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I've cut out a lot of this as now out of date, leaving just the first post and now, by special request from SWW, here is a weblink and a chart.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