VANCOUVER, BC, Oct. 1, 2020 /CNW/ - (TSX: AOI)
(Nasdaq-Stockholm: AOI) – Africa Oil Corp. ("AOI",
"Africa Oil" or "the Company") is pleased to provide an update on
Prime Oil & Gas B.V. ("Prime") Reserve Base Lending facility
("RBL"). Africa Oil has a 50% shareholding in Prime, a company with
deepwater producing assets offshore Nigeria. View PDF version
The September redetermination of the Prime RBL has been approved
by the banking syndicate with a total principal amortisation for
2020 of US$522 million. This is
US$108 million less than management's
initial guidance of US$630 million as
announced on February
25th, 2020.
As a result of this outcome and Prime's large cash surplus,
Prime with the support of its shareholders has elected to repay and
cancel US$297 million of the RBL
principal on September
30th, 2020, which will satisfy the scheduled
repayments for the third and fourth quarters of 2020. The early
settlement of the fourth quarter repayment will result in
US$2 million of savings in interests
and fees during the next three months. Prime is not expected to
make any further principal repayment until the results of the next
RBL redetermination scheduled to be finished on 31st
March 2021. The outstanding RBL
principal amount now stands at US$1,303
million.
Africa Oil is also pleased to confirm that Prime has sold all
three planned oil cargoes in September
2020 for a combined sales volume of approximately 2.8
million barrels ("mmbbl") (1.4 mmbbl net to Africa Oil's 50%
shareholding in Prime) at an average price of US$60 per barrel. A further three cargoes
scheduled for the fourth quarter 2020 (approximately 3.0 mmbbl or
1.5 mmbbl net to Africa Oil's 50% interest) have been sold forward
at an average price of US$61 per
barrel, and 7 of 10 cargoes planned for the first half of 2021
(approximately 7.0 mmbbl or 3.5 mmbbl net to Africa Oil's 50%
interest) have been sold forward or hedged at an average price of
$60 per barrel.
Africa Oil CEO Keith Hill
commented, "We are very pleased with the endorsement by the lending
banks of our Nigeria deepwater
assets. The ability for Prime to repay 29% of its outstanding debt
in these difficult market conditions is a testament to the quality
of Prime's low-cost producing assets that are further strengthened
by Prime's industry leading hedging position. Prime's cash flows
provide us with a strong platform to deliver growth and value
creation from our portfolio of exploration and development
opportunities. Most immediately we are looking forward to the
results of the Luiperd well that is currently drilling on Block
11B/12B
offshore South Africa and to which
we have significant exposure through our equity investments in
Africa Energy and Impact Oil and Gas."
Africa Oil Corp. is a Canadian oil and gas company with
producing and development assets in deepwater Nigeria; development assets in Kenya; and an exploration/appraisal portfolio
in Africa and Guyana. The Company is listed on the Toronto
Stock Exchange and on Nasdaq Stockholm under the symbol
"AOI".
This information is information that Africa Oil Corp. is obliged
to make public pursuant to the EU Market Abuse Regulation. The
information was submitted for publication, through the agency of
the contact person set out below on October
1, 2020 at 2:00 a.m. ET.
Forward Looking Information
Certain statements and information contained herein constitute
"forward-looking information" (within the meaning of applicable
Canadian securities legislation). Such statements and information
(together, "forward looking statements") relate to future events or
the Company's future performance, business prospects or
opportunities.
All statements other than statements of historical fact may be
forward-looking statements. Any statements that express or involve
discussions with respect to predictions, expectations, beliefs,
plans, projections, objectives, assumptions or future events or
performance (often, but not always, using words or phrases such as
"seek", "anticipate", "plan", "continue", "estimate", "expect,
"may", "will", "project", "predict", "potential", "targeting",
"intend", "could", "might", "should", "believe" and similar
expressions) are not statements of historical fact and may be
"forward-looking statements". Forward-looking statements involve
known and unknown risks, ongoing uncertainties and other factors
that may cause actual results or events to differ materially from
those anticipated in such forward-looking statements. No assurance
can be given that these expectations will prove to be correct and
such forward-looking statements should not be unduly relied upon.
The Company does not intend, and does not assume any obligation, to
update these forward-looking statements, except as required by
applicable laws. Actual results may differ materially from those
expressed or implied by such forward-looking statements.
SOURCE Africa Oil Corp.