VANCOUVER, BC, June 29, 2021 /CNW/ - (TSX: AOI)
(Nasdaq-Stockholm: AOI) – Africa Oil Corp. ("AOI", "Africa Oil" or
"the Company") is pleased to announce that it has received its
seventh dividend from Prime Oil and Gas Cooperatief UA ("Prime").
The Company is also pleased to update the markets on a significant
increase in the Egina oil field production. View PDF version.
Prime has distributed a $75.0
million dividend with a net payment to Africa Oil of
$37.5 million related to its 50%
shareholding. The Company intends to apply $18 million from the latest dividend to reduce
the outstanding balance of the BTG term loan ("Term Loan") to
Africa Oil management expect to refinance the Term Loan at the
end of July 2021, from the proceeds
of the new corporate loan ("Corporate Facility") as announced on
May 13, 2021. The utilisation of
Corporate Facility is subject to the satisfaction of customary
conditions precedents and the Company is on track to complete these
prior to the end of July.
Prime is also expected to repay $136
million of its outstanding reserves based lending ("RBL")
facility amount by end of this month, reducing the outstanding
balance to about $1,114 million. This
takes Prime's total RBL repayment in the last 18 months to
$711 million, representing a 39% debt
reduction. Prime is expected to end the second quarter of 2021 with
a cash balance of at least $240
million after the dividend distribution and RBL
Egina's production continues to increase due to the relaxation
of its OPEC+ quota restriction. For the month of June, the field's
quota increased to 173 thousand barrels of oil per day ("kbopd").
This compares to Egina's First Quarter 2021 average daily
production of 152 kbpod. The field's July and August quotas have
been approved at 181 kbopd and 177 kbopd, respectively.
Keith Hill, Africa Oil's
President and CEO, commented: "Prime's assets have performed better
than expected during the first half of this year and strong cash
flows from operations, have significantly bolstered Prime's cash
reserves. Prime is in a strong position to distribute dividends,
whilst maintaining sufficient liquidity to deliver its business
plan. Africa Oil's outlook for the second half of this year is very
promising as we look forward to higher production rates from Egina,
the corporate loan refinance that significantly reduces our cost of
capital and high impact exploration catalysts offshore Namibia, South
Africa and Guyana."
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
All dollar amounts are in United
States dollars unless otherwise indicated.
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 June 29,
2021 at 1:00 a.m. ET.
Advisory Regarding Oil and Gas Information
This press release refers to the Egina oil field. The production
data presented is on a gross field basis and in the conventional
light and medium gravity oil category.
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.