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I've cut out a lot of this as now out of date, leaving just the first post and now, by special request from SWW, here is a weblink and a chart.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



">

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