Africa Oil Corp Second Quarter 2021 Earnings

Financial and Operating results for the three months ended June 30, 2021, and to provide selected results for Prime Oil and Gas Cooperatief UA (“Prime”), a company in which Africa Oil has a 50% equity interest. View PDF version.


  • Net income of $38.4 million (first half 2021 total of $77.3 million) and end of quarter cash balance of $35.1 million.
  • Received a dividend for $37.5 million from Prime during the quarter and a further $37.5 million dividend in July.
  • On August 2, 2021, Africa Oil announced the closing of its corporate debt facility with $160 million committed. The Company utilized $98 million of this new facility to fully repay its BTG term loan (“Term Loan”) with the undrawn balance of $62 million available to Africa Oil until May 2022. This can be utilized for general corporate purposes, subject to customary covenants.
  • At end of July 30, 2021, AOC had an approximate cash balance of $42 million and net debt of $56 million.
  • Selected Prime’s second quarter 2021 results net to Africa Oil’s 50% shareholding*:
    • end of quarter cash position of $292.8 million that includes an amount of $152.5 million, which is 50% of the security deposit received from Equinor in relation to the Agbami field;
    • average daily working interest (“W.I”) production of 28,100 barrels of oil equivalent per day (“boepd) and economic entitlement production of 30,500 boepd (84% light and medium crude oil and 16% conventional natural gas)2,3; and
    • EBITDA4 of $155.1 million (first half 2021 total of $298.2 million) and cash flow from operations of $252.3 million (first half 2021 total of $338.2 million).
  • Post period, in July 2021, the OML 130 Gas Sales and Purchase Agreement was signed by Prime and all other parties, settling historical gas sales from July 2018. This will result in an additional $36 million of sales revenue with a net cash payment of $21 million expected in the third quarter 2021, in each case net to Africa Oil’s 50% shareholding.
  • Field operational performance remains strong and was enhanced by the removal of production limitations on Egina due to OPEC constraints.

Information Source: Africa Oil Corp.  ..–>

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