Africa Oil Announces the Completion of the Transformational Prime Deal

 Africa Oil has announced the completion of the amalgamation (the “Amalgamation”) to consolidate all of the Prime Oil & Gas Coöperatief 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 distribution of at least USD 100 million.

Africa Oil President and CEO, Roger Tucker commented: “This is a transformational milestone that marks the next stage of value creation and shareholder returns for Africa Oil as an enlarged company. There is compelling strategic rationale for the consolidation and we believe that the quality and materiality of the assets within our diversified portfolio, our newly combined balance sheet, the strength of the cash flow profile and an attractive double-digit dividend yield all help emphasise a superior investment proposition for investors.

Africa Oil Chairman, Huw Jenkins commented: “On behalf of the Board I congratulate the teams at Africa Oil, Prime and BTG Pactual in closing this deal considerably ahead of the original timeline. The enlarged Africa Oil is uniquely well-positioned to drive long-term value through its existing portfolio of world-class assets as well as by leveraging its strong balance sheet to consider strategically complementary acquisitions in our target markets.The Company has ambitious growth targets and the vision is to continue growing into a leading full-cycle E&P, establishing it as a trusted and prominent industry partner. The management team has done an excellent job of preparing the Company for its next phase of growth and this completion effectively transforms the Company into one of considerably greater scale that is better placed to realise its vision.”

With the completion of the Amalgamation, Africa Oil’s main assets are an 8% W.I. in Petroleum Mining Lease (PML) 52 and Petroleum Prospecting License (PPL) 2003, and a 16% W.I. in PMLs 2, 3 and 4 as well as PPL 261. PML 52 and PPL 2003 are operated by an affiliate of Chevron Corporation with PML 52 covering part of the producing Agbami field. PMLs 2, 3 and 4 and PPL 261 are operated by affiliates of TotalEnergies S.E. and contain the producing Akpo and Egina fields as well as the Preowei and Egina South Discoveries. Africa Oil’s assets are located over 100 km offshore Nigeria.

All three producing fields have high quality reservoirs and produce light to medium sweet crude oil through FPSO facilities. Akpo and Egina also export associated gas which feeds into the Nigerian liquified natural gas plant, whilst Agbami associated gas is mostly reinjected.

Africa Oil’s year-end 2024 pro forma Proved plus Probable (2P) reserves, based on 100% shareholding in Prime, was estimated to be 70.8 million barrels of oil equivalent on the W.I. basis, and 101.6 MMboe on the net entitlement basis with an after-tax 2P NPV(10) of USD 2,128 million.