Africa Oil announce 4th Qtr 2022 results
Africa Oil Corp. announced 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.
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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