Africa Oil Corp has announced its financial and operating results for the three and nine months ended September 30, 2024.
Highlights
- Satisfied the material conditions precedent to the amalgamation to effect the consolidation of all of Prime in Africa Oil.
- The completion of the amalgamation is now expected during Q1 2025 compared to the previous guidance of Q3 2025, accelerating the timeline to implementing the enlarged shareholder returns program subject to customary Board approvals, as previously communicated on June 24, 2024.
- Closed the farm down for Block 3B/4B, facilitating the exploration drilling on this prospective Orange Basin block that is anticipated during 2025. Africa Oil currently holds a direct 17.0% interest.
- During Q3 2024 Africa Oil increased its shareholding in Impact to 32.4% and on November 5, 2024, served the notice to exercise the call option to acquire additional shares that on completion, will increase its shareholding to approximately 39.5%, enhancing its rights and influence over a core strategic asset and value driver for the Company.
- Distributed the second 2024 semi-annual dividend distribution of $0.025 per share.
- The Company ended Q3 2024 with a cash balance of $136.1 million and no debt.
- Selected Prime’s highlights and results net to Africa Oil’s 50% shareholding*:
- Recorded Q3 2024 average daily WI production of approximately 17,900 barrels of oil equivalent per day (“boepd”), which is approximately 13% higher than Q2 2024.
- Recorded Q3 2024 average daily net entitlement production of approximately 20,600 boepd, which is approximately 13% higher than Q2 2024.
- Recorded Q3 2024 and first nine months of 2024 cashflow from operations of $68.2 million and $214.9 million, respectively, resulting in an increase to the lower end of the full-year 2024 guidance to $260.0 million.
- Cash position of $210.3 million and debt balance of $375.0 million resulting in a Prime net debt position of $164.7 million at September 30, 2024. The AOC Net Debt inclusive of 50% Prime Net Debt is $28.6 million, which is approximately 22% lower than end of Q2 2024.
Africa Oil President and CEO, Roger Tucker commented: 'We have made excellent progress towards closing the transaction to consolidate all of Prime in Africa Oil. We are significantly ahead of the original timeline, and we now expect the closing to be achieved during the first quarter of 2025. This brings forward the implementation of the enhanced shareholder capital returns program including an enlarged base dividend policy as previously communicated, subject to customary Board approvals.'
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Source: Africa Oil
