Africa Oil announce its operating and consolidated financial results for the three months and the year ended December 31, 2021

The Company also announced the introduction of a regular shareholder dividend policy as part of its commitment to returning excess capital to its shareholders. and its 2022 Management Guidance


  • Record full-year net income of $190.7 million or $0.40 per share.
  • Cash balance at December 31, 2021 of $58.9 million. Our corporate facility has been fully repaid and $100m of the facility remains available for general corporate purposes until December 2022.
  • The Company will institute a shareholder dividend policy with an initial 2022 aggregate annual distribution of $0.05 per share (approximately $25 million) to be paid semi-annually, with the first payment payable on March 31, 2022, to shareholders of record at the close of business on March 17, 2022.
  • Venus 1-X exploration well results in a major light oil discovery on Block 2913B (the Company has a 6.2% indirect interest through its shareholding in Impact Oil & Gas Limited), offshore Namibia, that together with the nearby Graff-1 discovery on the adjacent Block 2913A (the Company has no interest in this block), herald the opening of a major petroleum province with significant upside potential for the Company.
  • Positive year-end 2021 statement of reserves with working interest (W.I.) proved plus probable reserves (“2P”) replacement ratio of 102% (year-end 2020: 114%).
  • Selected Prime’s results net to Africa Oil’s 50% shareholding*:
    • full-year W.I. production of 27,300 boepd and economic entitlement production of 29,700 boepd (84% light and medium crude oil and 16% conventional natural gas) are at the top end of 2021 Management Guidance2,3; and
    • In Q4 2021, EBITDAX of $163.4 million (full-year period: $654.5 million)4.
    • In Q4 2021, cash generated from operating activities of $60.6 million (full-year period: $526.7 million, includes $152.5 million of Agbami Security Deposit received).
    • Cash position of $258.9 million and debt balance of $508.4 million at December 31, 2021; Robust Net Debt to EBITDAX of 0.4x in 2021.
  • 2022 Management Guidance (refer to page 3 for more details):
    • Average daily W.I. production range of 22,500-25,500 boepd and net entitlement production range of 23,000-27,000 boepd net to the Company’s 50% shareholding in Prime, with approximately 84% expected to be light and medium crude oil and 16% conventional natural gas; and
    • Prime’s cash flow from operating activities of $300-$400 million net to the Company’s 50% shareholding in Prime.
  • Inaugural ESG Review published in March 2021, followed by a comprehensive Sustainability Report, including TCFD compliant scenario analysis, published today, 28th February 2022.
  • In 2021, the Company set a target to achieve carbon neutrality by 2025. Towards this goal, the Company purchased an initial tranche of offsets covering >20% of Scope 1 and 2 emissions from a Gold Standard certified clean cookstove project in Kenya, and began feasibility studies for direct investment in a proprietary nature-based carbon removal project.

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