VANCOUVER, BC, Dec. 16, 2021 /CNW/ - Africa Oil Corp.
(TSX: AOI) (Nasdaq Stockholm: AOI) … Chairman of the
Board, John Craig publishes a letter
to the shareholders. View PDF version
Dear Africa Oil shareholders,
I am pleased to write to you as we near end of 2021, a very
strong year for your company. Our success is underpinned by our
investment in Prime Oil and Gas Cooperatief UA ("Prime"). With its
strong production and cash flow performance, Prime has served us
very well during the most volatile and challenging period for the
industry. Your Board of Directors continue to be very positive on
this investment and we are confident that it provides us with a
stable platform to support future investment opportunities and
return of capital to you.
Our notable 2021 achievement is the deleveraging of our balance
sheet that was the priority goal for the Board. This was
accompanied by an attractive refinancing of Africa Oil's corporate
loan that saw a substantial reduction in our cost of borrowing and
an enhanced maturity profile. I am delighted that we are ahead of
our plan to reduce debt, having reached a debt-free corporate
balance sheet ahead of expectations. This provides us with the
flexibility to expand and accelerate our capital allocation plans
in a disciplined manner. We must strike the right balance between
maintaining an appropriate cash buffer, stable balance sheet and
allocating capital for shareholder returns and acquisitions.
The Board have discussed shareholder capital return options and
are supportive of implementing the selected program in the new
year. The details are being finalised and will be communicated to
you with the company's full-year results in February 2022, subject to obtaining the external
approvals.
The Board of Directors are also pleased with the work undertaken
by management to improve Africa Oil's ESG performance, particularly
in relation to our greenhouse gas emissions. Africa Oil published
its maiden ESG Review earlier this year. This was an important
milestone to re-iterate that management and the Board recognize the
importance of maintaining robust governance systems for
identifying, disclosing and managing climate risk, in line with our
commitment to prioritize ESG performance. The company has also made
the strategic appointment of the VP of ESG with leadership
responsibility to implement these systems. Management are working
with our partners to identify and advance opportunities to
reduce and offset our emissions.
As I look forward to next year, I am confident that Africa Oil
is in great shape to take advantage of the recovery from the
COVID-19 pandemic, whilst being resilient to the short term
setbacks. We have an exciting outlook with a number of attractive
catalysts for shareholder value creation across our balanced
portfolio, supported by a healthy financial footing. I thank you
for your support and I wish you a happy festive period and new
year.
Yours faithfully,
John Craig, Chairman of the
Board
December 16th, 2021
About Africa Oil
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 above on December
16, 2021 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. 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 statements pertaining to
implementing a shareholder capital returns program and
communicating the details in February
2022, allocating capital for acquisitions, future catalysts
for shareholder value creation, recovery from COVID-19 pandemic and
opportunities to reduce emissions. 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
macro-economic conditions and their impact on operations, changes
in oil prices, results of exploration and development activities,
cost overruns, uninsured risks, regulatory and fiscal changes,
defects in title, claims and legal proceedings, availability of
materials and equipment, availability of skilled personnel,
timeliness of government or other regulatory approvals, actual
performance of facilities, joint venture partner underperformance,
availability of financing on reasonable terms, availability of
third party service providers, equipment and processes relative to
specifications and expectations and unanticipated environmental,
health and safety impacts on operations. Actual results may differ
materially from those expressed or implied by such forward-looking
statements.
SOURCE Africa Oil Corp.