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I've cut out a lot of this as now out of date, leaving just the first post and now, by special request from SWW, here is a weblink and a chart.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