Africa Oil Corp has announced its operating and interim condensed consolidated financial results for the three and nine months ended September 30, 2023.
Highlights*
- Successfully completed Venus-1X drill stem testing ("DST") program after flowing oil at positive rates, supporting the Venus commercial development case, and as confirmed by the operator's public statements that there will be an oil development on Venus.
- The Tungsten Explorer drilling rig has spudded the Mangetti-1X exploration well in the northern part of Block 2913B with the results expected by early next year.
- AOC participated in a $40.0 million equity placement by Impact after the period end, investing $13.0 million with the proceeds to fund Impact's continuing activities for the remainder of 2023.
- Prime distributed a dividend of $125.0 million, $62.5 million net to the Company's 50% shareholding.
- In Q3 2023 OML 127 was voluntarily converted to operate under the new Petroleum Industry Act from March 1, 2023, and is now subject to 30% Corporate Income Tax regime compared to the previous 50% Petroleum Profit Tax regime.
- OML 130 drilling campaign continues with two water injection wells and one production well on the Egina oil field having been successfully completed and put online.
- Q3 2023 average daily WI production rate of 20,300 boepd was approximately 4% higher than Q2 2023 average of 19,500 boepd.
- Achieved an average realized oil sales price of $84.5/bbl compared to the average Bloomberg Dated Brent price of $81.5/bbl for the offtake dates in July and August.
- Prime's cash position of $118.9 million and debt balance of $375.0 million resulting in a Prime net debt position of $256.1 million, in each case net to the Company's 50% shareholding at September 30, 2023.
- AOC's cash and cash equivalents at September 30, 2023, of $201.5 million.
Africa Oil President and CEO, Roger Tucker commented: 'Third quarter 2023 was a positive period for the Company with notable achievements for our two main assets offshore Namibia and Nigeria. The Venus-1X testing program achieved positive flow rates for the world-class Venus light oil discovery offshore Namibia, and I am encouraged to note the public statements by the operator, TotalEnergies, that there will be a development on the Venus field.
I am pleased to confirm the conversion of OML 127 to Nigeria's new Petroleum Industry Act regime, that reduces the effective tax rate for the Agbami field. Our Nigerian assets continue to perform well and we received a dividend for $62.5 million during the period. We also saw the first quarterly increase in the average daily production since the second quarter 2021, as the Egina infill drilling program offset the field's production decline.
We have a strong balance sheet and liquidity position, high netback production and unique transformational catalysts in our portfolio. We are focused on optimizing our business structure and delivering on our organic growth opportunities. I look forward to updating you in due course as we make progress on several fronts towards delivering the next phase of value creation.'
* Important information: Africa Oil's interest in Prime is accounted for as an investment in joint venture. Refer to Note 1 on page 4 for further details. Please also refer to other notes on page 4 for important information on the material presented.
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Source: Africa Oil
