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I've cut out a lot of this as now out of date, leaving just the first post and now, by special request from SWW, here is a weblink and a chart.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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Hi all
SAW - I think whats holding the price down is because there have been more sellers than buyers today, which I found strange (maybe I'm still missing something?)
But according to what I have managed to dig out:
instead of FAO just digging (like most other small ish companies) looking for the oil, their RNS of 31/08/05 stated that after having the technical data further analysed by an independent oil/gas consultant (ECL) - this led to an increase of 30% in resources, with 2p reserve now at 11.45 mln barrels, if not significant at least we know unlike some other companies just digging to find an empty well !??
I've taken a punt, in the believe that come end of year when the production have started and oil WILL be digged up, there will be only one direction for the sp (north). DYOR.

If you check there website the potential,which is what the share price should reflect is alot higher.They have some juicy licences.gilli10, on the17 there were more buys then sells.

It's concern about the fundraising that is keeping it down.

Thks guys, yes that is a very hefty $68mln they're looking at to raise - very ambious indeed, but does that not also indicate it's 'bigger' potential perhaps?
For me, it's a gamble I'm willing to take, having just re-entered again (I made some profit from them last year when it went above 10p).

Some nice buys going through.

The more buys we get the lower we drift.

Someone getting in on the cheap ?

Worth a look at this price.

moneyman - what's your view as to what's going in with FAO? Is the Chinese deal ever going to happen or is it dead in the water? Will the drilling lift the SP back to where it was (assuming some oil shows up!)? Still haven't really worked out the drift down from 10p to 4p. I'm losing interest in this one - should I stick it out?

sd

Well if you have stuck it out this long then why not wait for an update on the spuds. I notice we have some very rich and influential Board memebers so I am now wondering if we will get a farm out or JV.

Well I'm out of this one as of yesterday - couldn't hang around any longer. Whoever would have thought you could lose so much money on an oil stock in 2005???!!

If the SP shows sign of life, I might try and catch a bit of momentum - just to get my own back - later in the year.

Good luck to all who remain in board - feeels funny jumping ship from a thread I started, but there you go.

sd

Looking good this morning. Seems to be ready to start moving back up.

Seems like they may be letting their mates in first.

and out!

Has anyone had a chance to look/assess the RNS released after closing hours, on a Friday afternoon, I take it, its bad news?????? and to expect further drop on Monday?

"Due to commercial sensitivities the Independent Evaluators' estimated monetary
valuations ("EMV's") for Chari Ouest are not being publicly disclosed. In
reaching agreement on the consideration to be paid to Energem for the Chad
Concession the Company and Energem have taken into account the Independent
Evaluators' Final Summary Reports and the privately disclosed EMV's calculated
by the Independent Evaluators in respect of the Chari-Ouest Block. The Company
and Energem have also taken into account that the Independent Evaluators did not
carry out an evaluation of the Largeau Block, due to the data not being
available at the time of the Independent Evaluators' evaluations."

seems v. strange that this is behind closed doors - what are shareholders meant to think was the result of the valuation that was done, or the one that wasn't?!

why are they raising so much money to develop so rapidly on so many fronts at once - looks like Energem are cashing out big time from this one because the Chinese interest they anticipated has failed. Only my conjecture, but it all seems very ambitious for such a tiny, young company.

sd

I just saw 2 lots of x trades at 4p (8mln and 17 mln), just means something big coming?

Are we due an RNS then for those 2 big trades?

No I would not expect so gill. What was interesting was that Energem took loan notes valued at 6p. Now why would they do that with current SP at 4p ?

The EOV4 well supposedly has proven resrves as confirmed by Marathin which previously, with oil at $10 barrel, was not commercially viable. This could be the foundation with other wells to prove more resource and subsequently a significant mark higher in price.

There also is the possibility of the Chinese comming to the table with a cash injection. Looks interesting.

Moneyman - thks for that, yeh, the loan notes at 6p was interesting.....

However, having now read the complete RNS, the point where they mention that if they do not get the 2nd stage of the fundraising (minimum of approx 22mln) by the end of April 06, the company can not continue to trade, was a bit worrying?
I'm still quite new to this, so would really appreciate yours (or anyone else's) view on all this. Thks in advance.