bartm, In regard to the prized possession, I think Somalia is the asset that shows the most promise. If they plan to drill the Darin 1 site that was previously noted to be an oil discovery, they have little down side risk to success.
The assets that were transferred, dramatically increased their risk profile due to dry wells being drilled in the most prospective concessions in Sudan. With oil at the current price, these projects would have been shelved. US$20 million is probably a high valuation for these assets given the question mark over their viability in the current market. Lundin has been very schrewed in transferring these questionable assets at a time, when he can maximise his holding in AOC and capitalise on any oil discovery in Somalia. What will those assets have earned Lundin via AOC shares, if oil is found?
RRS Price at posting:
2.6¢ Sentiment: Buy Disclosure: Held
