VANCOUVER, BC, Dec. 17,
2020 /CNW/ - (TSX: AOI) (Nasdaq-Stockholm: AOI) – Africa Oil
Corp. ("AOI", "Africa Oil" or "the Company") is pleased to announce
that it has received its sixth dividend from Prime Oil and Gas B.V.
("Prime"). View PDF version.
Prime has distributed a US$75.0
million dividend with a net payment to Africa Oil of
US$37.5 million related to its 50%
shareholding. The Company intends to apply US$23.8 million of this dividend to reduce the
outstanding balance of the BTG term loan to US$141 million. The Company has received a total
dividend amount of US$200 million
since the closing of the Prime acquisition on 14 January 2020.
Keith Hill, Africa Oil's
President and CEO, in a message to the Company's shareholders
"Prime has performed very well during what has been one of the
most challenging years for our industry. As well as its dividend
distributions, I am also pleased to see Prime deleveraging its
balance sheet. It has reduced its RBL debt by $522 million or 29% of the principal amount at
the start of the year. I am also happy to report that Africa Oil
will reduce its corporate term loan by US$109 million or 44% of the original amount by
the end of this year, once payment from this latest dividend is
applied. We plan to fully repay this loan next year well before the
January 2022 maturity date.
As we look forward to the new year there is increasing optimism
for the global economy to emerge from the impact of COVID-19
pandemic, and for a sustained recovery in the energy markets. We
have put the Company in a strong position to benefit in this
recovery phase, with our high-quality producing assets supporting
our growth opportunities. These include our indirect interest in
Block 11B/12B, offshore South
Africa. Luiperd discovery was a tremendous exploration
success this year, and together with last year's Brulpadda
discovery, the project is now transitioning from exploration to
commercialisation. This success is a great endorsement of our
focused regional exploration strategy. We are now looking forward
to the drilling of Venus-1 well offshore Namibia in 2021, which will target one of the
largest submarine fan plays ever tested by the industry.
We are also working closely with the Government of Kenya and our JV partners to progress the
South Lokichar development project. Despite the delays, the Board
and I are confident there is significant potential in this project
and our objective for the next year is to deliver a robust field
development plan for a very modest expenditure, which is possible
considering the significant amount of work already carried out.
It has been a tremendously difficult year for everyone, and
while we are quite hopeful for a full recovery in the New Year, we
will continue our policy of hope for the best but plan for the
worst with respect to the economy and resultant oil price. I would
like to take this opportunity to thank our shareholders for their
continuing support and to wish you all a happy festive period."
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
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 December
17, 2020 at 1:00 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
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.