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I've cut out a lot of this as now out of date, leaving just the first post and now, by special request from SWW, here is a weblink and a chart.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



">

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

Talking about the onshore asset now in exploration stage

Update on Epaemeno

Epaemeno is FirstAfrica's wholly-owned onshore Gabon exploration block which
lies to the north of Shell's recent discoveries in the Awoun block, to the east
of Perenco's discoveries in the Ombena block and to the west of Maurel and
Prom's discoveries in the Omouejy block. ECL's Epaemeno Block Assessment Report
dated 24 January 2006 confirmed the prospectivity of the Epaemeno exploration
licence. ECL's re-interpretation of previous Elf seismic data in this report
identified 6 prospects in the Epaemeno block with a total of 228 million barrels
of unrisked Prospective Resources (recoverable). Based on 'Chance of Success'
estimates of between about 1-in-6 and 1-in-10, these prospects have a combined
Expected Monetary Value of approximately US$280 million, based on an oil price
of US$55 per barrel and a discount rate of 10 per cent..

Please note that the Q3 2007 production is only on the OFFSHORE asset.

Words ending in a vowel followed by 'o' to steer clear of:-

SEO
FAO
georgetrio

'scuse me whilst I choke on a little fish that's being rammed (ramped?) down my throat!

sd

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


georgetrio - I copied the above so I could highlight the points and then make comment. As someone with moderate experience in the oil industry I'd have to say all the above, if true, are the result of very poor planning, some might say negligent.

Who on earth would secure an FPSO without a power generation unit?

Who would not have contingency built in if there was a requiremnent to slightly extend the drilling (mind you, I fail to understand the need to access further, deeper formations if the field is properly proven).

The exploration commitments would/should have been known at Epaemeno.

Acid treatment is expensive, but not that much. BTW, I've just been exposed to that. Successful acid jobs, i.e. in increasing production short term are infrequent - fact! Also, the work ain't that expensive it requires a placing, trust me!

The prepayment for the FPSO should have been known about when it was secured - it's all part of the tender process. If they signed and found out after, then .................!!

Anyway, why's the first oil date gone back minimum 6 months? Not smart, not clever.


Sorry, but either you're full of it or they are.

big al
thanks for bringing your view forward. like i said before FAO has a lot to prove at this stage and only excellent management can sort out the mess. i remain invested knowing the risk is very high.

stockdog

rammed down your throat? not sure about that because the first thing investors do is to decide. make your own decisions because is your money. i do not think people are stupid to invest without doing their own homework. do me a favour stay clear of FAO because the risk is very high

georgetrio - hope you keep it small then. ;-))

georgetrio - even though I started this thread 18 months ago, be assured your incessant voluminous one dimensional posts make it all yours!

the point about threads is to share them to learn, exchange ideas, be sociable, etc . . .

good luck with talking to yourself.

sd