Unconventional oil is everywhere

AOS: I would say that I don't see that risk capital coming back for some time. It will be very opportunity specific and success driven. You want to look for companies that have the ability to survive for a while with the cash in the bank, are underpinned by real assets with a real value, and also can provide the excitement and possibility of a geometric return on investment.

James Stafford: And does AOS qualify for those criteria?

AOS: Not to toot our own horn here James, but my view of the world is: AOS is trading at just above cash value. Our combined PV10 between Clearwater and Grand Rapids is $823 million--or about 225X our market cap net of cash. We have a very small burn rate. We have multiple catalysts that can take us much higher in the next few months, including: Success in Namibia by HRT in September; approval at Clearwater for production in Q4; partners on our vast African acreage, or other discoveries near our rift acreage; demonstration of cold-flowing reservoirs at Algar Lake; and a strategic partner for Clearwater or Grand Rapids.

If any of these things come to fruition I think that the market and our own shareholders will sit up and take notice again and realize that right now they get all of those potential outcomes for free while we sit trading at cash value, with 500 million barrels of oil booked, and 21 million acres of prime exploration ground with 100s of millions of dollars being spent right around it.

James Stafford: Thanks very much for sharing your views with us on both the African landscape for exploration and discovery, as well as the outlook for heavy oil prices and oil sands development in Canada.