Africa Oil Corp's (TSX:AOI) second-quarter update showed all its assets performing strongly, said Stifel, albeit impacted during the quarter by a planned 1-month maintenance at Akpo.
“This business continues to generate good free cash; over the next 5 years, we forecast ~$800 million of free cash, which results in an EV payback period of ~6 years.
“We expect this to be allocated to capital returns, ongoing investment in low cost, high margin deepwater Nigeria life extension and near-field development opportunities.”
Stifel added it did not expect to make many significant changes to NAV on the back of these results, which stands at C$3.36/sh, based on US$70/bbl long run.