African Petroleum - up for grabs.

Hi all,

For anyone with a strong capacity to witness a heinous scene strewn with fiscal fraud and shareholder blood, I commend to you the African Petroleum half yearly report which came out about 3 weeks ago.

It looks as if convicted heroin user, Frank Timis's corporate governance and shareholder abuse plaything (otherwise known as African Petroleum) will be lucky to survive beyond Xmas.  US$20m of net current liabilities, US$3m of cash, a corporate burn rate of about US$0.6/mth, no prospects of raising any meaningful amount of equity, let alone the US$160m of permit commitments...this all equates to a train wreck in progress.

Their 90% Rufisque Offshore permit expires this month and they owe a well on it.  So its pretty likely that it wont be extended or renewed.  But I'm very sure our COP/CNE/FAR are doing their best vulture impressions and have put offers to AP for their Senegal and Gambia acreage.

My point here is that I think it could happen soon.  Our guys don't want to have to be dealing with a Receiver.  

From AP's half yearly....

The Gambia & Senegal: The Company is in farm out discussions with numerous interested parties across the Company’s assets, including The Gambia and Senegal. The recent exploration success of third party operators within this area, namely Cairn Energy in Senegal and Kosmos in Mauritania, has led to a significant increase in the level of interest in these assets. There has been a 60% increase in visits to the Company’s data room during the first half of 2015 from a high calibre set of companies, a number of whom have confirmed their interest in pursuing a transaction and have completed their due diligence. The Company seeks to attract binding offers as soon as possible. Further announcements on progress will be made in due course.

Cheers,