values in FAO at this stage as the share has been OVERSOLD BIG TIME. However with a production of a minimum of 8000bopd coming very shortly, investors will wake up.
What will happen if FAO make a very excellent production acquisition?
Remember FAO is focusing on Africa where the cost is low.
The currency in Gabon is CFA not Sterling pound and 1=900cfa.
Yes there are many shares, YES FAO is lost making now but it has OIL which is the most important thing and will be producing and that's not the end, it must mature through acquisition or by finding more oil. Again this is a very good start and I will support FAO.

georgetrio

could do with some good news, lets hope FAO does well , had a small holding in AEN , bad news !!

Smiler
keep smiling whether you are winning or losing because life is a smile.
I think, when the last seller reach the exit, then everybody will agree that FAO
has be OVERSOLD. i bought more yesterday at 2.65p but if it drops to 2p i will buy more. At this early stage it was easy for FAO but those who cry will be comforted. best luck

georgetrio

I was smiling right untill they suspended trading on AEN !! NEVER mind still plenty of opportunities around, might need a sub !!!

When a company starts making money, serious money, their balance sheet improves, their cash level increases making it,more attractive to the broad investors.
The good sign can be debt burdens reducing rapidly and the company becoming more confident. A company with cash may recruit excellent management because it can afford to pay for those excellent talents. There is also a possibility of
- Excellent joint venture
- near production or productive or highly valued asset acquisitions
- Smart mergers
- bring into production current asset.
I think that's the beauty of small cap high risk and high reward play.
however in this case, the main question is HAVE YOU GOT OIL?
And the answer for FAO is yes. The problems FAO is having now are temporary and they are there to make the company. Maybe it is to early to make such a bold statement but if you look at it with "eagle eyes", you may see the hidden values.
As i said before FAO will not only rise but will jump and soar after the last seller is out. We coming near the concensus indicator. My verdict is FAO is Oversold and this pearl has been put under feet. NOT FAIR, NOT RIGHT. Now can you see the future?

georgetrio------belated thanks for your post No.115.
2517

Looking at my posting n115 on this thead, i noticed that the three institutional investors in FAO have each a holding of more than 5%. which is quite significant.
Any holding above 5% is a serious engagement or a vote of confidence.
One should remember that even GOO which is a very excellent company has one institutional investor in MAN FINANCIAL which holds 4%. FAO is still putting its house in order but has three.
CAPITAL GROUP....10.57%
FIDELITY INTER.....9.45%
MERRILL LYNCH.....6.83%

WHAT DOES STERLING ENERGY (SEY) HAS IN COMMON WITH FIRST AFRICA OIL(FAO)?

- Sterling Energy is Oil lover as First Africa

- Capital Group Companies is a holder in Sterling as in First Africa

in SEY......46622894 shares....3.32%
in First Africa....282713582 shares....10.57%

Very interesting as Capital group must have done its homework before investing in this Oversold FAO.

EXTRACT 1 FROM THE LATEST INTERIM

" In addition to its exploitation permit, the EOV concession also includes an exploration area for which 3-D SEISMIC has been attained and analysed. In its January 2005 report, ECL estimated that the EOV concession prospects have
AN UNRISKED ESTIMATED 421MILLION BARRELS OF OIL IN PLACE (STB).
It is anticipated that FAO will fund its exploration drilling from CASH FLOW after commencement of production at EOV and accordingly the company has progressed plans from drilling prospects pending availability of suitable jack-up drilling rig"

georgetrio----the co has stated that a fund raising will be required until production @ EOV, any ideas when production is scheduled? If it's been mentioned then I have forgotten.
2517

2517george

Production is scheduled in Q1 2007. everything on target. FAO is feeling confident and bold. They have a clear vision and has been honest with the market and i like that. best luck

EXTRACT 2 FROM THE LATEST INTERIM

"As the EOV PROJECT has matured and move quickly toward production, so too has FAO grown into its own. The company's rapid maturation allows it to agree with effect from JUNE 2006 to the early termination of its Services Agreement with former parent company ENERGEM RESOURCES. The result will be reduced OVERHEAD EXPENSES going foward"

georgetrio, what price did you get in at, what's your target price & timeframe? thanks

RAMU
I got in at 3p, never seen any bargain like this in my life. Must be a luckyman.
My target price is 12p within three month or so but that remains to be seen. The key is that when the veil is removed from many investors' face there will be a stampede and the rush to buy. In my view FAO will not only rise but jump and soar like a free bird (IMHO). Management must focus on the business mission or learn something from Gold oil. Let put the past behind us and celebrate the near future production of more than 8000bopd minimum. Once investors realise that there are hidden values here and that risks can be controlled they will come to FAO's Party. Finger X
Best luck to you and to myself.

EXTRACT3 FROM THE LATEST INTERIM

"While progressing toward first Oil and Cash Flow from EOV, First Africa Oil has also made good progress with its EPAEMENO ONSHORE EXPLORATION BLOCK.
The company can.....foc.u.s its energies on the start of Oil Production from our Gabon Asset with future expansion being self-funded from Cash Flow"

please note that there are OFFSHORE ASSET AND ONSHORE ASSET.
best luck. The future looks bright and these are serious matters.
make your own mind up.

georgetrio

Too True,, he who dares......

EXTRACT4 FROM THE LATEST INTERIM

"14th January 2006 heralded the start of a new start of a new phase in the development of your company when drilling commenced on FAO's first production well at its EAST OROVINYARE OIL FIELD (EOV) offshore Gabon West Africa. The first of development wells was drilled during January using The GlobalSantare Adriatic IX Jack-Up rig ........ The last well EOV7 of which is currently being drilled."

EXTRACT 5 FROM THE LATEST INTERIM

The republic of Gabon has proved to be an excellent fit for FAO's initial projects,
offering the Company a stable environment combined with
attractive economic terms and dedicated work force

Now it looks like the last sellers exit the door and buyers coming to their senses after lastweek overselling. It is nice to see FAO's rebirth with a new executive team as the old team becomes non executive. the vision is clear as the production is on schedule and the confidence and the energy of FAO are at all time high. Everything is ready for this share price to jump and soar as a free bird.
It looks to me as a perfect restructuring, surely, i can not ask for more.
The key question is: will this company be making a lot money very shortly?
And the correct is: yes indeed, it will be making serious amount of money everyday. When a company is seriously oversold without any rational reasons, I will not stand by or sit on my hands. Please do your home work before deciding.

Many investors do agree that it is better to buy shares when they are cheap or undervalued and sell them when they are overpriced. However, many do find it difficult to apply. Safety margin can not be ignored or disregarded .

EXTRACT 7 FROM THE LATEST INTERIM

In order to meet our goals for the fast track plan, facilities fabrication has progressed in parallel with the drilling program. The Platform is 80% complete with installation now planned for the first quater of 2007 and production to commence shortly thereafter.

HI Georgetrio

Things are looking ok, have you looked at the trades today!

HI smiler

yes, i did look at trades today, it was sky blue all over, the last sellers have gone and the value is highlighted. best luck.

FAO NEW APPOINTMENTS ON 04/09/06

NEW BOARD FOR NEW START FOR NEW FIRST AFRICA OIL

PLEASE CHECK YESTERDAY RNS FOR ALL APPOINTMENTS.

Appointment of JOHN BENTLEY AS EXECUTIVE CHAIRMAN

The board of FAO is pleased to announce the appointment of Mr John BENTLEY as
Executive CHAIRMAN, effective 1st September 2006
Mr Brian Menell, currently executive chairman will become Non-Executive Deputy Chairman.
Speaking of his appointment, Mr BENTLEY said: " I am delighted to take up the appointment of FAO at such an interesting period, leading in its development, shortly before production is expected to start from its first producing field offshore Gabon. This will provide the company with a robust platform for future growth."

georgetrio - do you really hold all these oil minnows or are you on a wind up?

YES, I HOLD FAO, PVR, SEY, GOO, GTL WITH NO REGRET. I HUNT JUICY LITTLE FISHES BUT AFTER SERIOUS HOMEWORK. THE HIGHER THE VOLATILITY, THE HIGHER THE RISK AND REWARD. MY FIRST PORTFOLIO WAS A DISASTER BUT EXPERIENCE COMES IN AND I CAN SAY CONFIDENTLY THAT I HAVE THE ABILITY TO RECOGNISE VALUE OR SEE AND SEE THROUGH THESE LITTLE FISHES.
IN ORDER TO WIN, ONE MUST BE ABLE TO CONTROL LOSS SAID MY GRAND MOTHER. WE ALL LEARNING EVERYDAY AND IMPROVING ALL TIMES.
I ALSO HOLD CFE, BOUGHT IT AT 1P NOW 2.58P, DCD AT 1P AND WENT TO 1.30.
I ALWAYS TAKE 20% OF MY FIRST PROFIT AND BANK IT. BEST LUCK TO YOU AND TO MYSELF

seawallwalker--------- I can quite believe it, I'm by nature a value investor and always will be but, I have been bitten by the oil bug, I hold PET (2 years+) CHP,GOO, PELE and SER the last 4 bought from Feb this year. They tend to be more volatile and exciting then value stocks, I'm down a lot on PELE, even on PET but the other 3 i'm into profit, quite nicely on CHP and GOO, I'm just waiting for PELE to score.
2517

georgetrio

you have done well, I have BLR AS WELL, still waiting on OXS to move !! lost big on AEN, NOT sure whats going to happen there !

smiler

the loss will be accounted for if and only if you sell the shares. there are times when one must sell shares and go and find another company. however if the share went down but there is still plenty of value in the business i will buy more shares at bargain price considering the economic power of the business and the market health. if you do not sell; then there is only paper loss till recovery. i bought NMI at 1p but just because of recent Directors selling the share went back to 0.69p. not very nice but i know value is there so i became aggressive buyer. well today the share is back to 1.10 within a month. very nice indeed and i always take my 20% porofit and bank it. Sould be like this all times but life is sweet and sour. sorry to be too long here. best luck

Smiler

on oxs, i think you should check the net asset value (nav) of the company. if the share price is below the nav there should not be a problem. i will be looking at this myself.

Georgetrio

Thanks for that, appreciate the advice just seems a bit slow at the moment (oxs ) I THINK aen is gone !!

Georgetrio 20% of first profit is a good tactic.

I may do that in futrue, it's a way of avoiding a sudden drop and loss as most stocks in this field rarely lose more than that on a dry hole for example.

I admire your accompanying enthusiasm.

I will look again at PVR and FAO because of what you have said so far.

I nearly bought PVR today before I saw you were on those too.

smiler o - I have been around the block with things like PET and PRE and don't feel much like going on another lap.

Good luck with them.

sww

Thanks I am stuck with them for a while i think !! oxs may be ok in the long run ( i hope )

seawall

Ilike PET very much and I hold it for a year then i sold it, reason is, it was a modest holding but i failed to buy it around 29p before it hit 89p. too late, even though, I had it on my watchlist, I learnt from that. i then bought it at 45p waiting for it to drop a bit more so i can increase my stake but it did not happen.
I still think over time it will produce nice value for its investors. If it hits the ground i will pick it up. that remains to be seen

smiler
i will check aen

DYOR - do your own research
www.rnsfocus.com

seawall

yes, profit taking is important where there is no dividend payment and in volatile shares. I learnt from my past mistake but if the company is excellent i try to buy when the sp pauses and is really value cheap. i was also buying in momentum shares, now i stopped, i don't buy anymore a share that is far over the net asset value. i bought Goo between 5p and 6p that was good value then i bought it at 7p just right but i did not buy it anymore because i was waiting for the news. i will buy again at 8p if possible because is top banana but i want to buy it cheap at each level. I think PVR should be bought between 5p and 6p and wait for the next level but PVR is a very excellent company. FAO is reborn and will shine by all means. RIGHT now FAO is more than cheap.

wisebob

I have read all RNS on Aen . its now in the hands on the Bangladesh government but does not look good, but thanks !

georgetrio - fair comments, thank you for sharing your thoughts.

SWW

do you hold ERX ??

No I don't.

I was tempted to do so as I thought they were involved in the recent trials, but unfortunately the more bull I have seen both here and elsewhere, the more the stock has fallen into the mud, and I can't see the truth, so I will pass this time.

On the ERX thread I said I had employed my bargepole, and so I have.

Smiler
i think the case of Aen was a set back unfortunately. hopefully they will clear the mess and handle that but patience is required. i do not hold AEN but in my view if i were in that position i will hold on to the shares or buy few more at this level but this is not easy at all. best luck

hello georgetrio
have you level2 on FAO?
Any idea how much in the book on ask side at 3P today?
with all the buyers, the sp was not able to go higher as 3P

razepy
No, but yes it was all blue today but with the recent overselling, it will take few days before the buyers effect starts showing. it is a very good start though. i think the market really likes the changes in Fao and their new confidence.

Looking forward

Now that FAO has appointed a new team, it is possible to see some shares buying
ie may be Chairman buying shares together with his team. Their support in buying shares will be welcome. However that remain to be seen.

In my view, the first step in making an investment decision is to recognise excellent companies. the next step is to recognise whether the share price is fair, overpriced or expensive or undervalued. however timing is paramount. One should also know whether this is a bear market, a bull market or a sideways moving trend. The common sense is never go against the market trend. As they
say: the market is your friend. Every investor or trader is different but everybody
must control risk, and their emotion. This is not ramping, this is my view but make your own decision so you do not blame anybody else.

about 5 million shares at 3p need to be taken our before the price has a chance of rising, quite a hefty block which seems to guarantee a settled price for the day.

Drilling results out, look good.
2517

2517GEORGE

Will be checking that. thanks.
i THINK THE VEIL IS COMING OFF THE EAGLE EYES INVESTORS' FACE. WILL SEE.
BEST LUCK

you were right georgetrio

Surely they mean 2006????

smiler
Looking forward to another party. This week has been excellent as per many buys.
I mean serious buyers. I takes time to impact on the price. probably by next week thursday in my view. Same thing happened with CFE, now it moves from 2p to 3p. best luck

Share price went to 3.20p, good sign, excellent future. finger cross

Next week will very interesting after this week heavy buying. It looks to me like an assault on bears. little fishes can fly.

anything about FAO in weekends papers? this week will test fao's commitment to
increase shareholders value in my opinion. will see.

Many will agree that having a good neighbour will contribute to our happiness and the same thing may apply to a company. Apart from fao which has its producing asset in Gabon there is Sterling energy with asset in Gabon and Tullow Oil with asset in Gabon. About Tullow oil, SHARES Mag said in the current issue:
"The company (TULLOW) is aiming for a daily 80000 barrels of oil equivalent by next year as it adds emerging oil fields in Gabon and Congo Brazzaville to its roster."

Please note that FAO will be producing a minimum of 7000bopd in Gabon in 2007 with certainty for increase.

In my opinion, FAO is well undervalued and a fair price of 6p a share is overdue in view of recent restructuring and the coming production. All will happen very quicly when a news paper highlights the potential of FAO. look at CFE, investors disregarded CFE but the Times underlined this little fish, it went from 1p to 3p and still rising. Only god knows how far it will reach. The beauty of CFE is their business system. Networking franchising. If the number in the network is n then the economic power is: Power=nxn. if CFE franchisees are 16 then its economic power must be 16x16=256. BUT now we have FAO, in this case n should be the number of producing wells. Slowly but surely, the rising has started. (One should always do its own homework before investing). All is my view.

Just looking at the last three months chart, i notice, the highest point was 3.48p, the lowest and latest support level was 2.59p. looks like sideways moving trend without being too negative. this morning touches 3.02p. in my view very encouraging but investors a bit not sure what to do but the waiting time is over and the fish will fly. All in my view. best luck.

georg , you seem to know this share well - i'm being lazy but do they have enough money already to get to 7000bpd or is there a fund raising to come ?

fund raising is coming once and for all before production as more oil potential has been located. i do not worry about that as that's the sour part before the sweet. please check the latest interim. will see. best luck

georg , thanks for reply

looks to me like the sp is searching for an escape route to high places. free bird.
Must keep my eyes wide open. what going on? is anything up? how long more?
Just thinking aloud. Best luck

Looks like another buying opportunity coming up.

Yes it does, georgetrio any ideas on why they are weak today.
2517

It is low today, got some more just to bring the Ave, down ! (did show as a sell ) ??

2517George
may be oil price low at the moment and first production now in Q3 2007.
Also shares in general find their low level in september but last year it did not happen in september but in october. in general when the investors' context changes then the content can be renewed. having said that FAO is in better position than what it was three months ago in my view. will keep my eyes opened. best of luck

Nice to see CFE flying like eagle, from 1p, it is now 4p. OK let say a cool 400%.
The strange thing is, it took an article in the sunday times to wake up potential investors. Now will the same thing happen to Fao? how would you feel if it happens? what will you do with all the cash? in my view FAO will jump and soar but that remains to be seen. finger X. don't take my word for it.

Investors are always looking forward. How far ahead investors are prepared to look will vary but it is commonly said that the equity market is looking at conditions about eighteen months hence.
That does not, however mean that the market gets it right, and new factors can always come into the assessment.

things change. Do not underestimate little fishes.

this has got me puzzled - big dilution coming?

We know there is a possible dilution to finalise the Gabon project !

THE sour part of the sweet & sour game.

Investors did not like the delay in production ie instead of Q1 now Q3 2007

Investors did not forget Chad & Mali option even though that's now in the past

Uncertainty, doubt, fear, irrational decision set in

Many stop loss has now be activated due to poor sp performance and these stop loss activated automatically are holding the share price down

Investors lost faith in management even though new team now in place

Fear of dilution and panic, greed all now activated

My view is that investors are right to get angry with management tactics so far, they are responsible to bring the party into full swing, and now they did not even though they have plenty of oil. As a longterm investor i can wait at least two years but only if things start getting back in place and they are. my eyes are fully wide opened to keep management in check. However, history will be made here when big quantity of oil starts flowing. Having set Q3 as new production date, what would happen if the production starts in Q2 or even on target? Maybe new management just tries to avoid mistakes and give themselves enough time, knowing that they can deliver.

Hitting an all-time low on good volume. ;-0 Nasty

Interesting website they have. Think I'll forget Chad. Far too much war/corruption/instability. Gabon looks interesting, but all unproven as yet?

BULL view

-production may start earlier than Q3 or on target Q1

-Daily oil production may exceed 7000bopd or exceed 10000bpd

-New oil found

-What if there is a share buy back after cash rolling into accounts?

-farm-out deals

-excellent acquisitions

ALL above can happen but that remains to be seen. they are possible and if they happen the share price will jump and fly like a free bird. Management must perform and deliver to earn the respect and the trust of longterm investors.
best luck

Would prefer to be getting in after that all starts, georgetrio. It's all a bit pie-in-the-sky until then?

Maddoctor, further to your Q on the other thread, is not the FAO SP drop due to the fact that their balance sheet is largely made up of intangibles, which are fully valued at the current SP? Given the current slide in the oil price, I'm not surprised that this is taking a bit of a beating.

Agreed, if they manage 7,000 bopd, that should be good for a doubling of the SP, but obviously that is going to take up to 12 months to bring on-stream.

Short-term this stock is a "sit-and-watch" IMO.


Georgetrio, with all due respect, I think your hopes of a share buy-back may be a tad premature. With $50 mil of debts on the balance sheet, I can't see them chucking loads of cash at shareholders, can you?

You'll be lucky to get a divi equalling 0.5% of SP within two years of first oil production, IMO. Management are going to sell this to shareholders as a capital growth story and keep the cash for further projects.

All IMO, PDYOR.

BIG al

Pie in the sky at this stage, yes. Too much at stake here, so i will remain on board till that time. i am angry as every investor but i like the sour part of this game because my grand-mother said: in order to win, one must accept to lose too. sorry to repeat myself. your decision is a cautious one and i can not blame you for that. best luck

soul traders , not one for balance sheets myself since sentiment seems to rule most of the time. The problem for me has been them dangling this 7000bpd on the one hand and on the other an unknown fund raising. I probably should look more at the figures cos i was unaware they are already 50m $ in debt! . Thanks for the replies , i will wait.

SOUL
yes, buy-back will be nice but very ambitious here.

MD, sooner or later the fundamentals catch up with you - such as in the iffy kind of market we're experiencing right now. Add in the time to first production, need to raise more funds before it happens, (they'll need to pay out almost 20 mil to cover current cash burn plus creditors payable within 12 months, which doesn't leave them with much of the $43 mil they raised in June), and you have a lot of downside which has dragged the SP lower.

I agree that this is getting to the point where it looks as if it could be oversold, but to be on the safe side I'd want to know about the terms of any forthcoming fundraisings before committing any cash - (EDIT) they need another $45 mil according to today's RNS, which is a lot of money for a company capitalised at only 60 mil. Probably they'll issue another convertible bond as they might decide that a pure share placing would be too dilutive.

Big Al's view of waiting until the action starts before buying is the safer course at present.

All IMHO; contrary views welcome. I'll stick this on my watchlist, though, as the turnaround could be worth witnessing.

George, "not going to happen" would be a more realistic description, I'm afraid. If this company is remotely ambitious about continuing to develop new oilfields then they'll need all the cash they can get their hands on. It's likely their debt burden will also increase in the near-term as they raise finance for forthcoming oil production (as per my previous post) - which means their flow of free cash is quite possibly going to be more like a trickle for the first couple of years.


Still, WDIK - PDYOR.

just been on the other side and someone has pointed out that the government takes 44.5% of the 7000bpd so looks even less appetising

Yep - I wasn't aware of the exact figure, but some kind of royalty is normal practice. 44.5% is probably the highest I've seen, but I believe even in the good ol' British North Sea, Gordon Brown creams off a 40% royalty.

FYI my fag-packet calculations were done with a post-tax profit figure of 15% of a conservative per-barrel oil price (applied to the whole 7,000 bopd), it takes account of the royalty as well as production costs). Anything more than that and the figures become too fantasaical for my liking.

Maybe I'm thinking too conservatively; I know you'll make up your own mind.

It is not easy for FAO right now but excellent management is the key. Fingers X
Cautious investors will sell at this point. that's ok
Aggresive investors will keep buying, ie myself
Willing investors checking their blood pressure with all these ups&downs.
Very entertaining drama. Enjoy it.

JOHN BENTLEY
New Executive Chairman of FAO as of 1September 2006
He replaced Mr Brian Menell

Mr Bentley, age 58, has over 30years experience in the natural resources business and for the last 12years has worked in the upstream oil&gas industry in Africa. ......he served as CEO of ENERGY AFRICA for five years building it into one of the leading independent upstream companies in Africa with operations in 12 african countries. During this period, the company saw fourfold increase in production and made several important discoveries.
best luck

so you really think that the new CEO has a magic wand?
do you also believe in Peter Pan?

CYNIC,i am so F>>>>> on these!!!

capetown - sorry to but in, but did you not own CSH as well last year and get F>>>>>d there too or was that someone else with a similar name?

If you search you will see I started a thread some while ago, but abandoned it once the details bcame clear as to what they had, where they were going and how they were financing it.

The cash could still do them imo.

Hello, it looks like something is a foot here, down doible figure percentages.

SEAWALKER,only just got in these @2.50,Never owned CSH,

Cant believe they are falling like a stone,

Will hold for the longterm now i guess.

sorry spelt your name incorrectly seawallwalker

Cynic, I believe Peter Pan sits on the board of Stanelco.


As a non-exec, obviously. He also has a position at Euro Home Retail (EHR).


I will keep watching - some of these oilers recover nicely once production occurs, but watch out for sources of dilution including fundraising and joint ventures.

Capetown, commiserations on your loss, but I have to wonder what it was that persuaded you to buy when everything from the chart to the company's financial position to the time to production and the state of the overall market is so bearish.

This stock will doubtless pick up eventually, but like our Loser of the Year SEO, there's no telling how low it will get before that happens.

Suggestion: in May, a number of oilers were valued at around a third of their risked assets (NPV/NAV). Which isn't much. This one could well do something similar, plus there's the problem of its insufficient cash position.

The old adage about not trying to catch a falling knife was probably never more applicable, IMO.

Seawall, good to see you on here. I have a feeling we could exchange some useful correspondence about this one and maybe come up with a winner in due course?

SOUL,i really did think i was buying on low and the price would hit 3p again as it held well on the RNS,having said that it can rocket north as quickly as it has south,

My saving grace for now is that i dont have to sell them,looking aty bthe i mill trades @3.10 couple days ago is scarry!!

capetown

I Know what you mean, I to got in at 2.78 but got some more to day @ 2.00

Guys, I thought I enjoyed a risky stock, but you're frightening the pants off me!! :o)

BTW, Smiler, thanks for your mail - will keep an eye on it as you suggest.

Smiler o,i am thinking of getting more but only @1p,

won't have to wait long looks like!

what's causing this sell off?

only following intermittently since getting out at 3.85 in January.

sd

Capetown

I may do the same, still have not got too much in FAO at the moment : )

Soul traders no problem, I am hoping !!!!! for 5/6p by Xmas : 0

speculating over the road fundraising at 1p !!!!!!!!!!!

Goodpoint MADDOCTOR,i am soooh tempted to top up but waiting,sure i will miss the bottom price!

Stockdog, my post #193 and following offers a suggestion that may answer your question.


Smiler, you have to be pulling my leg. I can see how this stock might be worth 5 or 6p if they hit their production targets and manage to contain dilution of the share base and nothing major goes awry, etc., etc., but there is no way it will do that by Xmas.

Currently the company is producing diddly-squat and what production they do anticipate has been pushed back by six months. And you know how these things can continually slip.

Capetown's suggestion of 1p is far more likely, IMO.

capetown , if your holding you might get your 1p :-))

SOUL why do you think the sp held so well after the rns? it did go up actually

Capetown, this won't rocket away the way you think it will, IMO. I know it was a tenbagger or thereabouts from early 2003, but times have changed and the market is not nearly as gung-ho as it was then. The fundraising could be a drag on the SP as well.

Peter Lynch says that it is often better to miss the first move in a stock so you can be sure of where it is going. I'd definitely want that certainty in this case, unless I was investing money I could really afford to lose.

ST

I was not referring to FOA : )

can't remember why i did not waste some money on FAO; i usually pursue duds like a ravenous wolf! ..... Perhaps i thought this was the company in which Phil Tuffnell + Mugabe were involved; if it isn't, which am i thinking of?

Capetown, I think the reason the SP went up on the day of the RNS is because so many hopeful speculators piled in on the stock at once. Then reality set in and down it went.

FWIW the SP actually closed down 1% on the day of the RNS and regained that loss the following day, which hardly makes a convincing case for the RNS producing a major change of direction in the SP.

When something has been going down as hard and fast as FAO, the odd pause for breath is inevitable.

Sorry, but I think this stock needs something more concrete in terms of news (i.e. production actually taking place or even financial results containing decent revenue figures) to halt the slide.

Smiler, I know that - it was QES. Quite the worst idea for a cash shell I have ever heard of. Hopefully the medical diagnostics thing will prove to be more successful.

As a general rule it's best to take a hit and move on. Inevitably several years later the price comes back, but learn the lesson and quite possibly you'll make more in the intervening years.

Of course, they could go bust too in which case you never get the chance to recover your losses.

Never an easy choice, but topping up should never be your first choice IMO until you know what the hell is going no - something sure is here!

LOOKS like i will not get my 1p for now

Cynic, aren't you referring to White Nile (WNL)? Although Tufnell has some fingers in a few pies.

Well one other snippet is that Evil has been short since 6p , so could be a rapid turn around as he closes

st

the way things are going >>>>>>>>>> God knows !

Interesting point MD - but just because EK closes doesn't necessarily mean it's buying time.

NOW whats going on with ZERO spread for nearly 5mins?

soul* ...... quite probably; thanks

Well hats off to those who bought @1.60 this am and now selling @ near 2p

fish can fly, will not stop buying

and the Titanic is unsinkable too

capetown - good luck with this.

Overall, I can't see where it's going, the fundraising and dilution both of which must happen for production to occur is a worry.

I won't be buying soul, it's a shame the way things are set up, because it could be a winner without so much fund raising to get going.

Still could be if they have a drilling surprise.

Without that it will be a bit of a slog for a while.

georgetrio-------welcome back.
2517

2517george
thank you, how much oil did Max petroleum come up with today cynic? a mere 180bopd. FAO will be producing a minimum of 7000bopd fact. I repeat FAO will not only rise but jump and fly like free bird. watch this space.

HI georgetrio

I to got some more today : )

7000bopd but with these cost implications.

3.6 East Orovinyare Exploitation Permit
PSC Summary
PSC effective date: -16 Feb. 2004
Duration: -10 yrs + 5yrs + 5yrsRoyalty:-5% of production up to 10,000 b/d -8% of production between 10,000-20,000 b/d
Production Sharing: -State share = 32% of profit oil up to 10,000 b/d-State share = 40% of profit oil10,000-30,000 b/d
Cost Recovery:-Up to 75% of net production
State Participation:-7.5% upon production

Work it out yourself.

looks like the government will make money! :-)))

Sealwall
Tell me how many companies are producing 7000bopd.
the fact is when a company is oversold and undervalued one must buy aggressively. Now there is a risk, but it does not need to be risky. when people pays 10p or 20p or 30p or 40p for a company that does not produce even a drop of oil, i think that's crazy.

YES, the goverment need to make money otherwise one day when the regime changes they will cast the company out. Check venezuela, check chad. The best thing to do is to have a fair deal if there is enough oil in place. The governments are not stupid. the old days when companies come and make big profit and run off with everyting are over.

georgetrio, we are 12 months away from production and finance has to be raised in order to reach that production.
2517

SMILER
hi, nice one, the risk is big and must be handled but common sense is FAO well undervalued.

2517george
yes, i hate the fact that the date of production has changed, q1 should be perfect but i think the new team is trying to avoid the mistake of the past when they said one thing and did it differently. i suspect they will start production before that. More fund are needed and they have been honest about it, not easy for longterm investors though. There is still the onshore asset and eov4 and some more upgrade to increase production. The key will be excellent management. best luck

if anyone is toying with the idea of investing here, at best i would suggest you wait until there is a sustained change in the direction of the momentum

Seawall, thanks for the figures breakdown - I have to say that looks a lot better for the botom line than the 44.5% somebody quoted!

The kicker right now is going to be the fundraising - the possibility of hefty dilution via a placing versus that of less dilution but a chunky interest burden if convertibles are issued.

soul* .... lest you have not seen it, you have e-mail

Welcome soul.

I'm really unhappy about the fund rasing, thats why I will leave it for now.

Worth watching though as things may change for the better very quickly, as I said, if they have underestimated target volumes.

Quite possible as the information was old from Marathon.

So; watching.

Cynic - thanks, will take a look.

CYNIC
that's sensible advice and most people here have different strategy, some are day traders, some longterm investors, or aggressive risk takers, but everybody will decide for themselves at the end of the day but different views are ok. Sometimes is more dangerous to invest in a rising share because you pay high price for something that is overvalued and i will prefer to pay less for something that is undervalued. It is a better risk. i feel sorry for people who bought yesterday cfe at 4p just to see it today at 2p. i bought it at 1p when nobody talks about it any news paper.

just quoting somebody on advfn , no axe to grind

should know better than repeating stuff from over there - ends here

although there tends to be a natural aversion to buying stocks when they have started to move up, that is in fact often the time to buy, having vtaken taken several other factors into account.

to assume that just because a stock has fallen to (say) an all-time low, does not make it undervalued; all too often there is good reason

CYnic
yes, you're right, and i agree, i believe everyone will do their due diligence before investing, like the taxes, we can not avoid risks. If fao comes to the market for the first time with their asset without any oil in view for a price of 3p, nobody will say is to much to ask for. management must perform.

TITLE: WINTER WARMER by Steven Frazer sourced: Shares mag of this week
"There was also upbeat news from Russia for relative newcomer URALS ENERGY (uen:aim). Just a year after floating on the junior market the exploration and production firm has hit targets set down at its IPO - for 2007. Urals is well ahead of schedule with flow rates hitting 10100bopd, just shy of the 10500bopd output set for year-end 2007. Investors can expect 13000bopd by the end of this year and as much as 19000bopd by close 2007, which will be pretty impressive.

Similarly upbeat on production volumes is FIRST AFRICA OIL (FAO:AIM), which thinks it is set for initial production rates of over 7000bopd from its East Orovinyare field offshore Gabon.
Drill testing of four development wells saw combined maximum test flow rates of over 10 000bopd, says First Africa, and full production is pencilled in to start in Q3 2007."
Please note that this not an invitation to buy, sell or disregard what i like to call juicy litlle fish FAO.

just be aware that Q3 2007 is a full 12 months away

yes cynic, patience is not easy in speculative investment but little fishes need time to grow. i am angry that it moved to q3 as q1 not far but i believe the will start production in q2 or at very early q3. will see. there is also the ONSHORE asset coming up and the maximum flow per day of eov4. will keep buying.

GEORGETRIO

Much better day today for fao

capetown
i agree, as each day passes, so near will be the production and we expect the sp to come up and above all, management to focus and deliver the goods. best luck

BEATING THE PROS

So how can a private investor hope to find a share that the massed guns of the investing institutions have missed, and how can his jugement be better than theirs?

One important point to remember about blue chips is that small investors are most unlikely to ferret out some fact which the professional analyst have overlooked. Where you may score is by using your common sense to arrive at a blindingly obvious conclusion the analysts haven't recognised; sometimes the professionals can't see the wood for the trees. But academic research in America has shown that the better researched a company is, the more efficient the market. That means that small investors have a better chance of finding a winner amongst neglected smaller companies. The risks of small companies are higher, but so are the potential profits. Going against the fashion with your timing is another possibility if you can spot a trend early you can do well. BEST LUCK TO ALL eagle eyes investors

"We are trying to buy growth at the right price" Colin Mclean
The ultimate value manager with a twist and winner of numerous awards from The Mail on Sunday, Money Magazine and Money Observer among others.

Any ideas as to why the spread is so wide before trading starts every morning?

Do or are the mms expecting news?

Don't know about any news but anything is possible. the support is evident and above all the earning power of this little fish is about to see heavens. Will stay put through this transition. best luck

Cheers G

Even though, the way up is difficult, you will not give up, my little fish, where as you have been forsaken and no one care for you, my little fish fao, soon they will ALL gather and admire your rising. Fish can fly. Best luck to FAO

BIG WARNING

DO NOT KEEP YOUR EAGLE EYES OFF THIS ONE.
The company is now in a transition period where lot of things are being reviewed mainly the market perception of FAO. New board is in place busy to do just that as they understand that it is not only having plenty of oil in place or a plan to deliver 7000bopd in Q3 2007 but to be in tune with the investors. Mistakes do happen but one must not repeat the same mistake. Now everything is in place, we can only move foward knowing that our earning power is about to rise seriously wheter the oil price is $40/barrel or $50. Once FAO regain the trust of the market or its confidence everything should be ok. If the market loves a company and trust the management the future of the business is rock solid. Like i said before Fao will rise but also jump and soar like a free bird. Fingers X. Best luck to FAO.

Recent AFX news relating to FIRSTAFRICA ORD 0.1P
FirstAfrica Oil appoints Mark Callaway as CFO, replacing Robert Rainey

LONDON (AFX) - FirstAfrica Oil PLC said it has appointed finance manager and group financial controller Mark Callaway as chief financial officer, replacing Robert Rainey.On Sept 4, the company had announced Rainey would become a non-executive director once a replacement chief financial officer was found.newsdesk@afxnews.comcmlCOPYRIGHTCopyright AFX News Limited 2005. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly ...
Tuesday, 26/09/06, 10:59

g .i just got back in.

guess i will never learn but it seems to be stable @2 just like it was at 3,so lets hope now that i am back in it does not dive to1p

Good luck to all holders

Hi georgetrio, hows things with you , toped up at the last drop with FAO, BLR IS ALSO down a bit !!

smiler o

i hate the month of september because it is usually boring and bears are very busy which alter the real market health. to be honest i reduce on BLR a bit but i am still in. no doubt i will be buying more maybe end of december if things remain on course. i did buy more FAO but it looks like the sp need more support around 2p to head to 3p before leaping. that will happen if the market perception changes. i am looking at TRP which another little fish but the spread is not friendly at all. SOUND OIL (SOU) looks promising too and i bought it. Nevertheless i think for this period CFD shorting is very rife. Best luck

Capetown
It looks like the bears are having the upper hand at the moment before they get squeezzzzed like lemon. Not easy but management must work hard to bring back excellent news and the feel good factor. Best luck to FAO.

HAPPY: Lucky, fortunate, prosperous, successful, enjoying pleasure from fruction
or expectation of good, contented, satisfied, felicitious, favourable,
slightly drunk. best hapiness to FAO.

How long more before we see 6p a share or 12p? bounce back and shine.
though the night comes, there will be another sunny day. see and see through

1.15 ?????????????????????????? LOOKING AT TO DAY Georg may take a while

A huge dilution like this sould surely dilute the SP by a half. Time to buy, dump or what?

Georgetrio, Now those shorters are laughing all the way to the bank, how did they know?????

Logically this dilution would more than double the number of shares so I can see it sliding to 82p (or 72/92) if the proposal is passed, if it isn't passed then I suppose projects will stop and the only solution would be a takeover. Please tell me I'm wrong as I bought at a much higher price! ther was no inkling of a huge chash call to more than double the Capital. Anyone know what the NAV is?

rpaco - 04 Oct 2006 10:33 - 279 of 281
A huge dilution like this sould surely dilute the SP by a half. Time to buy, dump or what?

Take it from me that you do not chase the sp of a share down with the intention of decreasing you average.

I sold a long time ago as this was obviously going to happen and I said so.

Whether you hold or sell has to be a personal choice.

I will add that the next most obvious thing to occur is a share consolidation to reduce the amount of paper flying around.

Rpaco

"ther was no inkling of a huge chash call to more than double the Capital. "

What about the second paragraph of the Interim Results, released 29th August?

"The capital expenditure programme for the EOV project totals US$90 million and further funding for the project will be required before oil production comes on stream at the end Q1 2007. The Company continues to review options for sources of funding for the final phase of the project, including project finance, trade finance and/or further new equity. "

That, plus the fact they only had $607,000 cash versus $50 millions' worth of creditors on the balance sheet, ought to have set alarm bells ringing. I believe I discussed this in detail on this very thread a couple of weeks ago, but as usual, nobody paid any attention.

As far as the NAV is concerned, total net assets were approx 70 mil when the results were released. I know that the market cap is less than half of this, but until the fundraising issue was resolved, there was never going to be more than a gambler's hope of catching this falling knife without getting one's fingers cut.

My sympathies to anyone who's lost money on this one, but it was all on the cards and/or in the fundamentals for anyone who cared to do their homework.

i have not checked in full the latest news but that does not bother me as i remain invested. not selling any of my fao share. in this case i knew the risk level is very high but to win one must accept to lose too. the transition of fao is not easy plus the oil price falling, that's ok. the delution is not a surprise, FAO has been honest about it but at this stage please do your homework before investing. in my view the best outcome will be for the sp to hit the lowest level, clear all the mess and restart afresh. Best luck to fao.

rpco
yes on this occasion, the shorters are laughing all the way to the bank. however for those investors who bought fao but control their risk by buying a traditional put options in fao or another put to reduce the risk that's not bad. the loss is just the inverse of the win and one can not always win or expect to win at all times. It is to early to underestimate FAO. best luck to myself

Doh!

rapco
doh!

None of the brokers I have used do put options.

I do trade covered warrants and listed CFDs though and do use puts by that means. Though obviously these are issued on only relatively few equities.

Which broker do you use, because I am having problems with Barclays CW prices staying frozen through highs for up to an hour while I see the live price on the SG site move me into unreachable profit.

georgetrio - you must have more money than sense. As for the following tripe:

control their risk by buying a traditional put options in fao or another put to reduce the risk that's not bad

You're full of it!

;-0

big al

Just because there is risk, it does not need to be risky. sometimes strange things do happen but understanding is the solvent of all. every investor has a plan, and i have my plan in this sweet and sour game. people should follow their own plan. Keep your sense to yourself.

un point de vue est un point d'aveuglement. Blaise Pascal.

Go a hatful blind, Georgetrio!!!

Georgetrio,

Mais que fait-on des petits poissons qui ne volent pas comme il fallait?

soul traders
cheers, give them a chance to grow their wings. it takes time.
seriously, for those who bought FAO at its peak, i can not blame them for being angry. My plan with FAO is to buy more anytime the sp is falling because there will be consolidation but only between 0.01p to 3p. i am buying lot by lot instead of in one go because the company is in transition ie high risk.
best luck. laisser les petit poissons grandir, faut pas les tuer.

you got some seo as well????????

Stockdog

Go a hatful blind, Stockdog!!!

maddoctor

No, i don't have SEO but i have another dangerously high risk which is BLL. And I am not selling any of my BLL.

georg , just jesting , same chart , same fund raising issues - funds or bust?

maddoctor

you are the doctor may be you can help. i think in this case patience is required as we have a new management trying to clear the mess of the previous one. at this stage those whose don't like dangerous game should stay away till the knife reach the ground. The best thing is for the sp to hit the ground and restart afresh but it will not go bust.

georgetrio So which broker?

georgetrio So which broker?

rpaco
i use shareviewdealing.co.uk, halifax.co.uk but i use more hoodlessbrennan.com

I'll never understand people who buy downtrends in obviously risky situations - lambs to the slaughter more often than not.

What is the point when there is consistently easy money to be made (and lots of it) in so many other (opposite) ways?

I think you're bloody mad! ;-))

8. Risk Factors

. In the event that the Company does not raise any funds in the Placing and the Company has not been able to arrange alterative sources of finance by the end of October 2006, it will be unable to continue to trade. If the Company can raise some but not all of the US$53.9 million required, then the Board will make a commercial decision at the time as to what minimum funds are required in order to continue to trade.

. If the Company cannot raise the US$25 million debt finance as stated in paragraph 2 above then the Company would have to raise further equity funds and/or arrange alternative sources of finance.

. The size of Energems holding in the Company is such that it has the ability to vote down Resolution 3. Energem has chosen to reserve its right to consider the Resolutions at the time of EGM in light of the funding opportunities available to the Company at that point.

. The nature of reserve quantification means that there can be no guarantee that estimates of quantities and quality of oil stated as recoverable can be extracted or that extraction, if possible, can be undertaken on a commercially viable basis.

. Delays in the construction, commissioning and general development of the Companys projects or other technical difficulties or natural hazards may result in the target dates for production being delayed and/or further capital being required beyond that envisaged at the date of this document. For instance with specific regard to the development of the EOV Field, there is no guarantee that a contract to lease the FPSO or a jack-up rig can be agreed.

The risks above do not necessarily comprise all those faced by the Group and are not intended to be presented in any order of priority.

http://www.firstafricaoil.com/UserFiles/File/Reports/October_fundraising_circular.pdf

HI GEORGE
les petits poissons vont crever si l'augmentation de capital ne rssit pas
c'est pas Pascal mais alinox

I 是或許如此為什麼心煩不講那些在任何情況下, 為什麼必須繼續寫以外語, 您不知道是否? 回到首先被定量關於油的論據非洲

swank!

At the end of the day, the price of this share has halved in a week. It's throwing money away.

小便入風的人通常將得到它返回到他

ChTr/Eng

"Risk Factors

. In the event that the Company does not raise any funds in the Placing and the Company has not been able to arrange alterative sources of finance by the end of October 2006, it will be unable to continue to trade. If the Company can raise some but not all of the US$53.9 million required, then the Board will make a commercial decision at the time as to what minimum funds are required in order to continue to trade.

. If the Company cannot raise the US$25 million debt finance as stated in paragraph 2 above then the Company would have to raise further equity funds and/or arrange alternative sources of finance.

. The size of Energems holding in the Company is such that it has the ability to vote down Resolution 3. Energem has chosen to reserve its right to consider the Resolutions at the time of EGM in light of the funding opportunities available to the Company at that point."

Sounds like there is no alternative but to support the fund raiseing.

Of course with Emergen holding over 30% they could block it and put FAO into receivership, and then buy the EVO project at a discount.

Or isn't that ethical?

It's business!

Georgetrio
Do HB or SVT let you short on margin?

Brief article on FT.com today.

GO THERE

Interesting snippet soul traders.

Let me get this straight. They undertake a 3rd fundraising this year to pay for presistent cost overruns on a field development. It might be alright to underestimate costs once, maybe even twice, but to come back to the shareholders/banks any more than that surely proves incompetence. I'd want to knoew a far fuller story here.

I wouldn't take up the rights, but I would sure lobby for removal of all involved in running this operation as they obviously haven't a clue.

FAO should be left to go bust IMO.

Not sure all the share holders would agree !!

I wouldn't expect all shareholders to agree, but I'm at a loss to understand why anyone would wish to become a shareholder in an outfit that asks them for dosh evey quarter as regular as clockwork. That's nuts.

Far more downside than upside for now IMO.

Many have strong view about Fao, that's perfectly ok but we should still put our view forward in a constructive ways without spoiling this thread.
1/ some think Fao should be let alone to die
2/ some think it is crazy to remain invested
3/ some think everything is impossible
4/ some think everything is possible
5/ but i think if it hit the ground but survive it will bounce back. this might not be everybody's view but that's my view and i am responsible for it.
Unless the seed goes into the ground and die, it can not come up as a plant.
now how many oil companies oft he size of FAO will be producing at least 7000bopd? The previous management has shown excellent skills in poor financial management but now there is a new team taking drastic mesures to reverse the downtrend. please note that the risk is very high now and if you do not have the stomach to lose your money stay clear. i remain invested even if i lose.

ALINOX

the point you made last time is correct and it is true. the little fish may die if the fund raising did succeed but that is true for many little fishes but in this case even though the risk is at it peak it becomes more interesting because if the little fish survives it will fly. again the little fish has changed waters ie new management. i would have sold my holdings in new management is not in place.
At this stage fao is high risk fish for high risk fish lovers only.

rpaco

the best for short on margin is: www.cmcmarkets.co.uk ....margin is 5%
there is also www. city index.co.uk.
for futures & options check www.sucden.co.uk or www.admsecurities.co.uk

The size of the Placing finally
agreed with the Board may be reduced if the Board is successful in negotiating
other sources of funds currently being pursued, including possible joint venture
agreements with other oil companies. Therefore, in the event that the Company
raises the necessary funds on more beneficial terms than through an equity
fundraising, the Placing will be reduced accordingly.

Further announcements in relation to the Placing will be made in due course.

WHY MORE FUND?
More specifically, the additional costs relate to the following:

* the actual number of days drilling in the initial drilling programme was
more than estimated, primarily as a result of the decision to access deeper
oil bearing structures on EOV-7;
* the first sale of oil from the EOV Field via the FPSO is now estimated
to occur in the third quarter of 2007 requiring extra working capital prior
to sales of oil;
* to secure the FPSO the Company now anticipates the prepayment of
operating expenditure rather than the provision of a bank guarantee,
resulting in the increase of initial operating expenses, albeit these costs
are recoverable when the sale of oil commences;
* a power generation unit is required for the FPSO;
* additional well completion costs to acid treat wells EOV-4 and EOV-7;
and
* the requirement to meet early Epaemeno exploration commitments prior to
cash flows.

Please note that Epaemeno is the Onshore asset not offshore asset

why the production date has been changed from Q1 TO Q3 2007

Expected timing for production and first sale of oil has been delayed to the
third quarter of 2007 primarily because management was not able to progress
negotiations to secure the FPSO until the Company had the results from the
extended drilling programme which gave the Board confidence that the number of
barrels of oil that could be recovered daily from the EOV Field was sufficient
to make the development of the field economic.

georgetrio - get the financing all should be fine.

Time will tell.

Seawall

Fingers crossed, all depends on excellent management. Yes time will tell

Talking about the onshore asset now in exploration stage

Update on Epaemeno

Epaemeno is FirstAfrica's wholly-owned onshore Gabon exploration block which
lies to the north of Shell's recent discoveries in the Awoun block, to the east
of Perenco's discoveries in the Ombena block and to the west of Maurel and
Prom's discoveries in the Omouejy block. ECL's Epaemeno Block Assessment Report
dated 24 January 2006 confirmed the prospectivity of the Epaemeno exploration
licence. ECL's re-interpretation of previous Elf seismic data in this report
identified 6 prospects in the Epaemeno block with a total of 228 million barrels
of unrisked Prospective Resources (recoverable). Based on 'Chance of Success'
estimates of between about 1-in-6 and 1-in-10, these prospects have a combined
Expected Monetary Value of approximately US$280 million, based on an oil price
of US$55 per barrel and a discount rate of 10 per cent..

Please note that the Q3 2007 production is only on the OFFSHORE asset.

Words ending in a vowel followed by 'o' to steer clear of:-

SEO
FAO
georgetrio

'scuse me whilst I choke on a little fish that's being rammed (ramped?) down my throat!

sd

WHY MORE FUND?
More specifically, the additional costs relate to the following:

* the actual number of days drilling in the initial drilling programme was
more than estimated, primarily as a result of the decision to access deeper
oil bearing structures on EOV-7;
* the first sale of oil from the EOV Field via the FPSO is now estimated
to occur in the third quarter of 2007 requiring extra working capital prior
to sales of oil;
* to secure the FPSO the Company now anticipates the prepayment of
operating expenditure rather than the provision of a bank guarantee,
resulting in the increase of initial operating expenses, albeit these costs
are recoverable when the sale of oil commences;
* a power generation unit is required for the FPSO;
* additional well completion costs to acid treat wells EOV-4 and EOV-7;
and
* the requirement to meet early Epaemeno exploration commitments prior to
cash flows.

Please note that Epaemeno is the Onshore asset not offshore asset


georgetrio - I copied the above so I could highlight the points and then make comment. As someone with moderate experience in the oil industry I'd have to say all the above, if true, are the result of very poor planning, some might say negligent.

Who on earth would secure an FPSO without a power generation unit?

Who would not have contingency built in if there was a requiremnent to slightly extend the drilling (mind you, I fail to understand the need to access further, deeper formations if the field is properly proven).

The exploration commitments would/should have been known at Epaemeno.

Acid treatment is expensive, but not that much. BTW, I've just been exposed to that. Successful acid jobs, i.e. in increasing production short term are infrequent - fact! Also, the work ain't that expensive it requires a placing, trust me!

The prepayment for the FPSO should have been known about when it was secured - it's all part of the tender process. If they signed and found out after, then .................!!

Anyway, why's the first oil date gone back minimum 6 months? Not smart, not clever.


Sorry, but either you're full of it or they are.

big al
thanks for bringing your view forward. like i said before FAO has a lot to prove at this stage and only excellent management can sort out the mess. i remain invested knowing the risk is very high.

stockdog

rammed down your throat? not sure about that because the first thing investors do is to decide. make your own decisions because is your money. i do not think people are stupid to invest without doing their own homework. do me a favour stay clear of FAO because the risk is very high

georgetrio - hope you keep it small then. ;-))

georgetrio - even though I started this thread 18 months ago, be assured your incessant voluminous one dimensional posts make it all yours!

the point about threads is to share them to learn, exchange ideas, be sociable, etc . . .

good luck with talking to yourself.

sd

BIG al

will do, no worries.

stockdog

georgetrio - even though I started this thread 18 months ago, be assured your incessant voluminous one dimensional posts make it all yours!

the point about threads is to share them to learn, exchange ideas, be sociable, etc . . .

good luck with talking to yourself.

sd

Recent Major Shareholder Transactions Click to sort by Holder
Date Holder +/- Amount Shares held %
05-07-2006 Capital Group Companies + - 282,713,582 10.5700
03-07-2006 Fidelity International Limited - - - 9.4500
29-06-2006 Capital Group Companies - - - 9.3300
29-06-2006 Tudor Capital - 90,189,236 3.4600
20-06-2006 Fidelity International Limited - 246,154,000 10.5900
16-06-2006 Capital Group Companies + 124,353,800 243,140,800 10.4600
16-06-2006 Merrill Lynch Investment Managers + 56,000,000 158,745,813 6.8300
27-07-2005 Capital Group Companies - 118,787,000 7.9900
25-07-2005 RAB Capital - 108,787,000 24,640,183 1.6600
10-02-2005 Gartmore Investment Management - - - -
10-02-2005 Merrill Lynch Investment Managers - 102,745,813 6.9100
08-02-2005 Morgan Stanley Securities Limited - - - -

Georgetrio
My investments in FAO were based on researching the data available at the time and obviously could not take into account the incompetance of the FAO management. and there is always some risk we all know that but when it does go tits up you dont need someone smugly pointing out that fact !. put them in the bottom draw and see what they are doing in 12 months, if there still going :) LOL

smiler
cheers. good point, time will tell. best luck

"11 October 2006

FirstAfrica Oil plc ('FirstAfrica' or 'the Company')

Proposed 1 for 50 Share Consolidation ('Share Consolidation')

FirstAfrica announces that yesterday it posted a circular to its shareholders
relating to a proposed 1 for 50 share consolidation ('Circular')."

Inevitable result of having too much paper.

Oh well ! 50/1 lets hope for the 50p mark

Sometimes it must get worse before getting better. eagle eyes must be zoomed on the management. not bad start though but a lot to do yet. best luck.

FirstAfrica Oil PLC
26 October 2006

26 October 2006

FirstAfrica Oil PLC ('FirstAfrica' or the 'Company')

Update on Placing to raise up to US$53.9 million

On 4 October 2006 FirstAfrica announced its intention to raise new equity funds
of up to US$53.9 million (before expenses) to enable further development of the
EOV Field and provide working capital for the Group by way of a placing to
Qualifying Investors (the 'Placing'). The extraordinary general meeting
scheduled for today at 10.00am to approve, inter alia, the issue of up to
5,734,042,400 new ordinary shares will go ahead as planned despite the Placing
not being finalised and the placing price announced. The closing of the Placing
is expected to be delayed for up to two weeks pending the following:

the finalisation of the audit of the Company's reserves by Netherland
and Sewell Inc.; and
agreement in principal on a US$25.0 million debt facility, for which
discussions are continuing.

Due to the board's cash management policies and confidence in completing the
Placing it believes that the Company can continue to trade.

If the resolution required to effect the 1 for 50 share consolidation is
approved at the extraordinary general meeting convened for 11.00 am today then
the Company will proceed with the share consolidation only following the
finalisation of the Placing and the issue of new ordinary shares.

Shareholders will be updated as appropriate in due course.

FAO shares suspended pending clarification of financial position mmmm.
2517

That will be another one lined up against the wall then?

FirstAfrica Oil PLC
15 November 2006


15 November 2006

FirstAfrica Oil PLC ('FirstAfrica' or 'the Company')

NSAI Reserves Report

Further to the announcements made on 26 October 2006 and 9 November 2006,
FirstAfrica announces the finalisation of the reserve audit carried out by
Netherland, Sewell & Associates ('NSAI') on the East Orovinyare Oil Field ('EOV
Field'), offshore Gabon.

Oil Volumes

Following the completion of the drilling programme in the EOV Field, NSAI
conducted an audit of the Company's reserves. NSAI, which finalised its audit
report on 13 November, conducted a full review of the reservoir structure and
drilling results and calculated production profiles for each of the wells. Due
to time limitations however, NSAI did not develop a full economic model and so
have produced results citing the SPE definition of 'Contingent Reserves' as
follows:

Level STOIIP Unrisked Gross Estimated
(MBBL) (100 Percent Recovery Factor
Contingent Oil (pct)
Resources
(MBBL)
Low Estimate 16,352 4,096 25.0
Best Estimate 23,590 7,394 31.3
High Estimate 30,647 12,371 40.4


The 'Best Estimate' resource figure of 7.4 million barrels compares with the
previously estimated 10.5 million barrels (2P) reserves. NSAI's estimated
barrels of oil reflects the following:

The adoption by NSAI of a slightly lower STOIIP volume as the basis of
their estimate; and
The application by NSAI of a lower recovery factor.

The board believes that the economics as stated in the circular to shareholders
of 3 October 2006 are not supported by the revised resource figures provided by
NSAI stated above. The Board is therefore carrying out a re-appraisal of the
best way of developing the EOV Field and is actively pursuing a number of
different options for financing the company's activities going forward.

FirstAfrica's ordinary shares remain suspended on AIM. Further announcements
will be made in due course.

OF Interest


15 November 2006
European stocks dip on high oil prices
Reuters

European shares eased yesterday as rising oil prices weighed and investors cashed in recent gains from the nearly completed earnings reporting season, amid scepticism that markets will move higher.

"For the first time since early 2004, more investors now see equities as overvalued as opposed to undervalued," Merrill Lynch said in a summary of a global fund manager survey.

Among few notable gainers was Spanish telecoms firm Telefonica, which advanced 1.2 per cent after raising its 2006 forecasts following solid earnings in the first nine months. The pan-European FTSEurofirst 300 index fell 0.4 per cent to 1,461.48 points, mirroring activity on Wall Street where the Dow Jones industrial average fell 0.3 per cent.

Despite yesterday's dip, the index of leading European shares is up nearly 14 per cent so far this year on a boom in takeovers and solid earnings. It hit a 5-1/2 year high of 1,473.4 last week.

Across Europe, the FTSE 100 index fell 0.1 per cent, Paris's CAC 40 was down 0.3 per cent, and Frankfurt's DAX lost 0.1 per cent. A drop in US core producer prices and a smaller-than-expected decline in US retail sales briefly eased inflation worries but failed to provide a lift as many investors are growing sceptical about whether equity markets will move much higher.

"Investors continue to struggle to see how corporate profits can surprise positively over the coming year," Merrill Lynch said.

"With equities up almost 10 per cent over the past three months, valuations have taken the strain," the bank added.

Analysts said high oil prices, up 0.4 per cent to $58.83 a barrel, also weighed on markets.

Swiss drug maker Novartis fell 1.9 per cent, extending a loss on Monday after it reported a delay for its key diabetes drug Galvus.

Deutsche Boerse was down 1.8 per cent after sources close to the Frankfurt stock exchange operator told Reuters it was seriously considering dropping its bid for pan-Europan rival Euronext.

BowLeven Plc
15 November 2006


NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN OR INTO
AUSTRALIA, CANADA, JAPAN OR THE UNITED STATES


15 November 2006


Possible Recommended Offer by BowLeven plc ('BowLeven') for FirstAfrica Oil plc
('FirstAfrica')


BowLeven announces that it has approached the Board of FirstAfrica with the
outline terms of a possible offer for the entire issued and to be issued
ordinary share capital of FirstAfrica (the 'Proposed Offer'). The Board of
FirstAfrica has indicated its support for the principles of the Proposed Offer.
The suspension of FirstAfrica's ordinary shares from trading on AIM was
announced on 9 November 2006 pending clarification of FirstAfrica's financial
position.


BowLeven believes the Proposed Offer offers attractive value for FirstAfrica
shareholders.


BowLeven holds interests in three blocks offshore Cameroon, one of the most
attractive oil and gas exploration areas in West Africa, and has substantial
experience within its management team of developing offshore upstream oil and
gas projects. There is clear logic in combining the asset portfolios of
BowLeven and FirstAfrica and using BowLeven's existing financial resources and
additional financing to be raised by BowLeven to bring, in particular,
FirstAfrica's East Orovinyare Oil Field offshore Gabon into production.


The Proposed Offer


Subject to the satisfaction or waiver of the pre-conditions set out below, and
on the terms and conditions to be set out in any firm offer announcement,
BowLeven is prepared to make an offer of one BowLeven ordinary share for every
190 ordinary FirstAfrica shares.


The Proposed Offer values the existing issued share capital of FirstAfrica at
approximately 30.2 million based on the closing price of 214.5 pence per
BowLeven share on 14 November 2006.


This represents a premium of 25.4 per cent. to the price of 0.9 pence per
FirstAfrica share at the point the ordinary shares of FirstAfrica were suspended
from trading on AIM on 9 November 2006 and a premium of 21.4 per cent. to the
average closing price of 0.93 pence per FirstAfrica share for the 30 calendar
days ending on 9 November 2006.


Pre-conditions


The pre-conditions to the Proposed Offer include:


completion of confirmatory due diligence to the satisfaction of BowLeven;
BowLeven raising the appropriate financing for the enlarged group; and
the formal recommendation of the Proposed Offer by the FirstAfrica Board.


BowLeven reserves the right to waive, in whole or in part, any of the above
pre-conditions at its discretion. In the event that BowLeven were to acquire
FirstAfrica it would assume its assets and liabilities at completion.


Other matters


BowLeven also intends to make appropriate offers to the holders of options.


This announcement does not constitute an announcement of a firm intention to
make an offer under Rule 2.5 of the City Code on Takeovers and Mergers (the
'Code'). Accordingly, there can be no certainty that any offer will ultimately
be made, even if the pre-conditions to the Proposed Offer are satisfied or
waived.

BLVN showing real worth of FAO?

;-)))

sad but true BIG Al !! :)

This is the flip side of all this oil speculation IMO. It ain't all up, up and away, folks!

As ever, it's the punters that get taken for a ride - usually downwards.

Big Al whats your thoughts on BLR ?

Know nothing about them, smiler o. Sorry

Where's georgetrio ?

His little fish is about to be swollowed whole and shat out again.

I reckon Emergen may have some say in this before the dust settles, the question is, do they want the EVO expense or not?

They hold just a faiir propotion of FAO in paper at 6pence per share, so they wont want to sell that off for less imo.

Doubt any bid will be anywhere near that, so also imo this bid will fail as BLVN have cash but will not want to pay more than, say 2.5p per share as it stands.

SWW I was thinking that a few days ago wheres george gone, 11th Oct his last post ?? I still hold 20000 shares, lucky i sold 70% at 3p for some erx ??

I'll let you know about ERX, I have a few too(very few).

georgetrio had lots of little fishes as I recell, and most of them from what I see are not doing too well, till now perhaps.

You know Ihad some FAOand dumped out a while back, I can't say even this development would persuade me to come back, (if they were not curently suspended), no Emergen hold the trump card here, they may want to wind FAO up in which case they get EVO for a fraction of the net worth.

Okay it more compicated than that, but I have always suspected Emergens motives in setting up FAO in the first place.

SWW---2.5P That would be a nice recovery, just below the 2.6p I paid for them, I suspect georgetrio has trouble with his/her r's, what he/she really meant was that these little fishes would fry, not fly.
2517

Time will tell me thinks, I also hold BLR a small tic up this week ?? :)

CORRECTION BowLeven approaches FirstAfrica with 30.2 mln stg takeover offer
AFX


(Correcting figure in headline)

LONDON (AFX) - Oil and gas company BowLeven PLC said it has approached FirstAfrica Oil PLC with a potential takeover offer, valuing the company at about 30.2 mln stg.

FirstAfrica's board has, in principle, expressed its support for the offer, BowLeven said.

BowLeven, which currently focuses on Cameroon, is offering one of its own shares for every 190 FirstAfrica shares.

Based on BowLeven's closing share price of 214.5 pence yesterday, this values FirstAfrica at around 30.2 mln stg, equivalent to a premium of 25.4 pct on the target company's share price of 0.9 pence prior to its suspension from AIM on Nov 9, it said.

newsdesk@afxnews.com

abr



COPYRIGHT

Share Price (p) as of 09/11/06 1.00
Shares in Issue (Current) (m) 53480000


Value put on FAO is 30.2 MIL

My idea of doing these sums is never too good but I think that looks like Emergens 6p is taken care of.

I have to be wrong, it can't be that good, maybe I am missing a decimal in which case they are stealing it for .6 of a penny.

Anyone?

Yep its's .58 of a penny

But if you divide the total shares by 190 then x by 214.5 you get value of
603 761.04 for company so what am I doing wrong and will we actually get 6p per share? Sorry to be so thick!

You and me both maggie!

Where did you get your figures from?

Mine are from here in Company research

I took them of your post But have checked and TDW give no of shares as 2930.8m if you divide that by 190 and x by 2.145 it works out at 3.3m so we're not getting 6p per share, pity I would have got my money back!!!!!!!

Sorry maggie, but was I close? or did they not say.

Thought 6p was toooooooo good to be true I don't have that luck but maybe the insts will drag it up for us anyway advise seems be be to take the shares.

FirstAfrica Oil CEO Robert Kirchner resigns
AFX


LONDON (AFX) - FirstAfrica Oil PLC said Robert Kirchner has resigned as chief executive officer with immediate effect.

His duties will, for the foreseeable future, be carried out by John Bentley, executive chairman.

The company asked to have its shares suspended on Nov 9 pending clarification of its financial position. On Nov 15, FirstAfrica received

notification from BowLeven plc of a possible offer for its entire issued share

capital. It said today that further details on the company's future will be announced shortly.

is not BowLeven under a cloud at best? ...... if so, is this not a bit like the dead asking for a brain transplant?

Sums it up I think.

Their reasons for going for FAO is to build a production platform on the cheap imo.

Emergen may have other ideas, and it won't be to outbid them.

FAO owe Emergen, plus Emergen have quite a large holding in the Company.

I will be surprised if this goes to BLVN.

BowLeven plc

for

FirstAfrica Oil plc


Summary of the Offer:


The Boards of BowLeven and FirstAfrica are today pleased to announce
that they have reached agreement on the terms of a recommended all share
offer to be made by Jefferies International on behalf of BowLeven for the
whole of the issued and to be issued share capital of FirstAfrica.

Under the terms of the Offer, FirstAfrica Shareholders will be entitled
to receive 1 New BowLeven Share for every 190 FirstAfrica Shares. There will
be no cash alternative.

The Offer values the entire existing issued share capital of FirstAfrica
at approximately 30.1 million (involving the issue of up to 14,082,602 New
BowLeven Shares) and each FirstAfrica Share at approximately 1.13 pence,
based on the Closing Price of 213.75 pence per BowLeven Share on 22 November
2006, being the last Business Day prior to the date of this Announcement.

The Offer, based on the Closing Price of 213.75 pence per BowLeven share
on 22 November 2006, represents a premium of:

- 25.0 per cent. to the Closing Price of 0.9 pence per FirstAfrica Share
on 9 November 2006, being the date on which FirstAfrica Shares were
suspended from trading on AIM; and

- 21.0 per cent. to the average Closing Price of 0.93 pence per FirstAfrica
Share for the 30 calendar days ended 9 November 2006.

The BowLeven Directors believe the Offer represents an excellent
opportunity for BowLeven in that:

- the combination of BowLeven's and FirstAfrica's respective asset
portfolios creates a significant, operated and focused West Africa
position;

- it will diversify BowLeven's single country exposure whilst maintaining
regional focus;

- BowLeven's management has considerable experience in developing
offshore upstream projects to apply to the development of the EOV Field
in particular;

- BowLeven intends to revise and optimise the field development plan for
the EOV Field;

- BowLeven's existing financial resources and additional financing can be
used to bring the EOV Field into production;

- the EOV Field should provide an opportunity for mid/near term cash flow
with first oil anticipated in the second half of 2008; and

- FirstAfrica's exploration potential augments BowLeven's existing 100
per cent. operated acreage position.

Irrevocable undertakings to accept, or procure acceptance of, the Offer
representing approximately 29.0 per cent. of FirstAfrica's existing issued
share capital have been received by BowLeven........


http://moneyam.uk-wire.com/cgi-bin/articles/200611230700525712M.html

How will they pay?

BowLeven plc ('BowLeven' or the 'Company')


THIS ANNOUNCEMENT, INCLUDING THE APPENDIX, IS NOT FOR RELEASE, OR PUBLICATION OR
DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES,
CANADA, AUSTRALIA OR JAPAN


23 November 2006


Proposed placing of 20,863,637 new Ordinary Shares of 10p each at a price of
220p per Ordinary Share to raise approximately 45.9 million and grant of option
to Suntera Resources Limited to subscribe, by way of private placement, for
5,500,000 new Ordinary Shares of 10p each at a price of 220p per Ordinary Share.............

http://moneyam.uk-wire.com/cgi-bin/articles/200611230700565713M.html

Values............each FirstAfrica Share at approximately 1.13 pence

which, given what appears to be the spread, means there is no profit to be made ..... no real surprise

will you have to sign any paperwork to accept the new shares in Bowleven or will you get them automatically if the Board approves the takeover/merger.
i will have a problem if i have to sign anything as the mail in iraq is very slow and would hate to miss out. these shares have bombed but if there is a way i could get a little money[aka new shares] back then it has to be worth a shot. my shares are held electronically by Hoods.
your thoughts anyone
Alex

AIM
07 December 2006



NOTICE

(857)

07/12/2006 7:00am


RESTORATION OF TRADING ON AIM



FIRSTAFRICA OIL PLC



The trading on AIM for the under-mentioned securities was temporarily suspended.
The suspension is lifted from 07/12/2006 7:00am, an announcement having been
made.




Ordinary Shares of 0.1p each (B020KB8)(GB00B020KB82)
fully paid






If you have any queries relating to the above, please contact the company's
nominated adviser on 020 7409 3494.





AIM Regulation

LONDON (AFX) - FirstAfrica Oil PLC said it has agreed to a 25 mln usd loan from BowLeven PLC to settle claims of existing creditors and to get FirstAfrica through the offer period it is currently in with BowLeven.

BowLeven last month agreed an all-share 30.1 mln stg offer for FirstAfrica. The debt facility agreed today is secured on the shares of the two wholly-owned

subsidiaries of FirstAfrica which own the East Orovinyare Block and the Epaemeno Block and by floating charges.

The companies said the facility is available until the earlier of the offer being withdrawn or lapsing and the offer becoming wholly unconditional.

In a separate statement, FirstAfrica said trading in its shares on AIM has been restored from today.

'the offer being withdrawn or lapsing and the offer becoming wholly unconditional.'

So it does not look like a done deal, if Bowleven walk away they will have an interest in the EO & E Blocks, obviously depending on how much over the 25 usd FAO have mortgaged themselves for, I think I would prefer it if FAO remained independent, but WDIK.
2517

Game over?

Of course it is.

Was a long time back.

EVO as I undersatand it is marginal anyway.

BLVN are not getting much for their money imo.