SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Canadian Oil & Gas Companies
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Oil man who wrote (266)10/1/1996 10:04:00 AM
From: Kerm Yerman   of 24933
 
Oil Man/Abacan

I invested into Abacan about 1-1/2 years ago at which time four
small companies combined interests in Nigerian play to form the
company as you know it today.

I got out of it for a few reasons. Most noteworthy was the backing
out of joint venture partner Canadian Occidental Petroleum. This
meant lack of capitalization to support huge costs of their project.
The company has shown no hesitance in diluting shareholder
value. As example, outstanding shares increased from 24.6mil
to 64.3mil last year and 5.5mil warrants were also issued in 1995.
At the start of year, they announced a need for further equity equal
to $30+mil.

Nigeria is Africa's largest oil producer and Abacan does have a big
play in the Niger Delta. But, the situation there is politically unstable.

I looked at your profile and saw that Arakis Energy was mentioned.
There is a comparison. Both have entered big play areas which
holds substantial promise. The problem is, they both didn't have
the capitalization to support the activity.

My bottom line comments are this. When looking at this company,
base your research on focusing on per share status, including
production statistics. Use fully diluted shares which was (I believe)
77.0 mil to start the year. Add shares and options resulting from
any financing activity in 1996. (I haven't seen quarterly reports since
I dropped coverage.) Watch long term debt and remember they
have convertible debentures outstanding. You should also find out
what the current Net Asset Value is and compare it to market cap.
at current share price.

Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News