VANCOUVER, May 9, 2019 /CNW/ - (AOI–TSX,
AOI–Nasdaq-Stockholm) … Africa Oil Corp. ("Africa Oil" or the
"Company") is pleased to announce its financial and operating
results for the three months ended March 31,
2019. View PDF version.
HIGHLIGHTS:
- The Company ended the quarter with cash of $355.2 million and working capital of
$321.9 million;
- During the first quarter of 2019, the Company completed the
acquisition of an additional 19,890,560 shares of Impact Oil and
Gas Limited ("Impact") for an aggregate subscription price of
$6.3 million. Africa Oil currently
owns approximately 30.1% of Impact;
- On February 6, 2019, a
significant discovery was announced at the Brulpadda-1AX well on
Block 11B/12B offshore South
Africa. Africa Oil holds an indirect interest in the project
as a result of its equity interests in Africa Energy Corp. (34.5%
ownership interest) and Impact Oil and Gas Limited (30.1% ownership
interest);
- Subsequent to the first quarter, the Company announced that it
had acquired 4,752,850 common shares of Eco (Atlantic) Oil and Gas
Ltd. ("Eco") for total consideration of $5.0
million. The common shares were acquired by Africa Oil on a
non-brokered private placement basis and, together with the
29,200,000 common shares of Eco held by the Company prior to the
acquisition, increased its ownership interest to approximately
18.8%. Eco plans to participate in a high impact exploration
drilling program on its acreage in Guyana commencing later in 2019;
- The Joint Venture Partners (Blocks 10BB and 13T – Kenya) continue to negotiate key commercial
agreements with the Government of Kenya, expected to establish the commercial
structure associated with field development;
- Upstream and midstream Front End Engineering and Design
("FEED") studies (Blocks 10BB and 13T – Kenya) are being finalized and the
Environmental and Social Impact Assessments ("ESIA") remain on
track for submission to the National Environmental Agency at the
end of the second quarter;
- The transfer of stored crude oil from the South Lokichar basin
(Blocks 10BB and 13T – Kenya) to
Mombasa by road continues, with trucks continuing to be dispatched,
transporting approximately 600 bopd. To date, approximately 88,000
barrels of oil has been transported to Mombasa. The volume of oil
transported by truck is expected to increase to 2,000 bopd once the
Early Oil Production System is fully operational from the Amosing
temporary production facility and Regulatory Authority approval is
received. The first lifting of sweet Kenyan crude oil stored in
Mombasa is expected in the second half of 2019;
- In October 2018, the Company
announced it had entered into a share purchase agreement to acquire
an effective 12.5% ownership interest in a company who holds
interests in multiple producing and developing fields offshore
Nigeria (please refer to press
release dated 31st October
2018). Completion of the transaction is subject to customary
conditions precedent, including Nigerian Government consent;
Africa Oil Corp. has a 25% working interest in Blocks 10BB and
13T with Tullow Oil plc (50% and Operator) and TOTAL S.A. (25%)
holding the remaining interests.
2019 First Quarter Financial Results
(Thousands United
States Dollars, except Per Share and Share Amounts)
|
|
|
|
|
|
March 31,
2019
|
December 31,
2018
|
|
|
|
|
|
Cash and cash
equivalents
|
355,230
|
370,337
|
Total
assets
|
957,541
|
953,911
|
Total
liabilities
|
35,648
|
31,831
|
Total equity
attributable to common shareholders
|
921,893
|
922,080
|
Working
capital
|
321,921
|
340,745
|
|
|
|
|
|
|
|
Three months
ended
March 31, 2019
|
|
Three months
ended
March 31, 2018
|
|
|
|
|
|
Operating
expenses
|
|
2,875
|
|
2,575
|
Net loss
|
|
511
|
|
1,326
|
Net loss per share
(basic and diluted)
|
|
0.00
|
|
0.00
|
Weighted average
number of shares outstanding (basic and diluted) ('000s)
|
|
470,654
|
|
460,339
|
Number of shares
outstanding ('000s)
|
|
471,214
|
|
470,568
|
|
|
|
|
|
Cash flows provide by
(used in) operations
|
|
827
|
|
(358)
|
Cash flows provide by
(used in) investing
|
|
(15,232)
|
|
(12,457)
|
Cash flows provide by
(used in) financing
|
|
(695)
|
|
(568)
|
Total change in cash
and cash equivalents
|
|
(15,107)
|
|
(13,384)
|
|
|
|
|
|
Change in share
capital
|
|
824
|
|
14,333
|
Change in contributed
surplus
|
|
(500)
|
|
201
|
Change in
deficit
|
|
(511)
|
|
(1,326)
|
Total change in
equity
|
|
(187)
|
|
13,208
|
|
|
|
|
|
The financial information in this table was selected from the
Company's unaudited consolidated financial statements for the three
months ended March 31, 2019. The
Company's consolidated financial statements, notes to the financial
statements, management's discussion and analysis for the three
months ended March 31, 2019 and 2018,
and the 2018 Annual Information Form have been filed on SEDAR
(www.sedar.com) and are available on the Company's website
(www.africaoilcorp.com).
FINANCIAL POSITION AND EARNINGS
The Company ended the first quarter of 2019 with cash of
$355.2 million and working capital of
$321.9 million in comparison to cash
of $370.3 million and working capital
of $340.7 million at the end of 2018.
Africa Oil is debt free. Investments in intangible exploration
expenditures of $13.1 million were
incurred during the three months ended March
31, 2019 (three months ended March
31, 2018 - $11.0 million).
These expenditures relate primarily to the Company's share of
appraisal stage projects (Blocks 10BB and 13T – Kenya) and include expenditures related to the
following activities: geological and geophysical studies,
development studies (including upstream and midstream FEEDs, land
acquisition, ESIAs, water acquisition and subsurface reservoir
studies) and general and administrative costs incurred in relation
the Company's Production Sharing Agreements. An additional
$6.3 million investment was made in
Impact during the three months ended March
31, 2019.
Operating expenses remained fairly consistent, increasing
$0.3 million during the first quarter
of 2019 in comparison to the same period in 2018. The share of loss
from equity investment increased $0.5
million during the three months ended March 31, 2019. This increase was offset by a
decrease in travel as well as office and general expenses amounting
to $0.2 million.
About Africa oil
Africa Oil Corp. is a Canadian oil and gas company with assets
in Kenya and has recently signed
an agreement to acquire an interest in a producing asset in
deepwater Nigeria. The Company is
listed on the Toronto Stock Exchange and on Nasdaq Stockholm under
the symbol "AOI".
Additional Information
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 May 9,
2019 at 8:00 p.m. Toronto
Time.
FORWARD LOOKING INFORMATION
Certain statements made 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. Forward-looking statements include, but
are not limited to, statements with respect to estimates of
reserves and or resources, future production levels, future capital
expenditures and their allocation to exploration and development
activities, future drilling and other exploration and development
activities, ultimate recovery of reserves or resources and dates by
which certain areas will be explored, developed or reach expected
operating capacity, that are based on forecasts of future results,
estimates of amounts not yet determinable and assumptions of
management.
All statements other than statements of historical fact may be
forward-looking statements. Statements concerning proven and
probable reserves and resource estimates may also be deemed to
constitute forward-looking statements and reflect conclusions that
are based on certain assumptions that the reserves and resources
can be economically exploited. 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, including the results of future exploratory activity in
the Brulpadda-1AX well, anticipated date, results and costs of the
lifting of the sweet Kenyan crude oil stored in Mombasa, the
completion of the Company's upstream and midstream Front End
Engineering and Design studies, the completion of the Company's
Environmental and Social Impact Assessments and submission of same
to the National Environmental Agency, the Company's negotiations
with its Joint Venture Partners and the Government of Kenya, and the completion of the Company's
transaction(s) in Nigeria. The
Company believes that the expectations reflected in those
forward-looking statements are reasonable, but 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. These forward-looking statements involve risks and
uncertainties relating to, among other things, changes in oil
prices, results of exploration and development activities,
uninsured risks, regulatory changes, defects in title, availability
of materials and equipment, timeliness of government or other
regulatory approvals, actual performance of facilities,
availability of financing on reasonable terms, availability of
third party service providers, equipment and processes relative to
specifications and expectations and unanticipated environmental
impacts on operations. Actual results may differ materially from
those expressed or implied by such forward-looking statements.
ON BEHALF OF THE BOARD
"Keith C. Hill"
President and CEO
SOURCE Africa Oil Corp.