Bill Harris, CFA Africa Oil Corp. AOI-T HOLD Nov 19, 2013

Recent success a bright spot for oil companies. 
Delay in Nigeria drilling a concern.
Funding concern in Kenya will determine outcome for the business.
Wonderful performance the past few years. 

Sold Kenyan operations, but still active in Nigeria, Namibia, South Africa, and Guyana. He'd still recommend it for people who enjoy global exploration risk/reward. If you're looking for dividends, stick with conventional oil/gas.

He trimmed. Notes with some trepidation the retirement of the CEO, who is a personal friend. Amazing performer based on Nigerian assets. Exposes you to some political risk.

Disappointed that their Kenyan assets have taken longer to mature.  They continue to do well in Nigeria though. Troubling though not surprising is their CEO/founder retiring. He remains long.

Believes stock is selling at less than half of what it is worth. Consolidation in assets very good for company. Increased interests in various African assets. Committed to distributing 50% of cash flow to investors through dividends. 

AOI has lots of cash, a cheap valuation and very rapidly growing revenue and earnings as wells come onto production over the next two years. It is fairly small and needs to be considering high risk, but we would see it as a BUY for small cap sector investors. 
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He likes out-of-favour assets. Oil & gas are out of favour, especially in Africa. Wonderful job of paying down debt from latest acquisition. Can now focus on returning cashflow to shareholders, while still exploring Nigeria and Namibia. 

Trades at 50% discount to net present value of existing Nigerian assets, which means you get everything else for less than free. Still has backing from the successful Lundin family. Yield is 4%.

Selling at a 50% discount to his assumed NAV. Primarily operates in Nigeria, second in Namibia. Likes Lundin family management (wonderful track record), and he's done business with them for almost 50 years. Aggressively returns cash to shareholders via dividends and share buybacks. Strengthening its balance sheet, reinvesting in the business. Yield is 3.53%.