|Reply from AOI management. |
It’s an article in a local Nairobi paper that talks about discussions the government of Kenya is having with their local communities regarding revenue sharing once oil production starts. The article was a little dramatic which unfortunately tends to happen down there. In fact, the article said we were going to have to stop drilling because of it (which of course is not true). The markets are so nervous and sensitive right now that it doesn’t take much to have these wild swings – even whiffs of rumours.
The discussions that the government has with their communities is very important and healthy as a new emerging oil industry in the country will have an important positive impact in so many ways for the whole country. I imagine there will be lots of discussions and debates over the course of the next few years that we will read about. But this does not directly impact Africa Oil. In a better market, this article wouldn’t have made a dent in the share price.
I haven’t heard of a BOD meeting today – Keith is on short holiday right now.