VANCOUVER, BC, Feb. 27,
2023 /CNW/ - (TSX: AOI) (Nasdaq-Stockholm: AOI) –
Africa Oil Corp. ("Africa Oil", "AOC" or the "Company")
is pleased to announce its operating and consolidated financial
results for the three months and the year ended December 31, 2022, together with its 2023
Management Guidance. The Company is also pleased to provide a
drilling update on its offshore interests in Namibia and Nigeria. View PDF version.
Highlights
- Announced in February 2022 that
Venus 1-X well made a major light oil discovery, offshore
Namibia. The Company has a 6.2%
indirect interest through its shareholding in Impact Oil & Gas
Limited and is the only publicly listed independent E&P company
with an interest in Venus.
- Multi-well program in Namibia
due to commence imminently, targeting up to four wells, to appraise
the Venus discovery and to investigate a potential westerly
extension of Venus on Block 2912.
- Multi-well infill drilling program on the Egina oil field,
offshore Nigeria, has
commenced.
- The Company received five dividends1 totaling
$250.0 million in 2022 from its
shareholding in Prime, including one dividend of $37.5 million in Q4 2022.
- Cash balance at December 31, 2022
of $199.7 million (end 2021:
$58.9 million).
- During 2022 the Company returned $63.3
million to its shareholders through the share buyback
program and the dividend policy.
- Africa Oil will maintain its primary focus on its Nigerian and
Namibian Orange Basin assets and continues to work on optimizing
and unlocking shareholder value in its other assets.
- Selected Prime's results net to Africa Oil's 50%
shareholding*:
-
- For 2022, Prime recorded an average daily working interest
production of about 23,500 barrels of oil equivalent per day
("boepd") and net entitlement production of 25,600 boepd, almost
in-line with mid-range of 2022 Management
Guidance3,4;
- In Q4 2022 and 2022, EBITDAX5 of $140.7 million and $600.5
million respectively (Q4 2021 and 2021: $163.4 million and $654.5
million respectively);
- Cash position of $165.9 million
and debt balance of $391.2 million at
December 31, 2022; Robust Net Debt to
EBITDAX for the twelve months ended December
31, 2022, of 0.4x (twelve months ended December 31, 2021: 0.4x); and
- Combined with AOC cash and no debt, results in a 2022 net debt
position of $25.6 million (end 2021:
$190.6 million net debt).
Africa Oil President and CEO Keith
Hill commented: "2022 was a very positive year for
Africa Oil with two notable achievements. The Venus oil discovery,
offshore Namibia, has opened up a
world-class petroleum basin. We are at the forefront of this
exciting play through our interest in Venus and its possible
westerly extension, as the only publicly listed Independent E&P
company presenting investors with exposure to its potentially
transformational upside; as well as through our twenty percent
operated interest in Block 3B/4B that is on
trend with Venus, and our indirect interest in the Orange Basin
Deep block. The second notable milestone was the introduction of
our base dividend policy and our first share buyback program. I am
proud that on the back of a strong debt-free balance sheet and
robust cash flows from Nigeria, we
delivered on our promises and returned $63.3
million to our shareholders during 2022. We now have a busy
and exciting period ahead of us and we can look forward to the
upcoming transformational catalysts with three offshore rigs
actively drilling on our assets."
__________________________________
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* Important
information: Africa Oil's interest in Prime is accounted for as an
investment in joint venture. Refer to Note 2 on page 6 for further
details. Please also refer to other notes on page 6 for important
information on the material presented.
|
2022 Fourth Quarter Financial Results
(Millions United States Dollars, except Per Share and Share
Amounts)
|
|
|
|
|
|
|
December 31,
2022
|
December 31,
2021
|
|
|
|
Cash and cash
equivalents
|
199.7
|
58.9
|
|
|
|
Total assets
|
917.7
|
991.6
|
|
|
|
Short-term
debt
|
-
|
-
|
|
|
|
Long-term
debt
|
-
|
-
|
|
|
|
Total
liabilities
|
87.1
|
43.6
|
|
|
|
Total equity
attributable to common
shareholders
|
830.6
|
948.0
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
Three months
ended
|
Year
ended
|
Year
ended
|
|
|
December 31,
2022
|
December 31,
2021
|
December 31,
2022
|
December 31,
2021
|
|
Share of profit from
investment in
joint venture
|
2.9
|
56.1
|
146.6
|
224.4
|
|
Share of (loss) /
profit from
investment in associates
|
(8.0)
|
5.7
|
(8.2)
|
2.5
|
|
Total operating (loss)
/ income
|
(5.1)
|
61.8
|
138.4
|
226.9
|
|
Net operating (loss) /
income
|
(182.6)
|
56.9
|
(59.2)
|
208.9
|
|
Net (loss) /
income
|
(182.2)
|
54.9
|
(60.3)
|
190.7
|
|
Net (loss) / income per
share - basic
|
(0.39)
|
0.12
|
(0.13)
|
0.40
|
|
Net (loss) / income per
share – diluted
|
(0.39)
|
0.12
|
(0.13)
|
0.40
|
|
Weighted average number
of share
outstanding - basic ('000s)
|
475,074
|
474,192
|
474,367
|
473,332
|
|
Weighted average number
of share
outstanding - diluted ('000s)
|
475,074
|
479,611
|
474,367
|
477,361
|
|
Number of shares
outstanding ('000s)
|
462,791
|
474,655
|
462,791
|
474,655
|
|
|
|
|
|
|
|
Cash flows used in
operations
|
(2.5)
|
(2.8)
|
(16.3)
|
(10.8)
|
|
Cash flows provided by
investing
|
29.7
|
47.3
|
220.2
|
187.7
|
|
Cash flows used in
financing
|
(34.7)
|
(24.5)
|
(63.2)
|
(158.5)
|
|
Total change in cash
and cash equivalents
|
(7.6)
|
20.0
|
140.8
|
18.4
|
|
|
|
|
|
|
|
Total change in
equity
|
(216.3)
|
55.7
|
(117.4)
|
193.8
|
|
The financial
information in this table was selected from the Company's audited
consolidated financial statements for the year ended December 31,
2022. The Company's consolidated financial statements, notes to the
financial statements, management's discussion and analysis for the
year ended December 31, 2022 and 2021 have been filed on SEDAR
(www.sedar.com) and are available on the Company's website
(www.africaoilcorp.com).
|
FINANCIAL POSITION AND EARNINGS
The operating income and loss primarily relates to the Company's
share of profit from its investments in Prime amounting to
$2.9 million for Q4 2022 and
$146.6 million for 2022. These
compare to share of profit from Prime during Q4 2021 of
$56.1 million and during 2021 of
$224.4 million.
The Company recognized a net loss of $(182.2) million for Q4 2022 and a net loss of
$(60.3) million for 2022, mostly due
to non-cash impairments recognized by the Company and Prime during
Q4 2022.
Africa Oil recognized a non-cash impairment to its Kenyan
intangible exploration assets of $170.6
million (2021: nil) due to continuing delays and
uncertainties to the farm out process and the path to the final
investment decision ("FID") for Project Oil Kenya.
The share of profit from the 50% investment in Prime for Q4 2022
was impacted by a non-cash impairment of $41.2 million net to AOC, recognized by Prime but
partly offset by a deferred tax release of $20.6 million net to AOC. This resulted from the
delay in the infill drilling program in OML 130 due to the late
arrival of the rig and a reduction in the expected ultimate
recovery of the Egina field following the incorporation of the
results of the 4D seismic acquired in late 2021 and processed
during 2022. Excluding these impairments, Africa Oil's adjusted net
income for 2022 is $151.5 million or
$0.32 per share.
The Company ended Q4 2022 with cash of $199.7 million and a zero debt balance in
comparison to cash of $58.9 million
and a zero debt balance at the end of 2021. During the Q4 2022,
Prime paid one dividend for $75.0
million with net payment to Africa Oil of $37.5 million, related to its 50% shareholding
interest. The Company received five dividends from Prime during
2022 for a total amount of $250.0
million net to Africa Oil. Since the acquisition of a 50%
shareholding in Prime in January 2020
for $519.5 million, the Company has
received 15 dividends from Prime for a total amount of $650.0 million net to Africa Oil.
On October 20, 2022, the Company
agreed amendments with its lending group, which will become
effective on the renewal of OML 130 license. The undrawn standby
corporate facility amount will be increased from $100.0 million to $200.0
million and can be drawn until October 20, 2023. The maturity date has been
extended to October 20, 2025, from
May 13, 2024.
PRIME'S Q4 2022 AND FULL-YEAR 2022 PERFORMANCE
Prime's Q4 2022 average daily W.I. production was 21,300 boepd
and economic entitlement production was 23,500 boepd (81% light and
medium crude oil and 19% conventional natural gas), net to Africa
Oil's 50% shareholding in Prime. Its full-year 2022 average working
interest production was 23,500 boepd and economic entitlement
production was 25,600 boepd (82% light and medium crude oil and 18%
conventional natural gas), net to Africa Oil's 50% shareholding in
Prime. These compare with mid-range of 2022 Management Guidance
figures of 24,000 boepd and 25,000 boepd for W.I. and net
entitlement production, respectively.
In Q4 2022, Prime was allocated three oil liftings with total
sales volume of approximately 2.9 million barrels or 1.4 million
barrels net to Africa Oil. For 2022, Prime was allocated 15 oil
cargoes with total sales volume of approximately 14.9 million
barrels or 7.5 million barrels net to Africa Oil's 50%
shareholding.
Prime achieved an average realized oil price of $96.0/bbl in Q4 2022 and an average realized oil
price of $84.5/bbl for 2022, in each
case including hedging and quality differentials. Average Q4 2022
realised oil sales compares to the average Bloomberg Dated Brent
price of $88.3/bbl for the quarter.
Average 2022 realised oil sales price compares to the Bloomberg
Date Brent average of $99.9/bbl.
Prime realized higher sales prices during second half of 2022
compared to the first half of the year, under its new oil marketing
strategy. Please refer to page 14 in the Q4 2022 MD&A for more
details.
In Q4 2022 and 2022, Prime recorded revenues of $146.0 million and $723.2
million respectively (Q4 2021 and 2021: $153.9 million and $610.2
million respectively). Revenue has increased in 2022 due to
higher realized oil price compared to 2021.
Prime recorded EBITDAX of $140.7
million and $600.5 million in
Q4 2022 and 2022 respectively (Q4 2021 and 2021: $163.4 million and $654.5
million respectively). In Q4 2022 and 2022, Prime also
recorded cash generated from operating activities before working
capital of $58.5 million and
$250.5 million respectively (Q4 2021
and 2021 - $74.4 million and
$536.2 million respectively). 2022
has decreased primarily from additional tax payments of
$148.5 million and in 2021 a net
$152.5 million was received by Prime
relating to the Agbami Securitization Agreement deposit.
Prime's 2022 capital expenditure of $28.4
million (net to the Company's 50% shareholding) is about 48%
lower than the 2022 Management Guidance midpoint of $55.0 million. The reduction is mostly due to the
delay in the OML 130 drilling campaign, which has now
commenced.
2023 MANAGEMENT GUIDANCE
The Company's 2023 production will be contributed solely by its
50% shareholding in Prime. The 2023 Management Guidance includes
W.I. production guidance range of 18,500-21,500 boepd and net
entitlement production range of 20,500-23,500 boepd with
approximately 82% expected to be light and medium crude oil and 18%
conventional natural gas.
Net entitlement production estimate is based on a 2023 Brent
price of $80.9/bbl being the average
of the Brent forward curves between November
15, 2022, and January 15,
2023. Net entitlement production is calculated using the
economic interest methodology and includes cost recovery oil, tax
oil and profit oil and is different from W.I. production that is
calculated based on project volumes multiplied by Prime's effective
W.I.
Prime is expected to sell three cargoes during Q1 2023. The
first cargo of the year was sold at spot with the second and third
cargoes sold with an average fixed Dated Brent price of
$76.1/bbl. Prime has 6 cargoes,
scheduled between April and September
2023 with an average trigger price of $70.0/bbl. None of these triggers have been
reached.
Based on the above production and cargo lifting ranges and
Prime's current 2023 forward sales program, the Company's
management estimate Prime to generate cash flow from operations of
approximately $250.0-$330.0 million net to the Company's 50%
shareholding, before working capital adjustments.
Any dividends received by the Company from Prime's operating
cash flows and cash on hand will be subject to Prime's capital
investment and financing cashflows, including Prime's RBL and PXF
interest payments and principal amortization. Net to the Company's
50% shareholding, Prime's 2023 capital investment is expected to be
in the range of $80.0-$100.0.
Prime, net to AOC's 50%
shareholding:
|
2023
Guidance
|
2022 Actuals
|
WI production
(boepd)
|
18,500-21,500
|
23,500
|
Economic entitlement
production (boepd)
|
20,500-23,500
|
25,600
|
Cash flow from
operations before working capital (million)
|
$250.0-$330.0
|
$250.5
|
Expenditure on oil and
gas properties (million)
|
$80.0-$100.0
|
$28.4
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2023 OUTLOOK
Management believe that the most impactful catalysts for the
Company in 2023 are the Venus appraisal drilling results from Block
2913B and follow-on exploration on
Block 2912, both located offshore Namibia. A multi-well program in Namibia is expected to commence imminently,
targeting up to four wells (including the re-entry and side-track
of the Venus-1X discovery well, in Block 2913B), to appraise the Venus discovery and to
investigate a potential westerly extension of Venus, the Nara
prospect (previously referred to as West Venus) on Block 2912. AOC
has an interest in this program through its 30.9% shareholding in
Impact.
Appraisal of Venus Discovery in Block 2913B (PEL 56)
Drilling of Venus-1A, the first appraisal well on the Venus
discovery, located approximately 13km to the north of the Venus-1X
discovery well, is expected to spud imminently, using the Tungsten
Explorer drillship. The Deepsea Mira semi-submersible drilling rig
will then be used to conduct a drill stem test at this location.
The Deepsea Mira will then re-enter the Venus-1X well and conduct a
flow test. The objective of this program is to further evaluate
reservoir and deliver dynamic data.
Impact holds a 20% W.I. in PEL 56, which is operated by
TotalEnergies who holds a 40% W.I. QatarEnergy and NAMCOR
respectively hold a 30% and 10% W.I. in PEL 56. The Company's
effective interest is 6.2%.
Exploration and Potential Appraisal of Block 2912 (PEL
91)
Block 2912 may contain a highly material extension of the Venus
field. Operations by TotalEnergies during 2023, on behalf of the
JV, are designed to drill an exploration well and, if successful,
test this potential extension of the Venus accumulation into Block
2912 and provide an understanding of the structure and reservoir
quality.
TotalEnergies is expected to commence drilling operations in
Block 2912 during mid-2023. Exploration well Nara-1X will be
drilled and flow tested by the Tungsten Explorer and, if
successful, an appraisal well, Nara-1A, will then be drilled and
flow tested.
Impact holds an 18.89% WI in PEL 91, which is also operated by
TotalEnergies who holds a 37.78% WI. QatarEnergy and NAMCOR
respectively hold 28.33% and 15% WI in PEL 91. The Company's
effective interest is 5.8%.
Nigeria
OML 130 drilling campaign for 2023 has commenced with the spud
of the first well on the Egina oil field. This is the first in a
multi-well program that is planned for 2023 and it is the first
major work program since AOC acquired a 50% shareholding in Prime.
This is aimed at arresting the production decline.
Prime and its upstream partners are currently working on the
early conversion to the new Petroleum Industry Act ("PIA") terms of
OML 127 license. It is expected that the early renewal of OML 130 ,
which accounts for most of the reserves, production and value in
Prime's portfolio can be delivered this year. It is further
expected that a successful early renewal of OML 130 could provide
the basis for concurrent refinancing of Prime's RBL and PXF debt,
that in turn could support Prime increasing cash available for
distributions to its shareholders or re-investments in the near
term.
Early renewal of OML 130 could also facilitate the final
investment decision for the Preowei oil discovery development
project. Preowei oil field is to the north of Egina FPSO and is a
low-risk development opportunity through a satellite subsea
tie-back project to the Egina FPSO.
Block 3B/4B, South
Africa
The Company has a 20% operated interest in Block 3B/4B offshore
South Africa. This block is on
trend with Venus and Graff oil discoveries (the Company has no
interest in Graff) in the Orange Basin. The application to extend
the Block 3B/4B license and to move into the first extension
period of 2 years was approved on October
27, 2022.
The Company and its JV partners are progressing plans to conduct
a two-well campaign on Block 3B/4B 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 process in
preparation for permitting and drilling activity on the Block.
Equatorial Guinea
The Company announced on February 20,
2023, that it has signed two production sharing contracts
("PSCs") with the Republic of Equatorial
Guinea for offshore Blocks EG-18 and EG-31. These PSCs are
subject to ratification by the country's government. Africa Oil
will hold eighty per cent (80%) operated interests in each block
with the balance to be held by GEPetrol, the national oil company
of Equatorial Guinea. GEPetrol has
the option of acquiring an additional fifteen percent (15%)
participating interest in each block. Both blocks are covered by 3D
seismic data and the total minimum work commitment for both blocks
in the initial exploration periods is a combined total of
USD 7 million, with no drilling
commitment.
In Block EG-31 the Company has identified several gas-prone
prospects in shallow water depths of less than 80 meters and close
to existing infrastructure, including the offshore Alba gas field
and the onshore Punta Europa Liquefied Natural Gas ("LNG")
Terminal.
In Block EG-18 the Company has identified a potentially large
and highly prospective basin floor fan prospect of Cretaceous age,
that is similar to those within the Company's exploration portfolio
in Namibia and South Africa.
The Company will be focused on maturing the identified
exploration targets with the aim of attracting strategic partners
ahead of exploration drilling in the next few years.
Kenya
In 2021, the Company and its partners initiated a farmout
process for Project Oil Kenya. A successful farmout is viewed by
the Company as a critical step towards the FID for Project Oil
Kenya being achieved and is viewed as a condition to FID.
Discussions with the interested parties have taken longer than
expected and there is no guarantee that the Company can
successfully conclude a farmout to new strategic partner(s) on
favorable terms. As a result of this delay the Company has
recognized an impairment to its carrying value for Project Oil
Kenya.
Dividends
The Company is pleased to announce that its Board of Directors
has declared the distribution of the Company's semi-annual cash
dividend of $0.025 per common share.
The dividend will be payable on March 31,
2023, to shareholders of record at the close of business on
March 13, 2023. This dividend
qualifies as an 'eligible dividend' for Canadian income tax
purposes.
Dividends for shares traded on the Toronto Stock Exchange
("TSX") will be paid in Canadian dollars on March 31, 2023,however, all US and foreign
shareholders will receive USD funds. Dividends for shares traded on
Nasdaq Stockholm will be paid in Swedish kronor in accordance with
Euroclear principles on April 4,
2023. To execute the payment of the dividend, a temporary
administrative cross-border transfer closure will be applied by
Euroclear from March 9, 2023, up to
and including March 13, 2023, during
which period shares of the Company cannot be transferred between
the TSX and Nasdaq Stockholm. Payment to shareholders who are not
residents of Canada will be net of
any Canadian withholding taxes that may be applicable. For further
details, please visit
https://africaoilcorp.com/investors/dividend-information/.
The Company's Annual General Meeting is planned to be held on
April 20, 2023.
2022 Annual Filings
The Company's 2022 Annual Filings Document, MD&A, Annual
Information Form and Financial Statements are available for
download from the Company's website:
https://www.africaoilcorp.com/investors/meeting-materials-corporate-filings/.
NOTES
- Prime does not pay dividends to its shareholders, including
Africa Oil, on a fixed pre-determined schedule. Previous number of
dividends and their amounts should not be taken as a guide for
future dividends to be received by Africa Oil. Any dividends
received by Africa Oil from Prime's operating cash flows will be
subject to Prime's capital investment and financing cashflows,
including payments of Prime's Reserve Based Lending ("RBL")
principal amortization, which are subject to semi-annual RBL
redeterminations.
- The 50% shareholding in Prime is accounted for using the equity
method and presented as an investment in joint venture in the
Consolidated Balance Sheet. Africa Oil's 50% share of Prime's net
profit or loss will be shown in the Consolidated Statements of Net
Income/Loss and Comprehensive Income/Loss. Any dividends received
by Africa Oil from Prime are recorded as Cash flow from Investing
Activities. The guidance presented here is for information
only.
- Aggregate oil equivalent production data comprised of light and
medium crude oil and conventional natural gas production net to
Prime's W.I. in Agbami, Akpo and Egina fields. These production
rates only include sold gas volumes and not those volumes used for
fuel, reinjected or flared.
- Net entitlement production is calculated using the economic
interest methodology and includes cost recovery oil, tax oil and
profit oil and is different from working interest production that
is calculated based on project volumes multiplied by Prime's
effective working interest in each license.
- Earnings Before Interest, Tax, Impairment, Depreciation,
Amortization and Exploration Expenses ("EBITDAX") is not a
generally accepted accounting measure under International Financial
Reporting Standards ("IFRS") and does not have any standardized
meaning prescribed by IFRS and, therefore, may not be comparable
with definitions of EBITDAX that may be used by other public
companies. This is used by management as a performance measure to
understand the financial performance from Prime's business
operations without including the effects of the capital structure,
tax rates, DD&A, impairment and exploration
expenses. Non-IFRS measures should not be considered in
isolation or as a substitute for measures prepared in accordance
with IFRS. A reconciliation from total profit (a GAAP measure) to
EBITDAX (a non-GAAP measure) can be found on page 14 of the
MD&A.
- All dollar amounts are in United
States dollars unless otherwise indicated.
Management Conference Call
Senior management will hold a conference call to discuss the
results on Tuesday, February 28, 2023
at 09:00 (ET) / 14:00 (GMT) /15:00 (CET). Participants should use
the following link to register for the live webcast:
https://onlinexperiences.com/Launch/QReg/ShowUUID=F1BAFF1F-6862-4C78-9281-D20467A0B44F
Participants can also join via telephone with the instructions
available on the following link:
https://register.vevent.com/register/BI6b5af2d6ec854982851dad879ccef82c
Please join the event conference 5-10 minutes prior to the start
time. A recording of the webcast will be available on the Company's
website after the event.
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 west and south of Africa, as
well as Guyana. The Company is
listed on the Toronto Stock Exchange and on Nasdaq Stockholm under
the symbol "AOI".
Additional Information
This information is information that Africa Oil is obliged to
make public pursuant to the EU Market Abuse Regulation and the
Swedish Financial Instruments Trading Act. The information was
submitted for publication, through the agency of the contact
persons set out above, at 10:00 p.m.
EDT on February 27, 2023.
Advisory Regarding Oil and Gas Information
The terms boe (barrel of oil equivalent) is used throughout this
press release. Such terms may be misleading, particularly if used
in isolation. Production data are based on a conversion ratio of
six thousand cubic feet per barrel (6 Mcf: 1bbl). This conversion
ratio is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value
equivalency at the wellhead. Given that the value ratio based on
the current price of crude oil as compared to natural gas is
significantly different from the energy equivalency of 6:1,
utilizing a conversion on a 6:1 basis may be misleading as an
indication of value. Petroleum references in this press release are
to light and medium gravity crude oil and conventional natural
gas.
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 the 2023 Management
Guidance including production, cashflow from operation and capital
investment estimates, performance of commodity hedges, the results,
schedules and costs of exploratory drilling activity including
those offshore Namibia and
Nigeria, uninsured risks,
regulatory and fiscal changes, outlook for the renewal of OML 130
license in Nigeria, availability
of materials and equipment, unanticipated environmental impacts on
operations, duration of the drilling program, availability of third
party service providers and defects in title. 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, reservoir and production facility performance,
hedging counterparty contractual performance, results of
exploration and development activities, cost overruns, uninsured
risks, regulatory and fiscal changes including uncertainties around
applicable corporate income tax in Nigeria, 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.