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I've cut out a lot of this as now out of date, leaving just the first post and now, by special request from SWW, here is a weblink and a chart.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