DanDaDan
29 Mar 2017
FSJAMESC.. Take a look at LSE and see the write UP. by Campbell. Great stuff.Here is part of it that IMO is very useful.///////KEY FACTS (RECAP).1. Management paid on production targets reached.2. Funds raised and once current workovers successful then company, based on 250bbl/d will be self-sufficient (no more fund raising needed).3. Risk / reward very low.4. Share price could double or triple following sequence of success and company expectations.5. AAOG is a producer and explorer, the exploration is heavily de-risked by the production funds being invested and used to run the company.CONCLUSIONI am very excited about this prospect, having spent the weekend looking at articles and watching YouTube videos, I am really excited at the potential in this stock, I am so excited to be in at the entry level, to be part of the growth of this company and to see the fruits of its labour reflected in the sp increases. I was excited when this company was floated on AIM and now with an increase in 5.5p since this was first researched, I am confident that the growth can continue. The target of the company is 5000bbl/d – Imagine that was reached in the first 18 months with 50 million shares in issue, this sp would rocket skywards on that production, we would catch the rise and be in a very fortunate position. Of course, nobody can guarantee full and continued success, but the upside potential connected to this investment far outweighs the risk.This is currently at a superb entry level to jump on this luxury vessel and sit back and enjoy a first class ride into the sunset of fortune, with low risk and assurance that the captain and the crew of the ship are focused on remuneration being collected on the crucial reaching of milestone targets……//////GLA
jaytee41
29 Mar 2017
Re: Get IN Early. First poster eh Dan Dan. Your report looks good
DanDaDan
29 Mar 2017
Get IN Early. Get in early before it gets noticed, IMO.Some useful notes from elsewhere////Thanks to ZengasInfrastructure in place (No spend needed).Already producing and any new oil would go straight on to production.Oil production currently from one of the three Point Indienne reservoirs.Oil found in the Mengo and should produce on fracking/acidisation.Oil in Djeno analogous nearby fields - so high possibility for same here given reservoir is estimated 350m below Mengo.Could result in high level of reserves if successful.Directors intention to pay significant dividend return to shareholders.With oil at $50/b and an opex of $5 (at 5k bls/day), they should be making $30/b profit and if 5,000 bopd net was acheived would result in $55m (£44m) per year of which they planned to pay about 75% in dividends which might be around £30m/year and over the fully diluted shares could be about 37.5p/year per share.Given the directors don't seem to have any intention to seek other assets, i'm sure there's plenty of companies that would like to get their hands on that kind of cash flow rather than see that level of cash/dividend going back to shareholders. They could buy further assets and potentially build a much, much bigger oil company. The drawback is knowing if the Djeno has oil ? Saying that they could get the same level of cash flow from the Mengo but the reserves wouldn't be as high for the longer term but still very attractive.If they establish oil in the Djeno and on the broker note valuation for £190m based on 25% success rate that's in to 240p territory fully diluted.Very short window to know the 3 stage outcome given the directors said they plan to be finished late August/early September on all 3 target zones.////Not known a share that carries such massive short term upside with a relative safety net to capital exposure. Well said Keya5000.////Someone is looking for an sp of £3 , double + will do me........GLA.
