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I've cut out a lot of this as now out of date, leaving just the first post and now, by special request from SWW, here is a weblink and a chart.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

BIG al

will do, no worries.

stockdog

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

Recent Major Shareholder Transactions Click to sort by Holder
Date Holder +/- Amount Shares held %
05-07-2006 Capital Group Companies + - 282,713,582 10.5700
03-07-2006 Fidelity International Limited - - - 9.4500
29-06-2006 Capital Group Companies - - - 9.3300
29-06-2006 Tudor Capital - 90,189,236 3.4600
20-06-2006 Fidelity International Limited - 246,154,000 10.5900
16-06-2006 Capital Group Companies + 124,353,800 243,140,800 10.4600
16-06-2006 Merrill Lynch Investment Managers + 56,000,000 158,745,813 6.8300
27-07-2005 Capital Group Companies - 118,787,000 7.9900
25-07-2005 RAB Capital - 108,787,000 24,640,183 1.6600
10-02-2005 Gartmore Investment Management - - - -
10-02-2005 Merrill Lynch Investment Managers - 102,745,813 6.9100
08-02-2005 Morgan Stanley Securities Limited - - - -

Georgetrio
My investments in FAO were based on researching the data available at the time and obviously could not take into account the incompetance of the FAO management. and there is always some risk we all know that but when it does go tits up you dont need someone smugly pointing out that fact !. put them in the bottom draw and see what they are doing in 12 months, if there still going :) LOL

smiler
cheers. good point, time will tell. best luck

"11 October 2006

FirstAfrica Oil plc ('FirstAfrica' or 'the Company')

Proposed 1 for 50 Share Consolidation ('Share Consolidation')

FirstAfrica announces that yesterday it posted a circular to its shareholders
relating to a proposed 1 for 50 share consolidation ('Circular')."

Inevitable result of having too much paper.

Oh well ! 50/1 lets hope for the 50p mark

Sometimes it must get worse before getting better. eagle eyes must be zoomed on the management. not bad start though but a lot to do yet. best luck.

FirstAfrica Oil PLC
26 October 2006

26 October 2006

FirstAfrica Oil PLC ('FirstAfrica' or the 'Company')

Update on Placing to raise up to US$53.9 million

On 4 October 2006 FirstAfrica announced its intention to raise new equity funds
of up to US$53.9 million (before expenses) to enable further development of the
EOV Field and provide working capital for the Group by way of a placing to
Qualifying Investors (the 'Placing'). The extraordinary general meeting
scheduled for today at 10.00am to approve, inter alia, the issue of up to
5,734,042,400 new ordinary shares will go ahead as planned despite the Placing
not being finalised and the placing price announced. The closing of the Placing
is expected to be delayed for up to two weeks pending the following:

the finalisation of the audit of the Company's reserves by Netherland
and Sewell Inc.; and
agreement in principal on a US$25.0 million debt facility, for which
discussions are continuing.

Due to the board's cash management policies and confidence in completing the
Placing it believes that the Company can continue to trade.

If the resolution required to effect the 1 for 50 share consolidation is
approved at the extraordinary general meeting convened for 11.00 am today then
the Company will proceed with the share consolidation only following the
finalisation of the Placing and the issue of new ordinary shares.

Shareholders will be updated as appropriate in due course.

FAO shares suspended pending clarification of financial position mmmm.
2517

That will be another one lined up against the wall then?

FirstAfrica Oil PLC
15 November 2006


15 November 2006

FirstAfrica Oil PLC ('FirstAfrica' or 'the Company')

NSAI Reserves Report

Further to the announcements made on 26 October 2006 and 9 November 2006,
FirstAfrica announces the finalisation of the reserve audit carried out by
Netherland, Sewell & Associates ('NSAI') on the East Orovinyare Oil Field ('EOV
Field'), offshore Gabon.

Oil Volumes

Following the completion of the drilling programme in the EOV Field, NSAI
conducted an audit of the Company's reserves. NSAI, which finalised its audit
report on 13 November, conducted a full review of the reservoir structure and
drilling results and calculated production profiles for each of the wells. Due
to time limitations however, NSAI did not develop a full economic model and so
have produced results citing the SPE definition of 'Contingent Reserves' as
follows:

Level STOIIP Unrisked Gross Estimated
(MBBL) (100 Percent Recovery Factor
Contingent Oil (pct)
Resources
(MBBL)
Low Estimate 16,352 4,096 25.0
Best Estimate 23,590 7,394 31.3
High Estimate 30,647 12,371 40.4


The 'Best Estimate' resource figure of 7.4 million barrels compares with the
previously estimated 10.5 million barrels (2P) reserves. NSAI's estimated
barrels of oil reflects the following:

The adoption by NSAI of a slightly lower STOIIP volume as the basis of
their estimate; and
The application by NSAI of a lower recovery factor.

The board believes that the economics as stated in the circular to shareholders
of 3 October 2006 are not supported by the revised resource figures provided by
NSAI stated above. The Board is therefore carrying out a re-appraisal of the
best way of developing the EOV Field and is actively pursuing a number of
different options for financing the company's activities going forward.

FirstAfrica's ordinary shares remain suspended on AIM. Further announcements
will be made in due course.

OF Interest


15 November 2006
European stocks dip on high oil prices
Reuters

European shares eased yesterday as rising oil prices weighed and investors cashed in recent gains from the nearly completed earnings reporting season, amid scepticism that markets will move higher.

"For the first time since early 2004, more investors now see equities as overvalued as opposed to undervalued," Merrill Lynch said in a summary of a global fund manager survey.

Among few notable gainers was Spanish telecoms firm Telefonica, which advanced 1.2 per cent after raising its 2006 forecasts following solid earnings in the first nine months. The pan-European FTSEurofirst 300 index fell 0.4 per cent to 1,461.48 points, mirroring activity on Wall Street where the Dow Jones industrial average fell 0.3 per cent.

Despite yesterday's dip, the index of leading European shares is up nearly 14 per cent so far this year on a boom in takeovers and solid earnings. It hit a 5-1/2 year high of 1,473.4 last week.

Across Europe, the FTSE 100 index fell 0.1 per cent, Paris's CAC 40 was down 0.3 per cent, and Frankfurt's DAX lost 0.1 per cent. A drop in US core producer prices and a smaller-than-expected decline in US retail sales briefly eased inflation worries but failed to provide a lift as many investors are growing sceptical about whether equity markets will move much higher.

"Investors continue to struggle to see how corporate profits can surprise positively over the coming year," Merrill Lynch said.

"With equities up almost 10 per cent over the past three months, valuations have taken the strain," the bank added.

Analysts said high oil prices, up 0.4 per cent to $58.83 a barrel, also weighed on markets.

Swiss drug maker Novartis fell 1.9 per cent, extending a loss on Monday after it reported a delay for its key diabetes drug Galvus.

Deutsche Boerse was down 1.8 per cent after sources close to the Frankfurt stock exchange operator told Reuters it was seriously considering dropping its bid for pan-Europan rival Euronext.