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I've cut out a lot of this as now out of date, leaving just the first post and now, by special request from SWW, here is a weblink and a chart.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