VANCOUVER, BC, Nov. 30, 2021 /CNW/ - (TSX: AOI)
(Nasdaq-Stockholm: AOI) – Africa Oil Corp. ("AOI", "Africa Oil" or
"the Company") is pleased to announce that it has received a
dividend from Prime Oil and Gas Cooperatief UA ("Prime"). View PDF
version.
Prime has distributed a US$100
million dividend with a net payment to Africa Oil of
US$50 million related to its 50%
shareholding. Since acquiring its 50% shareholding in Prime for a
cash consideration of $520 million in
January 2020, Africa Oil has received
ten dividends from Prime for a total amount of $400 million, representing 77% of the cash
consideration paid.
The Company intends to apply US$23
million from the latest dividend, to repay the outstanding
balance of its corporate loan and will subsequently become
debt-free. The Company will continue to have access to an undrawn
availability of $62 million under its
corporate loan facility. This undrawn amount is available until
May 2022 and can be utilised for
general corporate purposes, subject to customary covenants. The
Company also had a cash balance of $38.9
million as of September 30,
2021.
Keith Hill, Africa Oil's
President and CEO, commented: "It is less than two years since we
closed the acquisition of our 50% shareholding in Prime for
$520 million. We have so far received
$400 million in dividends, and I am
pleased that we have repaid the $250
million loan that was arranged for this acquisition.
Considering the strength of our debt-free balance sheet, access to
material credit liquidity, our share of Prime's cash resources and
future cash flows, I am confident that we can deliver on our
strategic objectives of shareholder capital returns and the
acquisition of producing assets. And of course, most immediately,
we look forward to the drilling results from our high impact
Venus-1 exploration well, offshore Namibia."
The Company also reports the following share capital and voting
rights update in accordance with the Swedish Financial Instruments
Trading Act. As a result of the issuance of 105,904 common shares
in connection with the settlement of restricted share units under
the Company's long-term incentive plan during the month, the number
of issued and outstanding shares of the Company has increased to
474,467,355 common shares with voting rights as at November 30, 2021.
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 and the
Swedish Financial Instruments Trading Act. The information was
submitted for publication, through the agency of the contact person
set out above on November 30, 2021 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
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.