First"cheap" airline in Africa

[Wahalla]

fastjet sets new passenger record


By StockMarketWire | Tue, 14th January 2014 - 08:31
Low-cost African airline fastjet operations in Tanzania carried a total of 37,458 passengers in December.
This is the highest number of passengers in one month since fastjet started operations, and was achieved with an average load factor of 71%
The average yield per passenger was a record $97, compared to $50 in December 2012.
Total revenue for the month was $3.6m, considerably more than previous months and exceeding $3m for the first time since the start of operations. fastjet said a key contributing factor to December's strong performance was the Dar es Salaam to Mbeya route which increased in frequency from three to four flights per week on 1st December, and then to daily flights on 16th December. Despite these capacity increases, the route achieved an excellent average load factor of 68% for the full month.
The passenger numbers carried by the legacy 540 businesses fell slightly year on year with restructuring. fastjet said punctuality remained outstanding with 92% of flights operating on time. Interim chairman and chief executive Ed Winter said: "Our yield and total revenue figures for the month were excellent and the performance on our established routes during the important Christmas period was better than expected.
"Additionally, the strong performance of the Dar es Salaam to Mbeya route continues to show how well the low cost model can work in this market place. Our low fares have stimulated the market and provided a real option for the huge, pent-up demand on this route."
At 8:31am: (LON:FJET) Fastjet PLC share price was +0.01p at 3.03p

[Wahalla]

few months back i stuck in a report on Heritage oil having to pay capital gains tax despite a pre existing agreement in Uganda...thye and Tullow were the finder of the wealth......where Tullow was the winner of that legal encounter... here tje Ugandan goverment did the same thing to Tullow as they did to Heritage....


Analysis: Will Uganda Grant Oil Production License To Tullow?

The Uganda government appears inclined towards handing production licenses to well established oil giants CNOOC and Total E & P, leaving out Tullow Uganda.
By Giles Muhame 13 hours 1 minute ago

Tullow Oil has so far drilled almost 80 wells in western UgandaOfficials told Chimpreports that government is pessimistic about granting a license to Tullow due to lack of adequate experience in oil production.

Tullow currently operates in Norway, Ghana, Kenya, Ethiopia, Mozambique, Mauritius, Gabon, Congo (Brazzaville) and Bangladesh where it is mostly involved in exploration works not actual production of oil.

While Tullow is credited for major new oil discoveries in several countries including Kenya, it’s lack of necessary expertise in production continues to haunt its dreams of being an oil producer in Uganda.

Mr. Ernest Rubondo, the Commissioner for Petroleum Exploration and Production Department last week said Tullow, the operator of Exploration Area 2 (EA 2), had submitted an application for a production licence and field development plans and petroleum reservoir reports for eight discoveries namely Mputa, Nzizi, Kigogole, Nsoga, Ngara, Ngege, Kasamene and Wahrindi after completion of appraisal work on these discoveries.

According to Rubondo, Government has reviewed these submissions and is in discussion with Tullow with regard to content of these submissions. He did not reveal when or whether a production licence would be granted to the oil firm.


Financial clout


The second reason as to why government is hesitant to respond to Tullow’s requisition for a licence is that it has been outshined by other oil firms in terms of financial clout.


In comparison, Total E & P, which is incorporated in France and listed on Paris, Brussels, London and New York Stock Exchange and also ranked as 5^th publicly traded international oil company with a market capitalization KPI (company’s worth) of US136.2bn, stands a better chance of acquiring the production licence before Tullow whose market capitalization is just $12.8bn.


Total operates in over 50 countries with interests in 20 refineries, operating 9 directly.


According to a presentation to Ugandan ambassadors during their annual retreat in Kampala last week, Energy Ministry Permanent Secretary, Kaliisa Kabagambe said Total E & P’s 2012 sales stood at 200 billion Euros.


In the same league with Tullow is China government-backed CNOOC with a market capitalization of US$79.57 billion and operating in China, the North Sea and other countries.


CNOOC is listed on both Toronto and New York Stock Exchange.


Experts say due to lack adequate resources on the part of Tullow compared to Total E & P and CNOOC creates considerable difficulties for government policy that requires significant investments for pre-production.


“Uganda's current crop of oil companies include two giants (Total and CNOOC) and Tullow you note is hardly an oil producer compared to the other two nor does it have the financial resources to compare,” said a source.


According to Angelo Izama, a researcher and distinguished expert on Uganda’s oil sector, “I think the feeling right now is that the company mix would be better assisted by big spenders like CNOOC as you may have noticed.”


He adds: “Government of Uganda is increasingly seeking flexible funds- particularly sovereign wealth funds to augment its long term plans. At the end of last year, over 5.2 billion dollars was secured from China (Karuma and then Kingfisher) and even this current process for the refinery is focused on money from governments not the market.”


“So companies like Tullow are struggling to retain their influence in this situation raising speculation that they would sell - because a sale would make sense for their main partner- the government.”


It is reported that the distress was occasioned more by Capital Gains Tax drama.


Tullow was keen on securing its commercial rights and moved to resolve it by working with government of Uganda to meet both its obligations and that of Heritage but it took almost two years and the situation is still tied up in litigation.


Heritage's appeal on some aspects of the case in which it was protesting the capital gains tax on the sale of its interests to Tullow, will be heard in a UK arbitration court on February 4.


Experts say managing that turbulent process, plus allegations that a Tullow’s exploration director, Angus McCross, reportedly told fellow executives in a group email in August 2010, that the firm should pay for an oil licence to ‘meet the short term needs and demands,” of President Yoweri Museveni at the height of the 2011 election campaign, put a strain on relations between the oil firm and government and on the petroleum program itself.


“It was a major distraction,” said an expert.


Recent reports in the reputable media outlet, Bloomberg that State-owned Norwegian oil and gas giant Statoil ASA had weighed the possibility of acquiring Tullow further raised fears that the British oil firm intended to get a production license in Uganda for a higher bargaining power for its interests in the Albertine region.


Status of oil and gas sector


A total of 112 wells have been drilled in the Albertine Graben to date while 98 have encountered hydrocarbons which reflects a success rate of over 85 percent.


The crude is sweet and waxy with 26 degrees to 33 degrees API.


28 wells have been flow tested with 30,000bbl of test crude oil produced and under storage.


Of the 21 oil and/or gas fields discovered to date, 3 discoveries were considered commercial while 18 fields have been appraised and applications for production licenses over 10 fields submitted.


Out of the received applications, one Production license was approved during September 2013.


An appraisal of other 8 discoveries is still ongoing and is expected to be completed by end of 2014, according to Kabagambe.



Less than 40 percent of the Albertine Graben has been evaluated


- See more at: http://chimpreports.com/index.php/bu....sZwauL0k.dpuf

[Wahalla]

time to invest in Kenya and uganda...big projects of roads, piplines and a port... i track a number of energy companies focused there ...FAR ltd.... tullow, heritage, ophir...aminex...some are going to fail....


Kenya edges towards oil production, hurdles remain

Reuters - UK Focus – Wed, Jan 15, 2014 20:09 GMT






Companies:

• First Corp.
• Tullow Oil plc
• Africa Oil Corp

RELATED QUOTES


* Tullow says Kenya has 600 million barrels of oil
* Exports depend on $4 billion pipeline project
* Flows through pipeline could start in 2019
By Edmund Blair
NAIROBI, Jan 15 (Reuters) - Tullow Oil (LSE: TLW.L - news) 's two new finds have moved Kenya closer to oil producer status but reaching that milestone requires developing fields in a remote region, constructing an export route and building local skills in a nation new to the business.
Britain's Tullow has doubled its estimate of discoveries to 600 million barrels in the Lokichar basin, an arid corner of the east African nation, which wants to put itself at the centre of a regional oil boom in the making.
There is probably much more oil there. Consultancy Wood Mackenzie says two onshore basins in Kenya and Uganda could have more than 4 billion barrels in addition to Kenya's existing reserves and the 1.6 billion already found in Uganda.
Even before Kenya's latest finds, Tullow said the two nations could produce 500,000 barrels per day, which would boost Sub Saharan output by 8 percent from current levels of around 6.2 million bpd.
But cautionary tales abound that will encourage Tullow, an experienced African explorer, to tread carefully in drawing up its Kenyan plan, which it aims to have approved in 2015/2016.
The firm and its Kenyan partner Africa Oil (CDNX: AOI.V - news) halted work for two weeks last year when local protesters demanding more benefits ransacked a drilling site, exposing popular impatience for the spoils of the new industry.
In land-locked Uganda, where Tullow also has acreage, wrangling over a refinery project has been blamed for delaying commercial production of oil found back in 2006, highlighting the political challenges that can stymie projects.
"Kenya is very exciting in terms of exploration and it is potentially not as complex as Uganda as they just need to build a pipeline to the coast," said Catriona O'Rourke, senior analyst for Sub Saharan Africa at consultancy Wood Mackenzie.
First (Other OTC: FSTC - news) commercial flows through a planned pipeline could start in 2019, she said. "I think it will happen, as long as politics doesn't start slowing things down."
Tullow has said production could start as early as 2016, but would have to be trucked out by road and rail at that stage.
Yet, there are other potential constraints beyond political tussles that may put a brake on progress. Kenya, like other east African nations seeking to develop new reserves, has to learn a new business and for now has limited capacity to assess and approve the huge-scale projects that are needed to extract oil.
NEW SKILLS
The 1,300-1,400 km (800-870 mile) pipeline project to link Kenya and Uganda's oilfields with a new Kenyan port could cost $4 billion - equivalent to about a fifth of projected state spending in the 2013/2014 budget.
Building those new skills will take time and may lead to policy missteps, said one oil executive in Nairobi.
"There are growing pains," he said.
But he said an oil pipeline, unlike building a new road or railway, would generate immediate and visible revenue, which could focus the minds of bureaucrats to speed up implementation.
"The amount of oil they have found or are finding is too big to let it sit in the ground," the executive added.
Some politicians are already becoming restless with a government that this month said it was delaying till June the first draft of revised laws governing the petroleum sector, which aim to draw in new investors.
"The ministry is working on the draft law, but they seem to be going very slowly," said Jamleck Kamau, chairman of the parliament's energy committee, speaking of regulations that were last updated in 1986.
He said the law needed careful work to share the benefits of oil production and avoid the kind of protests that drove Tullow to halt operation temporarily last year in its fields that lie in the desperately poor Turkana area.
Tullow said it had learned lessons after it "messed up" relations in the area with locals from Turkana, although analysts also blamed local politicians for whipping up the crowds. The firm returned to work after dialogue with the government and local community.
"Turkana is an underdeveloped area with a long history of government neglect and discrimination, and a population that will want a clear benefit from the resource in their midst," Angelo Izama, a researcher for the Open Society Foundation who has been tracking oil development in the region.
That poor infrastructure adds to the challenge for Tullow and its partners. Before production can start, developers must transport heavy equipment into the rocky and arid region where the few hardened roads are often in poor shape.
It may also limit how much oil could be trucked out in the early stages of production.
"Western oil companies are under no illusion," said the oil executive. "We are under no illusion of what needs to be done."

[Wahalla]

Finally multi nation sub sahara budget airline finally! Zambia-Tanzania-South Africa....More travel more trade more inter-nation sex,.. Air travel is a revenue and cultural multiplier.... This is good news!!!!!!

And their flight attendants look ruxable as well...

fastjet adds second international route from Dar es Salaam

fastjet’s first flight to Lusaka in Zambia from Dar es Salaam in Tanzania was celebrated by the carrier’s crew along with the first passengers on 1 February at the Zambian airport.

• fastjet, the Tanzanian low-cost carrier, commenced its second international route to Lusaka (LUN) in Zambia on 1 February, joining its existing services to Johannesburg. The 1,500-kilometre sector from Dar es Salaam (DAR) will be served twice-weekly (Thursdays and Saturdays), utilising the airline’s 125-seat A319s. The flights to one of the fastest-developing cities in southern Africa will face no competition from other carriers. Commenting on the route launch, Ed Winter, CEO of fastjet, said: “We are incredibly pleased that, in accordance with our planned growth strategy, the roll-out of our international route network is now gaining real momentum and we are fulfilling our promise to the people of Africa to democratise air travel across the continent. We look forward to bringing the benefits of affordable, high-quality air travel to the people of Zambia.”

[Wahalla]

This is the reply that the establish national flag carrier make.. they are against it....who gets hurt ? who gets the subsidies by the national govements ? if there was no subsidies this would be available for other developmental needs....

the question in my mind is who will own the airlines that breaks the bottle necks....

National airlines in europe are not that successful, but there are a pleatroa of alternatives connecting


Ethiopian Airlines chief dismisses Stelios’s African dream

By Ian Taylor |07 February 2014 at 08.41 GMT 1 Comment



Africa is not ready for airlines such as Fastjet, the brainchild of EasyJet founder Stelios Haji-Ioannou, says the head of the continent’s leading carrier.
Ethiopian Airlines chief executive Tewolde Gebremariam told the Aviation Club in London yesterday: “We have a different view of the low-cost model in Africa because cross-border traffic in Africa is fragmented.”
Gebremariam said: “Low-cost carriers are based on utilising aircraft 10 times a day, then unit costs come down. It is very difficult to do that in Africa.
“Point to point will be challenging on the continent [because] 60% of market segments in Africa have less than 50 passengers per day.”
Fastjet began operating as a low-cost carrier in November 2012, based in Tanzania and also serving South Africa and Zambia.
Co-founder Haji-Ioannou has plans to turn Fastjet into a pan-African carrier
But Gebremariam said: “There are other constraints. One is traffic rights between countries.
“The low-cost model could be perfect within a country’s borders, within Nigeria or South Africa for example. But the issue of cross-border traffic rights is a big bottleneck.”
He added: “The low-cost model should transform costs. But in Africa low-cost and full-service carriers pay the same not just for fuel but for [using] the airport. It is very difficult.”
Gebremariam was also critical of European governments, especially the UK’s.
He said: “We see aviation’s centre of gravity moving from Europe to the Gulf and European governments and politicians are helping the [Gulf carriers] by making it very difficult for airlines to operate in Europe.
“Tax is one factor. Airport congestion is another. Ethiopian Airlines wants to fly to Heathrow twice a day but we can’t even go daily. We operate six flights a week.
“A third runway has been discussed for years. Dubai just got on and built six runways.”

[Wahalla]

proof that no frills airline can work in Africa.....contradicting Tewolde Gebremariam... the need to open the skies of africa so to speak.....i am still in loss on my investment....

fastjet figures reveal airline is flying in the right direction

By Ian LyallFebruary 14 2014, 7:30amfastjet revealed its new Dar es Salaam to Lusaka route is proving particularly popular with the Zambian passengers.fastjet's (LON:FJET) latest passenger numbers revealed the Africa-focused budget airline is flying in the right direction.
In January its operations in Tanzania carried 31,241 passengers, achieving a load factor of 60%.
The average yield per passenger was US$88, compared with US$46 in the same month last year.
This gave total revenue of US$2.75mln, a 128% year-on-year rise based on a 27% rise increase in capacity.
fastjet also revealed its new Dar es Salaam to Lusaka route is proving particularly popular with the Zambian passengers. All of its flights out of Lusaka have been fully booked, and chief executive Ed Winter said he is confident that this route will “grow substantially."
On the latest figures, he said: "I am very satisfied with our performance for January.
“The post-Christmas period is traditionally one of the slowest months of the year but fastjet has avoided deep discounts and has successfully focused on maintaining a strong yield.
“An average yield of US$88 per passenger exceeded our expectations and the large growth in yield per passenger year-on-year clearly demonstrates the strong, continuing development of the Tanzanian air travel market and of the fastjet brand.”

[Wahalla]

it is still a close run thing....whether this airline will survive... this is some serious expansion in the last year...


FASTJET ANNOUNCES THE ADDITION OF A THIRD WEEKLY FLIGHT TO LUSAKA
(Posted 19th February 2014)
image165image166

Less than three weeks into their new international route to Lusaka / Zambia has FastJet already announced the addition of a third frequency. The Tanzania based LCC, which also serves Johannesburg out of Dar es Salaam, presently flies every Thursday and Saturday to Lusaka and come 15th of April a Tuesday frequency will be added. Flights on this service can be booked through any of the CRS’ FastJet is present on with immediate effect.
Richard Bodin, COO of FastJet, confirmed the developments yesterday when he said in a media release: ‘We are thrilled with the response to the launch of our Dar es Salaam to Lusaka route. Our research suggested that this was going to be a successful route with high demand but initial passenger numbers and interest have exceeded expectations. We expect to add still more capacity on this route – our target is to operate daily’.
Richard Bodin went on to say that plans to launch FastJet Zambia are progressing as the airline is in ongoing talks with the Zambian government: ‘Additionally, our plans to establish a base in Zambia are progressing well. A company named "FastJet Zambia" is being incorporated and we have commenced the process of obtaining an Air Operator Certificate in Lusaka’. The arrival of FastJet in Zambia is seen as a potential game changer for Zambian aviation, which has seen national and private airlines falter in the past and will bring hope for cheaper fares on the domestic routes as well as regional routes out of Zambia to Zimbabwe, Malawi, Botswana and of course South Africa. One source from Livingstone in fact wrote: ‘Tourism this year is doing better in Zambia but when FastJet starts flights, there will be plenty of opportunities to bring more visitors at affordable fares to Zambia from the region. I hope our Zambia Tourism marketers are having an eye on that and will partner with FastJet to promote Zambia as a destination’.
Watch this space for regular and breaking news from the Eastern African aviation scene.

[Wahalla]

Fastjet to roll out car hire and online parking services

By Giles GwinnettMarch 11 2014, 8:10am"fastjet will also continue to work in each of the local markets in which it operates to identify uniquely local ancillary products that help promote local commerce and increase customer satisfaction."Fastjet (LON:FJET) customers are set to be able to hire cars and book parking through the budget carrier's services - after it struck two travel agreements.
The joint ventures are with Rentalcars.com parentcompany, TravelJigsaw and Looking4Parking.com (L4P).
Ellis Cain-Jones, head of commercial, at Fastjet said: "Ancillary revenues are a key element of the low cost model and contribute to the airline's revenues.
"These joint-ventures, together with our rapidly developing on-board retail offering, are the first of a very exciting list of customer-centric productsFastjet expects to roll-out over the coming months.
"Fastjet will also continue to work in each of the local markets in which it operates to identify uniquely local ancillary products that help promote local commerce and increase customer satisfaction."
Ady Guthrie, of Rentalcars.com, said: "We're very excited by the prospect of Fastjet's continued growth within the Africanmarket and look forward to being able to offer top quality car hire brands to Fastjet customers.
"The joint venture with Looking4Parking will initially serve Fastjet passengers flying between Johannesburg and Dar es Salaam, offering parking at three sites at O R Tambo International Airport. The service will also be available in Cape Town and Durban, in preparation for Fastjet's expansion in the South Africa."
Opportunities to launch the secure parking service in other African airports where Fastjet has a presence will also be explored, he added.

Not only is this adding value but they are expanding routes to Cape Town and Durban... i hope it is routes from Tanzania or Zambia... this is why i am so excited by this company despite sitting on a huge loss at the moment despite consolidation... Africans traveling means commerce and sex....

[Wahalla]

Getting interesting an alternative low cost air line to start in Tanzania

This means more competition......Fly 540 has a connection to Fastjet....

Kenya's Fly-SAX Seeks Tanzania Flights -- Update

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By Marietta Cauchi LONDON--The battle over Africa's skies ramped up a notch Tuesday as Kenyan low-cost carrier Fly-SAX said it was awaiting regulatory approval to launch a new airline based in Tanzania, a move that would put the airline head-to-head with fastjet PLC.
Closely held Fly-SAX expects its SAX-Tanzania to make its maiden flight in the second half of the year with a fleet of small planes seating 12 to 80 passengers and serving some of the more remote parts of the country, according to a person familiar with the company's plans.
In time, Fly-SAX hopes to get government approval for SAX-Tanzania to fly internationally from Tanzania, in a bid to attract a bigger and more lucrative market, this person said.
"We are launching a new airline to meet the ever-increasing demand for low-cost, efficient and safe air travel within Tanzania from the country's own citizens as well as international tourists," said Don Smith, chief executive of Fly-SAX and Fly 540 Kenya, in a news release prepared for distribution Wednesday.
Fly-SAX has appointed Brown Francis as general manager of SAX-Tanzania. Mr. Francis joins from fastjet, where he was director for industry affairs for Tanzania.
U.K.-based rival fastjet operates nationally and internationally from Tanzania, where it has effectively become the national flag carrier and has the right to fly to South Africa and Zambia.
The opportunity in Africa for airlines in general, and in particular for a budget carrier, is enormous because of the robust growth of regional economies and the continued development of internationally trading industries.
These drivers have already triggered a significant rise in air travel. According to the latest data from trade body International Air Transport Association, air traffic measured by revenue passenger kilometers grew 5.1% from January to November 2013, compared with the same period in 2012.
In Tanzania alone, capacity per week has grown to 54,000 available seats per kilometer from just 37,000 five years ago, according to aviation-consulting firm Innovata.
Corrections & Amplifications
Fly-SAX said Tuesday it was awaiting regulatory approval to launch a new airline based in Tanzania. An earlier version of this article incorrectly reported it made that statement Wednesday.
Write to Marietta Cauchi at [email protected]

[Wahalla]

Last week i had a conversation with a fellow investor in Fast jet..

He too is sitting on a bunch of losses.... But his comment is that it has to happen.. if not this company then another.. each little step is a possible improvement in Africa... not sponsored by goveremnts but by priovate money..



Proflight Zambia And Fastjet Partner For New African Flight Routes

By Ann Brown Published: April 6, 2014, 07:00pm

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Travel across some parts of Africa will be easier now. Proflight Zambia and Fastjet have partnered to allow easier travel between 15 destinations across Zambia, Malawi and Tanzania.
“We have strengthened our partnerships with a number of airlines recently, [such as] Emirates, Kenyan Airways and Ethiopian Airlines as well as Precision Air,” Keira Irwin commercial director told CNBC Africa.
“We are willing to bring in more inclined partners on board to widen our route network that serves the existing travelling public and hoping to expand in small regional destination ourselves.”
Fastjet, an affordable airline based in Tanzania, will mainly service the air link between Dar es Salaam and Lusaka starting in May, including local Tanzanian routes from Dar es Salaam. Proflight will maintain its current domestic routes in Zambia and its link to Lilongwe in Malawi, from Lusaka.

- See more at: http://afkinsider.com/50334/profligh....SvHhoVSD.dpuf

[Wahalla]

over the weekend i heard this story a couple of times:: Nigeria is the largest economy in Africa...


Ghana did a similar rebasing in 2012, Uganda will be doing it next i suspect.....Africa is not as poor as it is made out....and it is improving... dont get me wrong there is still poverty... at the same thime there was a report on BBC of street children in Kano..... But when i made the point to the missing Johnny Cakes he repeatedly quoted UN statistics about 90% earning under a dollar a day... it was never that bad fro my experience..


there is hope in Africa and it will grow....

The mobile phone industry is now massive in Nigeria - 25 years ago, it did not exist
Continue reading the main storyNigeria - Troubled Giant

• Where’s the money?
• Viewpoints on 100 years
• Bad luck party?
• Booming illegal oil refineries

Nigeria has "rebased" its gross domestic product (GDP) data, which has pushed it above South Africa as the continent's biggest economy.
Nigerian GDP now includes previously uncounted industries like telecoms, information technology, music, online sales, airlines, and film production.
GDP for 2013 totalled 80.3 trillion naira (£307.6bn: $509.9bn), the Nigerian statistics office said.
That compares with South Africa's GDP of $370.3bn at the end of 2013.
'Changes nothing'However, some economists point out that Nigeria's economic output is underperforming because at 170 million people, its population is three times larger than South Africa's.
On a per-capita basis, South Africa's GDP numbers are three times larger than Nigeria's.
Continue reading the main story“Start Quote

Economies are dynamic things; they grow, they shrink, they add new sectors and technologies and people's behaviours change”

• What is 'rebasing'?

And Nigerian financial analyst Bismarck Rewane called the revisions "a vanity".
He added: "The Nigerian population is not better off tomorrow because of that announcement. It doesn't put more money in the bank, more food in their stomach. It changes nothing."
Rebasing is carried out so that a nation's GDP statistics give the most up-to-date picture of an economy as possible.
Most countries do it at least every three years or so, but Nigeria had not updated the components in its GDP base year since 1990.
Then, the country had one telecoms operator with around 300,000 phone lines. Now it has a whole mobile phone industry with tens of millions of subscribers.
Likewise, 24 years ago there was only one airline, and now there are many.
International aid donors are keen for more African countries to undertake this process regularly because it enables them to make better decisions when it comes to aid.

[Wahalla]

An African IPO in London....it looks lie it was purely institutional....!



Eoin O'Cinneide
09 April 2014 07:33 GMT


Nigerian independent is pushing for a market capitalisation of nearly $2 billion as it begins trading on the London and domestic bourses on Wednesday.

The company’s offer price in its initial public offering has come in slightly towards the lower end of its indicative range at £2.10 or 576 Nigerian naira (both $3.51) each.
The range given in late March was between £1.95 and £2.55, and between 535 and 700 naira.
Seplat is hoping to raise around £300.9 million from the flotation, which still equates to its previous estimated target of around $500 million.
The base float is of approximately 143.28 million shares, representing 26.4% of the enlarged share capital, exclusive of any over allotments of up to 10.34 million shares that may be exercised. Over allotments account for 15% of the offered amount of shares.
The number of shares being sold is at the upper end of the previous indicative range of between 118 million and 154 million.
The company will use proceeds to pay down debt and also chase new onshore and shallow-water offshore assets, either through acquisitions or farm-ins. Some $48 million will be used to pay off a shareholder loan.
Seplat’s development plan being sold to prospective shareholders is to bring at least one new field into production each year.
“The company expects that regulatory developments encouraging the transfer of oil and gas assets from international oil companies to Nigerian companies, and the shifting focus of international oil companies to offshore assets, will continue to give rise to further acquisition opportunities in the Niger Delta,” It said in its intention to float notice in March.
“The company believes it is well positioned to acquire additional blocks from international oil companies, local companies divesting their interests in the Niger Delta region, or through government tenders.”
Seplat has a 45% interest in and is operator of three oil blocks: OML 4, 38 and 41. Production is mostly from five fields: Sapele, Oben, Okporhuru, Ovhor and Amukpe.

[Wahalla]

ah bust....i am interested in the blocks to the north of this one operated by Ophir and Far Petroleum....

Sunbird Discovery in Block 10A Offshore Kenya Unlikely to be Commercial

by Pancontinental Oil and Gas NL
|
Press Release
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Monday, April 14, 2014

[*=left] [*=left] [*=left] [*=left] [*=left]More [*=left]Share: [*=left]Facebook [*=left]Twitter [*=left]Google+ [*=left]Reddit Pancontinental Oil and Gas NL, an Australian listed petroleum exploration company, revealed Monday that the Sunbird-1 well off the southern Kenyan coast has been completed and the well has intersected a hydrocarbon-bearing zone in the top of the Sunbird Miocene Pinnacle Reef. Analysis of the zone itself and recovered hydrocarbon samples are continuing. Analysis of the wireline log data and the fluid samples recovered from the limestone reservoir is complex due to the large volume of drilling fluid, seawater and cement lost to highly porous and permeable zones in the Sunbird Reef, including into the hydrocarbon bearing zone. Both gas and liquid samples have been recovered. In addition to the recovered gas, the nature of the liquid samples and whether or not these contain naturally occurring hydrocarbon liquids (oil or condensate) remains to be determined by further analysis. The top of the Sunbird Miocene Pinnacle Reef was reached at 5,195 feet (1,583.7 meters) subsea. The water depth is 2,372 feet (723 meters). The 143 foot (43.6 meter) gross hydrocarbon bearing zone is currently assessed to contain a net pay thickness of 91 foot (27.8 meter). In this case, net pay is defined as the cumulative thickness of zones having porosity of 10 percent or greater. Zones with porosity lower than 10 percent are not included in the net pay assessment. At this stage, due to its estimated size, the Sunbird discovery itself is considered unlikely to be commercial. Pancontinental has an 18.75 percent interest in the well and block L10A. The Operator of the Block L10A Petroleum Sharing Contract, BG Group, is continuing to assess the results for the L10A consortium and will recommend a follow-up program. A further statement regarding the discovery will be made once the remaining analyses have been completed. Sunbird-1 has now been “plugged and abandoned” in accordance with the planned drilling program, meaning that the well has been made safe in such a way that it can be left permanently without further intervention. These measures are designed to ensure that there is no danger of leakage of oil or gas within the well or to the sea floor. Pancontinental’s CEO Barry Rushworth said the implications for regional exploration were very positive. “The drilling operation using the Deepsea Metro 1 (UDW drillship) has been completed, with the well drilling into a hydrocarbon-bearing carbonate reef reservoir that was highly porous and permeable” Rushworth said. “We await the results of the continuing analysis of the data acquired from the well”. “We encountered a thick and effective seal over the top of the Sunbird Reef, which was an initial risk for us, and the regional follow-on implications are truly great. Porosity, permeability and seal for the reservoir were all better than Pancontinental expected”. “While the high quality of parts of the reservoir, in terms of porosity and permeability, resulted in the loss of quantities of drilling fluids and consequently the analysis of the hydrocarbon column has been made difficult, we expect to have a conclusive result after further analysis”. “We look forward to receiving the full and final Sunbird results and we believe that we are now in an excellent position to explore for larger volumes of gas and oil over our very extensive portfolio of prospects and leads offshore Kenya”. Future Exploration The L10A joint venture is considering follow-up exploration activities after the Sunbird-1 discovery. The Sunbird discovery is expected to yield important details of the hydrocarbon system in the Lamu Basin, including the age of the source rock and the timing of generation. L10A covers a variety of play types, prospects and leads. Many of the prospects have been defined using the two 3D seismic surveys carried out by the joint venture. The Sunbird Prospect is one of an inboard cluster of Miocene reefs. Outboard prospects include Tertiary and Cretaceous channels, large anticlinal complexes and series of Cretaceous and Tertiary fault bounded prospects. Other offshore Kenyan activity includes an exploration well to be drilled by Anadarko, as recently announced for later in 2014.

- See more at: http://www.rigzone.com/news/oil_gas/....igV01kNo.dpuf

[Wahalla]

As it gets more and more connected to the outside travel sites its possibilities expands.... it would be good to get a connection Ghana angola...

Fastjet and Expedia form global partnership


By Michelle McGagh | Fri, 25th April 2014 - 13:08



Low-cost African airline Fastjet (FJET) has announced a global partnership agreement with online travel comparison site Expedia (EPEU).Fastjet flights will now be available to travellers who book through the Expedia website and its other operating brands such as online discount travel site Hotwire and business travel agency Egencia that operates in over 60 countries.
The AIM-listed airline operates routes across South Africa, Tanzania and Zambia and has plans to launch in Ghana and Angola.
Expedia senior vice president of global tour and transport Greg Schulze said travellers "are increasingly exploring Africa".
"We can now provide Fastjet flights amongst our broad selection of products and services," he said.
Ellis Cain-Jones, head of commercial at Fastjet, said the partnership "represents a giant leap in the implementation of our digital distribution strategy" which will focus initially on increasing internet bookings within Africa and then move into international markets.
"The global reach of Expedia group's brands will make Fastjet accessible in a vast number of international markets," said Cain-Jones

[Wahalla]

It is a good day... for fast jet..... Last week they did a share offer at 1.6 p... it took my full alotment... today shares up to 2.1p..

And this

Restructuring of Fly 540 Angola and Ghana

fastjet, Africa's low cost airline, today confirms that as previously announced, two of its loss-making Fly540 businesses are being restructured with the objective of increasing shareholder value. The Fly 540 businesses operate on a traditional airline model and not the fastjet low cost model.

After a detailed evaluation of the potential of Fly540 in both Ghana and Angola, fastjet has concluded that, although these countries present very significant long-term opportunities for the fastjet low cost model, in the short term fastjet intends to fully focus on the considerable potential of opportunities in East and Southern Africa. As a key part of the restructuring, two group-owned ATR aircraft previously operating in Ghana and Angola have been taken out of service and are currently in the process of being sold. While a leased aircraft continues to operate in Ghana, the Angolan operation has been temporarily suspended, pending the return to service of two leased aircraft on completion of required maintenance. Further details on the restructuring of both 540 operations will be announced in due course.

Fastjet interim chairman and CEO, Ed Winter, said: "Management has been carefully considering how best to restructure the Fly540 business which we inherited and this is a highly significant and very positive development in that process.

"We are currently focused on expanding the low cost fastjet network in East and Southern Africa by establishing bases in Zambia, Kenya and South Africa and these plans are progressing well. However, our overall vision is to create a pan-African low-cost network and, as such, launching the low cost fastjet model in both Angola and Ghana remains firmly part of the Company's long-term plans."