Africa Oil (AOI on the TSX Venture Exchange) was recommended by Crisis & Opportunity at $1.92 in Investment Digest issue 693, dated April 20, 2011. AOI closed Monday at $3.35.
“Africa Oil (AOI) is up 53% today! Africa Oil just struck oil on the Ngamia-1 well on Block 10BB, Kenya. That’s why we play the game.
“From the announcement: ‘The Ngamia-1 exploration well in Kenya has encountered over 20 metres of net oil pay. The well, located in the Lokichar Basin of Kenya Block 10BB, was drilled to an intermediate depth of 1,041 metres and has been successfully logged and sampled. Movable oil with API gravity in excess of 30 degrees, with similar properties to the light waxy crude discovered in Uganda, has been recovered to surface. The reservoirs in this section are composed of good quality Tertiary age sandstones. The Lokichar Basin, where the Ngamia discovery has been made, is one of seven basins mapped in Africa Oil’s acreage and is similar in size to the 9,000 square kilometre Lake Albert Rift basin in Uganda.’
“Keith Hill, President and CEO of Africa Oil, said: ‘We are extremely pleased that the first well in the drilling program has resulted in an oil discovery. These results will significantly de-risk nearby prospects and give encouragement for the remainder of the Tertiary rift basin. We look forward to an aggressive drilling program in next 18 months which will also test the potential of our other rift basin plays in Kenya, Ethiopia and Somalia.’
“This is huge. ... If the Africa Oil find in Kenya is anything like Lake Albert’s 2.5 billion barrels of oil, we are looking at a home run here. We are going to make a lot of money over the next few months. No one else is covering or has covered East Africa oil like Crisis & Opportunity.
“Make sure your account is up-to-date. I don’t want you to miss out on what’s to come. Congratulations on your gains — more to follow.”
- Christian DeHaemer, Crisis & Opportunity, March 26, 2012