VANCOUVER, BC, Nov. 1, 2024
/CNW/ - (TSX: AOI) (Nasdaq-Stockholm: AOI) – Africa Oil
Corp. ("Africa Oil", "AOC" or the "Company") is pleased to
announce that its investee company Impact Oil & Gas Limited
("Impact") has completed the farm down ("Farm Down") of its
interests in Blocks 2912 and 2913B
offshore Namibia ("Blocks") to
TotalEnergies EP Namibia B.V. Impact has also received a cash
payment of approximately USD 99
million, as reimbursement for its share of costs incurred on
the Blocks net to the Farm Down interests, prior to January 1, 2024 ("Effective Date"). View PDF
version
Impact has retained a 9.5% interest in each of the Blocks and
will benefit from a carry loan for all its remaining development,
appraisal and exploration costs on the Blocks from the Effective
Date, until the date on which Impact receives the first sales
proceeds from oil production on the Blocks ("First Oil Date"). The
carry loan is repayable from a share of Impact's after-tax cash
flows, and net of all joint venture costs, including capital
expenditures, from production on the Blocks.
Africa Oil President and CEO, Roger
Tucker commented: "The Farm Down allows Africa Oil to
retain a funded interest in the Venus development project that is
expected to add significant reserves and production to our
portfolio. We also believe there is tremendous exploration upside
on the Blocks starting with the recently spud Tamboti-1X well.
The Farm Down completion also satisfies a condition precedent to
the amalgamation to effect the consolidation of all of Prime Oil
& Gas Coöperatief U.A. in Africa Oil. We expect to close the
amalgamation during the first quarter of 2025 which will then allow
us, subject to customary Board approvals, to implement the enlarged
shareholder returns program, as previously communicated in our
Prime consolidation press release of June
24, 2024".
Africa Oil currently has a shareholding of approximately 32.4%
in Impact. On the closing of the call and put option agreement with
three Impact shareholders that was announced on August 27, 2024, the Company will increase its
shareholding in Impact to approximately 39.5%, which represents an
effective economic interest of approximately 3.8% in the
Blocks.
Namibia Operational Update
Following the 2022 Venus-1X discovery well, four further
exploration and appraisal wells have been drilled on the Blocks to
date. Of the five wells drilled, four have, successfully penetrated
and tested the Venus field. As a result, planning is
currently progressing for the first development area, with a
development scheme expected to be finalized by the end of 2025.
During 2024, two additional 3D seismic acquisition programs were
completed to facilitate further exploration over the southern and
northern parts of the combined blocks. This has resulted in most of
the licensed area now being covered by 3D seismic. This data is
currently being processed and interpreted and will help further
evaluate prospects and leads in the far northern and southern parts
of the Blocks.
On October 20, 2024, the DeepSea
Mira spud the Tamboti-1X well, targeting significant additional
resource in the north of Block 2913B.
Beyond Tambotti-1X, there are a number of prospects in the southern
part of the Blocks that are currently being matured by the recent
3D seismic data and create an opportunity for follow-on potential
high impact exploration wells.
Block 2913B (PEL 56) and the
Venus Discovery
Petroleum Exploration License 56, Block 2913B, is located offshore southern Namibia and covers approximately 8,215 km² in
water depths between 2,450m and
3,250m. Following the completion of
the Farm Down, Impact now holds a 9.5% interest in this Block.
TotalEnergies, the operator, holds a 50.5% interest, QatarEnergy
holds a 30.0% interest and NAMCOR, the Namibian state oil company,
holds a 10.0% interest.
Block 2913B contains the world
class Venus light oil and associated gas field that was discovered
by the Venus-1X well drilled in 2022, which encountered
high-quality light oil-bearing sandstone reservoir of Lower
Cretaceous age. The field has been appraised with the testing of
the Venus-1X side-track well plus three additional appraisal wells
that have also been flow tested. These wells are: Venus-1A;
Venus-2A; and Mangetti-1X.
Block 2912 (PEL 91)
Petroleum Exploration License 91, Block 2912 is adjacent and to
the west of Block 2913B. It covers an
area of approximately 7,884 km2 in water depths between
3,000m and 3,950m. Following the completion of the Farm Down
Impact now holds a 9.5% interest in this Block. TotalEnergies, the
operator, holds a 47.2% interest, QatarEnergy holds a 28.3%
interest and NAMCOR holds a 15.0% interest.
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. 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. The
information was submitted for publication, through the agency of
the contact persons set out above, at 3:15
pm EDT on November 1,
2024.
Forward Looking Information
Certain statements and information contained herein constitute
"forward-looking information" (within the meaning of applicable
Canadian securities legislation), including statements related to
drilling operations on the Blocks, potential exploration and
appraisal upside on the Blocks, the development of the Venus field,
first oil production from the Blocks, completion of the
Amalgamation during first quarter 2025, implementing the enlarged
shareholder returns program and the closing of the closing of
call-put option agreement entered into by the Company increasing
its shareholding in Impact to approximately 39.5%, which is based
on Impact's current issued capital on a fully-diluted basis. 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. 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. 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, 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.
