{"id":13692,"date":"2023-05-15T05:51:49","date_gmt":"2023-05-15T05:51:49","guid":{"rendered":"https:\/\/www.oilnewskenya.com\/?p=13692"},"modified":"2023-05-15T05:53:51","modified_gmt":"2023-05-15T05:53:51","slug":"africa-oil-announces-q1-2023-results","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/africa-oil-announces-q1-2023-results\/","title":{"rendered":"Africa Oil announces Q1 2023 results"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Highlights<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The high impact Venus appraisal campaign commenced with the spud of Venus-1A well, located 13km to the north of the discovery well Venus-1X, on&nbsp;March 4, 2023. A second drilling rig is expected to join the campaign soon.<\/li>\n\n\n\n<li>On&nbsp;April 27, 2023, the Company subscribed for 39,455,741 shares in Impact for&nbsp;$31.4 million, payable in two tranches, and following the transaction the Company will ultimately hold 31.1% of the enlarged share capital in Impact.<\/li>\n\n\n\n<li>The OML 130 drilling campaign commenced on&nbsp;February 22, 2023, with the spud of the first infill well on the Egina oil field. This is the first well in a multi-well program that is planned for up to 9 wells on Egina and Akpo in the license area during 2023 and 2024.<\/li>\n\n\n\n<li>Cash position of Prime* net to the Company&#8217;s 50% shareholding of&nbsp;$198.5 million&nbsp;and debt balance of&nbsp;$360.2 million&nbsp;at&nbsp;March 31, 2023, resulting in a Prime net debt position of&nbsp;$161.7 million, which is a further deleveraging of Prime since Q4 2022.<\/li>\n\n\n\n<li>AOC&#8217;s cash and cash equivalents at&nbsp;March 31, 2023, of&nbsp;$158.2 million.<\/li>\n\n\n\n<li>The Company declared and paid a semi-annual dividend of&nbsp;$0.025&nbsp;per share (approximately&nbsp;$11.5 million) at the end of&nbsp;March 2023. Since end of&nbsp;March 2022, the Company has returned more than&nbsp;$80.0 million&nbsp;to its shareholders through the share buyback program and the dividend policy.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Africa Oil President and CEO\u00a0Keith Hill\u00a0commented<\/strong>: &#8220;The Venus appraisal program is progressing per our expectation with a second rig, DeepSea Mira, expected to arrive in\u00a0Namibia\u00a0shortly to join the campaign. As already reported, we stood our corner in Impact&#8217;s Open Offer and will ultimately increase our shareholding in Impact to 31.1%. The interest in Impact provides our shareholders with material exposure to, possibly the most exciting appraisal and exploration work program globally during 2023. We remain the only publicly-listed Independent E&amp;P company with exposure to Venus and its possible westerly extension that will be explored later this year. I am pleased that first quarter 2023 was another robust quarterly period for Prime as demonstrated by its EBITDAX and cash from operations metrics. We have high quality production assets in\u00a0Nigeria, held through our shareholding in Prime and, these are complemented by our exciting and potentially high impact exploration assets. These include attractive infrastructure-led exploration opportunities in\u00a0Equatorial Guinea, together with our Block\u00a03B\/4B\u00a0exploration inventory in the Orange Basin, that lie on trend with the recent oil discoveries offshore\u00a0Namibia.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Namibia Orange Basin \u2013 Venus Oil Discovery<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The multi-well appraisal and exploration campaign in&nbsp;Namibia&#8217;s&nbsp;Orange Basin commenced on&nbsp;March 4, 2023. This program is targeting up to four wells (including the re-entry of Venus-1X discovery well, in Block&nbsp;2913B), to appraise the Venus light oil discovery and to investigate a potential westerly extension of Venus, the Nara prospect on Block 2912.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Africa Oil has an interest in this program through its shareholding in Impact Oil and Gas Ltd. (&#8220;Impact&#8221;), which in turn has a 20.0% WI in Block&nbsp;2913B&nbsp;and a 18.9% WI in Block 2912, giving Africa Oil effective interests of 6.2% and 5.9% in these blocks respectively. Africa Oil is the only publicly-listed Independent E&amp;P company with an effective economic interest in Venus, understood to be the world&#8217;s largest oil discovery in 2022.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Impact closed an Open Offer to its shareholders on\u00a0April 27, 2023, to raise\u00a0$95.0 million. The proceeds from the Open Offer, together with Impact&#8217;s existing cash reserves will be used to fund Impact&#8217;s share of the 2023 drilling and DST campaign.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Other Exploration<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In the three months ended&nbsp;March 31, 2023, expenditure of&nbsp;$7.7 million&nbsp;was incurred following the signing of the PSCs for Blocks EG-18 and EG-31 and mainly related to the acquisition of seismic data.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">South Africa<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On&nbsp;March 8, 2023, the Company published an independent review of prospective resources in Block&nbsp;3B\/4B&nbsp;by RISC Advisory (UK) Limited (&#8220;RISC&#8221;). This was prepared in accordance with Canadian National Instrument 51-101 \u2013 Standards for Oil and Gas Activities (&#8220;NI51-101&#8221;), the Canadian Oil and Gas Evaluation Handbook (&#8220;COGE Handbook&#8221;) and the Petroleum Resources Management System 2018 (&#8220;PRMS&#8221;).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">RISC reviewed the prospective resources and probability of geological success of an inventory of exploration prospects within Block&nbsp;3B\/4B&nbsp;and reported total unrisked gross P50 prospective resources of approximately 4 billion barrels of oil equivalent. Please refer to the Company&#8217;s press release of&nbsp;March 8<sup>th<\/sup>, 2023, announcing the publication of this report for more details. The independent review can also be found on the Company&#8217;s website:&nbsp;<a href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3864849-1&amp;h=242900111&amp;u=https%3A%2F%2Fafricaoilcorp.com%2Foperations%2Fblock-3b-4b%2F&amp;a=https%3A%2F%2Fafricaoilcorp.com%2Foperations%2Fblock-3b-4b%2F\">https:\/\/africaoilcorp.com\/operations\/block-3b-4b\/<\/a>&nbsp;.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Company and its JV partners are progress<a href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3864849-1&amp;h=2891457069&amp;u=https%3A%2F%2Fafricaoilcorp-my.sharepoint.com%2Fpersonal%2Fshahin_amini_africaoilcorp_com%2FDocuments%2FNews%2520Releases%2Fing%2520plans%2520to%2520conduct&amp;a=ing+plans+to+conduct+\">ing plans to conduct&nbsp;<\/a>a two-well campaign on Block&nbsp;3B\/4B&nbsp;and are in discussions with various potential partners to farm out up to a 55% gross working interest in the Block. The JV Partners have selected a leading South African environmental consulting firm to conduct a comprehensive Environmental and Social Impact Assessment (&#8220;ESIA&#8221;) process in preparation for permitting and drilling activity on the Block.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Equatorial Guinea<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On\u00a0February 20, 2023, the Company announced that it had signed two Production Sharing Contracts (PSCs) with the Republic of\u00a0Equatorial Guinea\u00a0for offshore Blocks EG-18 and EG-31, which were subsequently ratified on\u00a0March 1, 2023. The Company holds an 80% operated interest, subject to back in rights by GEPetrol in both blocks. Work programs on both blocks include re-processing of existing 3D seismic surveys and identification of prospects within the first 2-year period. The initial period provides a low-cost opportunity in two highly prospective blocks.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Highlights Africa Oil President and CEO\u00a0Keith Hill\u00a0commented: &#8220;The Venus appraisal program is progressing per our expectation with a second rig, DeepSea Mira, expected to arrive in\u00a0Namibia\u00a0shortly to join the campaign. &hellip; <a href=\"https:\/\/www.oilnewskenya.com\/index.php\/africa-oil-announces-q1-2023-results\/\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":13693,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[7447,7442,7445,7444],"tags":[70,8186,11046,11247,789,792,1675,8118,5021,9822],"class_list":["post-13692","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-central-africa","category-countries","category-southern-africa","category-west-africa","tag-africa-oil","tag-akpo","tag-deepsea-mira","tag-egina-oil-field","tag-equatorial-guinea","tag-equitorial-guinea","tag-namibia","tag-oml-130","tag-rig","tag-venus-1x","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/05\/Africa-Oil.png?fit=526%2C528&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-3yQ","jetpack-related-posts":[{"id":9000,"url":"https:\/\/www.oilnewskenya.com\/index.php\/nigeria-africa-oil-receives-fourth-dividend-from-its-nigerian-asset\/","url_meta":{"origin":13692,"position":0},"title":"NIGERIA: Africa Oil Receives Fourth Dividend From Its Nigerian Asset","author":"","date":"August 31, 2020","format":false,"excerpt":"Africa Oil\u00a0 has announced that it has received its fourth dividend from Prime Oil and Gas B.V., a company that holds interests in deepwater Nigeria production and development assets. Prime says it has distributed a US$50 million dividend with a net payment to Africa Oil of US$25 million related to\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/08\/Africa-Oil-nigeria-assets.png?fit=1115%2C452&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/08\/Africa-Oil-nigeria-assets.png?fit=1115%2C452&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/08\/Africa-Oil-nigeria-assets.png?fit=1115%2C452&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/08\/Africa-Oil-nigeria-assets.png?fit=1115%2C452&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/08\/Africa-Oil-nigeria-assets.png?fit=1115%2C452&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":9331,"url":"https:\/\/www.oilnewskenya.com\/index.php\/africa-oil-receives-fifth-dividend-from-its-nigerian-asset\/","url_meta":{"origin":13692,"position":1},"title":"Africa Oil Receives Fifth Dividend From Its Nigerian Asset","author":"","date":"October 26, 2020","format":false,"excerpt":"Africa Oil has announced that it has received its fifth dividend from Prime Oil and Gas B.V. , a company that holds interests in deepwater Nigeria production and development assets. Prime has distributed a\u00a0US$50 million\u00a0dividend with a net payment to Africa Oil of\u00a0US$25 million\u00a0related to its 50% interest. The Company\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/10\/Africa-Oil-nigeria-assets.png?fit=1115%2C452&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/10\/Africa-Oil-nigeria-assets.png?fit=1115%2C452&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/10\/Africa-Oil-nigeria-assets.png?fit=1115%2C452&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/10\/Africa-Oil-nigeria-assets.png?fit=1115%2C452&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/10\/Africa-Oil-nigeria-assets.png?fit=1115%2C452&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":13158,"url":"https:\/\/www.oilnewskenya.com\/index.php\/africa-oil-provides-its-full-year-2022-production-results\/","url_meta":{"origin":13692,"position":2},"title":"Africa Oil Provides its Full-year 2022 Production Results","author":"","date":"January 18, 2023","format":false,"excerpt":"Full-year 2022 production rates are in line with the mid-point of 2022 Management Guidance range. Prime recorded an average daily working interest production of approximately 23,500 barrels of oil equivalent per day (boepd and net entitlement production of 25,600 boepd, in each case net to Africa Oil's 50% shareholding. These\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/03\/Africa-Oil-S.A-Portfolio.jpg?fit=400%2C275&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":8854,"url":"https:\/\/www.oilnewskenya.com\/index.php\/africa-oil-announces-strong-q2-results-fuelled-by-nigerian-assets\/","url_meta":{"origin":13692,"position":3},"title":"Africa Oil Announces Strong Q2 Results Fuelled by Nigerian Assets","author":"","date":"August 14, 2020","format":false,"excerpt":"Operational Production from Prime Oil & Gas B.V.'s (\"Prime\") Nigerian assets remained strong in the first half of 2020 despite curtailments at Egina in May and June due to OPEC quota limitations. Second quarter average daily Working Interest (\"W.I.\") production2\u00a0was 28,313 barrels of oil equivalent per day (\"boepd\") and economic\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/08\/egina-fpso-small_1_0.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/08\/egina-fpso-small_1_0.jpg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/08\/egina-fpso-small_1_0.jpg?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/08\/egina-fpso-small_1_0.jpg?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/08\/egina-fpso-small_1_0.jpg?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":14813,"url":"https:\/\/www.oilnewskenya.com\/index.php\/africa-oil-announces-the-completion-of-the-transformational-prime-deal\/","url_meta":{"origin":13692,"position":4},"title":"Africa Oil Announces the Completion of the Transformational Prime Deal","author":"","date":"March 24, 2025","format":false,"excerpt":"\u00a0Africa Oil has announced the completion of the amalgamation (the \u201cAmalgamation\u201d) to consolidate all of the Prime Oil & Gas Co\u00f6peratief U.A shareholding in Africa Oil, and declares the first quarterly cash dividend of USD 25 million, as it implements its new enlarged base dividend policy, with a target annual\u2026","rel":"","context":"In &quot;West Africa&quot;","block_context":{"text":"West Africa","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/west-africa\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/03\/Africa-Oil-S.A-Portfolio.jpg?fit=400%2C275&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":14014,"url":"https:\/\/www.oilnewskenya.com\/index.php\/namibia-sintana-energy-reports-rig-enroute-ahead-of-in-first-well-to-spud-in-mid-november\/","url_meta":{"origin":13692,"position":5},"title":"NAMIBIA: Sintana Energy Reports Rig Enroute Ahead of  in First Well to Spud in Mid-November","author":"","date":"October 24, 2023","format":false,"excerpt":"PEL 83 Update In May, Galp entered into a contract with SFL Corporation for the semi-submersible rig Hercules. The 115-day contract, prior to any extension option exercise, is for two wells plus optional well testing. The rig is currently in transit along the coast of West Africa and is expected\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/10\/Namibia-83-87-90.png?fit=532%2C588&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/10\/Namibia-83-87-90.png?fit=532%2C588&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/10\/Namibia-83-87-90.png?fit=532%2C588&ssl=1&resize=525%2C300 1.5x"},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/13692","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/comments?post=13692"}],"version-history":[{"count":3,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/13692\/revisions"}],"predecessor-version":[{"id":13696,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/13692\/revisions\/13696"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/13693"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=13692"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=13692"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=13692"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}