aquitane.

[AbsoluT]

Hi Everyone,
See attached, it may help. i'm off PP's for now, will keep mopping up good bargains on the floor for now.
Happy investing

[BLUEMONEY]

Originally Posted by AbsoluT

Hi Everyone,
See attached, it may help. i'm off PP's for now, will keep mopping up good bargains on the floor for now.
Happy investing

Thank you very much.

[emmanuel ewumi]

With the problem experienced,in the Niger delta am not too sure if the environment will be condusive for any Oil servicing firm.
The few PP that were listed,had not really given the desired returns,most of the PP are over valued.lt will be more profitable to mop up stocks on the floor.

[Avocado]

6 Utilization Aquitane seeks to consolidate its position in downstream
wholesale petroleum products market and integrate into the retail end of the value chain by systematically rolling out fuel stations. It also seeks to expand its product offering to include PMS, LPFO, LPG and ATK. Aquitane will also use part of the proceeds from the offer to restructure its balance sheet
refinancing some of its short term borrowings with long term equity:

Items..............................Naira Amount..........Percentage %
Tank Farms......................7,000,000,000.00....46. 67
Fuel Stations....................4,000,000,000.00....26 .67
Working Capital.................3,000,000,000.00....20.00
Refinance Existing Debt......1,000,000,000.00.....6.66
Total.............................15,000,000,000.0 0....100.00

Hardly an oil (industry) servicing firm... the Niger Delta wouldn't appear to be a direct threat...
.

[emmanuel ewumi]

Originally Posted by Avocado

6 Utilization Aquitane seeks to consolidate its position in downstream
wholesale petroleum products market and integrate into the retail end of the value chain by systematically rolling out fuel stations. It also seeks to expand its product offering to include PMS, LPFO, LPG and ATK. Aquitane will also use part of the proceeds from the offer to restructure its balance sheet
refinancing some of its short term borrowings with long term equity:

Items..............................Naira Amount..........Percentage %
Tank Farms......................7,000,000,000.00....46. 67
Fuel Stations....................4,000,000,000.00....26 .67
Working Capital.................3,000,000,000.00....20.00
Refinance Existing Debt......1,000,000,000.00.....6.66
Total.............................15,000,000,000.0 0....100.00

Hardly an oil (industry) servicing firm... the Niger Delta wouldn't appear to be a direct threat...
.

What about the pricing of this placement.Because the money you make in a PP,is inversely proportional to the pricing of the PP.lf you over pay you make little or no money,but if you under pay you make a lot of money.But with the way things are,most of the PP are no longer sold at a bargain like it used to be.Wish you good luck in the PP.

[bsr]

guys,

i was at the aquitane breifing last night, i must admit their profile document was poorly packaged. Just colors with no information.

cheers

[edwardaigbokhan]

It ll take more than insanity for me to take part in any private placement with all the opportunities in the secondary market.

[princed]

Yes the Secondary Market has it all...... I agree with u

[Babs_O]

Originally Posted by edwardaigbokhan

It ll take more than insanity for me to take part in any private placement with all the opportunities in the secondary market.

Yes o ! Not too wise going for most of the PP's and PO's now. With all the lock up of funds and uncertainties of when one will be liquid etc. Also in view of the potentially more liquid bargains on the NSE secondary market.

[muranay@yahoo.com]

Bye bye to PP. The secondary market is very very juicy and attractive now.

[zainabusman]

Originally Posted by edwardaigbokhan

It ll take more than insanity for me to take part in any private placement with all the opportunities in the secondary market.

I completely agree. Investing in a PP or PO right now is not worth it.

A strategy will be to carefully analyse all PP's that one comes accross. Select the very best and watch out for their listing. Once they are listed, one can then buy. Because a few of these companies floating PP's could turn out to be very good investments for the future.

[riskreturn]

Originally Posted by zainabusman

I completely agree. Investing in a PP or PO right now is not worth it.

A strategy will be to carefully analyse all PP's that one comes accross. Select the very best and watch out for their listing. Once they are listed, one can then buy. Because a few of these companies floating PP's could turn out to be very good investments for the future.

If there is the type of Chams PP of January (or so) this year, it may be worth given a try. Otherwise, any PP with end-2009 P/E ratio higher than about 7 times (5 times for financial institutions) may not worth being spared cash. At present secondary market prices, end-2009 P/E for most banks would be around 5 or 6 - without hasle of certificate verification, non-listing of PP shares as promised, etc.

[hispy99]

Aquitane to implement vertical integration strategy
Written by xxxxxxxxx
Tuesday, 02 September 2008
Aquitane Oil and Gas, an indigenous energy company, has re-emphasized its commitment to becoming a truly vertically integrated energy company.

The company’s COO, Mr. Lanre Kusemiju made this known at a recent interactive business forum held by the company to outline its current and future plans.

He stated that the company was looking to streamline its operations within the downstream segment by improving its efficiency, operational turnaround times and surmounting the logistical nightmare faced in petroleum products marketing by owning critical elements of the value chain.

“The petroleum products market is a low margin, high volume business where the ultimate creator of value is increased efficiency through the ownership of critical elements of storage, transportation and retail services. Our company intends to build a number of tank farms in strategic locations around Nigeria, acquire marine vessels and road tankers for transportation of petroleum products and acquire retail outlets to bring the products closer to the customer at more affordable prices.“

He further explained that the company was investing strategically in the improvement of its human resource base, operational processes, risk management platforms and technology, to better position it as an integral player in the Nigerian and African energy market for the long-term.

He went further to state the company’s intention to become a significant player in the upstream segment as it looks to acquire upstream assets within and outside Nigeria .

[pegheneji]

Originally Posted by riskreturn

If there is the type of Chams PP of January (or so) this year, it may be worth given a try. Otherwise, any PP with end-2009 P/E ratio higher than about 7 times (5 times for financial institutions) may not worth being spared cash. At present secondary market prices, end-2009 P/E for most banks would be around 5 or 6 - without hasle of certificate verification, non-listing of PP shares as promised, etc.

I agree with u so much because we should not overrule PP completely because those bringing PPs to the mkt are also aware of liquidity problem and investors apathy toward the capital mkt now. what i tlnk should be done is to analyse the pricing and extimate return. Remember someone bought Aso savings at N1 for N1 value (meaning 50k) when we were all focusing in the sec market. you may also consider that some know that some of this pp will be listed at much higher prices and when the bull is in control. Eg IAA bought at 53k listed at N1.30, got to N2.30 aand for a sustaaind bull might have moved past N3 like aso savings that moved past N5 which means more that 1000% for such investors. there may be argument of buying and selling instead in the sec mkt but short sell from experience does not rearly give you the room to hammer.

Let consider the apathy toward PP a blessing and have a 2 to 3 years investment cycle in mind and zoom into a very cheap PP.

[Curious]

General gist is the company used to serve as an energy trader/broker and recently got into the storage business by them acquiring some Tank farms (Lagos and Calabar). As such they have a license from NNPC and they are trying to leverage their infrastructure into the distribution game (service station). They also have a 17% stake in a refinery in Gabon and they are trying to getting license to lift crude so that they can be active in the full energy cycle. i.e. Lifting from Nigeria, refining in Gabon, shipping the products back to Nija, and selling at their own pumps. I gather they are in some sort of partnership with the Gabon government such that the refinery is owned by a combination of Aquitane, NNPC (I think) and the Gabon government. Now imagine how much value add you would get with a decent stake in a refinery with option to refine Nija crude that close to Nigeria.

Company is run by a group of very hungry, and very capable young guys and they've proved themselves with how profitable they've been. They were quick to recognise that in order to survive they needed tank farms so they got some. Now they realise that in order to grow and be note worthy they need to expand and possibly get into upstream side of things. Note that this is a business where margins and quite thin (and getting thinner) and profits are a function of volume.

Priv. Placement is still ongoing, min investment is N5m and listing planned for next year so, one can look at it as a way of preserving capital outside the market as you wont have to mark to market.

For more info, send me a message.

[hispy99]

Nigerian firm to refine oil in Gabon
By Stories: Clara Nwachukwu
Published: Thursday, 25 Dec 2008

An indigenous company, Acquitane Oil and Gas Limited is concluding plans to refine crude oil in a Gabonese refinery, and import the refined product to Nigeria.

The company said the move was part of its medium to long term plans to end the perennial fuel scarcity in the country, as well as establish itself as a leader in the downstream sector of the petroleum industry.

Intimating journalists with the plans on Tuesday in Lagos, the Group Managing Director, Acquitane, Mr. Ikechukwu Okolo, said the refining plan followed the buy over of 17 per cent equity in Sogara Refinery, Gabon, which formerly belonged to Shell Gabon.

He explained that the 25,000 barrels per day capacity refinery was a Joint Venture with the Gabonese government and French oil giant, Total.

Okolo explained, “We will partner with the Gabonese government to refine a few barrels of Nigeria’s crude and bring it back to Nigeria.

“We are still sorting out the issues with the Nigerian National Petroleum Corporation for the supply of crude, where we will take crude to Gabon, pay the refining costs and bring back the refined products to Nigeria.”

He noted that the refinery hitherto refined mainly heavy crude but had been modified to refine some quantities of Nigeria’s light sweet crude, adding that the NNPC had already given approval in principle for the supply of crude.

Notwithstanding the global melt down, which had affected the fortunes of the company, he argued that the refining venture would be a fruitful one, as all the economics had been worked out to ensure it was profitable.

Speaking on the company’s expansion plans, Okolo disclosed that apart from the refinery, Acquitane had also bought other offshore assets, including an oil block in Guinea, to mark its venture into the upstream sector.

In addition, he said the company had acquired some hectares of land in Calabar, Cross River State, for the construction of a tank farm and jetty to expand its downstream operations in Nigeria, to set itself as one of the leaders in the industry, even as it was just over three years in operations.

According to him, “Acquitane is looking to streamline its operations within the downstream segment, by improving its efficiency, operational turnaround time and surmounting the logistical nightmare faced in the petroleum products marketing by owning critical elements of the value chain.

“Our company intends to build a number of tank farms in strategic locations around Nigeria, acquire marine vessels and road tankers for transportation of petroleum products and acquire retail outlets to bring the products closer to the consumers at more affordable prices.”