VANCOUVER, BC, July 11,
2023 /CNW/ - (TSX: AOI) (Nasdaq-Stockholm: AOI) –
Africa Oil Corp. ("Africa Oil", "AOC" or the "Company")
is pleased to announce that it has entered an agreement to increase
its operated working interest ("WI") in Block 3B/4B, located in
the Orange Basin offshore South
Africa and on trend with the Venus, Graff, La Rona and
Jonker oil discoveries, for an additional 6.25% interest. View PDF
version
An independent review of the prospective resources and
probability of geological success of an inventory of exploration
prospects within Block 3B/4B, has reported
total unrisked gross P50 prospective resources of approximately 4
billion barrels of oil equivalent. Probability of success ranges
from 11% to 39% over the 24 prospects identified.
The Company has signed a legally binding Letter of Intent
("LOI") with Azinam Limited ("Azinam"), a wholly owned subsidiary
of Eco (Atlantic) Oil & Gas Ltd. ("Eco"), to acquire the 6.25%
interest for a total cash consideration of USD 10.5 million, to be paid in tranches on the
following milestones:
- USD 2.5 million within 30 days
after the signing of the LOI;
- USD 2.5 million upon the
government's approval for the transfer of the 6.25% to Africa
Oil;
- USD 4.0 million upon the
completion of a farm-out deal to a third party; and
- USD 1.5 million upon spudding of
the first exploration well on the block.
Africa Oil is a major shareholder in Eco with a 15.02%
shareholding. The Company's Directors other than Mr. Keith Hill, who is also a Director of Eco have
reviewed and approved the terms of the LOI.
The Company will hold an operated WI of 26.25% subject to and,
on the receipt of the government's approval for the transfer, with
Azinam holding a 20.00% WI and Ricocure (Proprietary) Limited
holding the remaining 53.75% interest.
The Company and its Block 3B/4B partners are
progressing plans to conduct a two-well campaign on the block and
are in discussions with various potential partners to farm out up
to a 55% gross working interest in the Block. The Company and its
partners have also 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.
About Block 3B/4B
Block 3B/4B covers an area of 17,581 km2 within
the Orange Basin offshore of the Republic of South Africa. This block lies to the southeast
and on trend with number of oil discoveries including Venus and
Graff. An independent review of the block's prospective resources
has been completed by RISC Advisory (UK) Limited ("RISC"), in
accordance with Canadian National Instrument 51-101 – Standards for
Oil and Gas Activities ("NI 51-101"), the Canadian Oil and Gas
Evaluation Handbook ("COGE Handbook") and the Petroleum Resources
Management System 2018 ("PRMS"). The effective date of RISC's
report is March 7, 2023, and can be
found on the Company's website:
https://africaoilcorp.com/operations/project-overview/
RISC has reviewed the prospective resources and probability of
geological success of 24 exploration prospects within Block
3B/4B
in accordance with the PRMS. The report provides an evaluation of
prospective resources from a prospect inventory identified using 3D
seismic data and follows completion of the reprocessing of 2,200
km2 of 3D seismic data and play-opening discoveries in
Namibia including TotalEnergies'
Venus discovery and Shell's Graff, La Rona, and Jonker light oil
discoveries. These discoveries prove the existence of a working
petroleum system for light oil, gas condensate and gas in the
geological play fairway. The proven reservoirs in Graff and Venus
discoveries are similar to Cretaceous reservoirs and geological
plays that would be targeted in Block 3B/4B. Prospects in
Block 3B/4B are identified using 3D seismic data to assess
the presence of seismic attributes including
amplitude-variation-with-offset ("AVO") or direct hydrocarbon
indicators ("DHI's").
About Africa Oil
Africa Oil Corp. is a Canadian oil and gas company with
producing and development assets in deepwater Nigeria 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 person set out above, at 2:00 a.m.
ET on July 11, 2023.
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 production, schedules
and costs of exploratory drilling activity including those offshore
Namibia and on Block 3B/4B offshore
South Africa, receipt of South
African government approvals, farmout of an interest in Block
3B/4B,
uninsured risks, regulatory and fiscal changes, 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.