Africa Oil Receives Prime Oil and Gas Dividend

Africa Oil Corp. announced that it has received its seventh dividend from Prime Oil and Gas Cooperatief UA (“Prime”). The Company is also pleased to update the markets on a significant increase in the Egina oil field production.

Prime has distributed a $75.0 million dividend with a net payment to Africa Oil of $37.5 million related to its 50% shareholding. The Company intends to apply $18 million from the latest dividend to reduce the outstanding balance of the BTG term loan (“Term Loan”) to $123 million.

Africa Oil management expect to refinance the Term Loan at the end of July 2021, from the proceeds of the new corporate loan (“Corporate Facility”) as announced on May 13, 2021. The utilisation of Corporate Facility is subject to the satisfaction of customary conditions precedents and the Company is on track to complete these prior to the end of July.

Prime is also expected to repay $136 million of its outstanding reserves based lending (“RBL”) facility amount by end of this month, reducing the outstanding balance to about $1,114 million. This takes Prime’s total RBL repayment in the last 18 months to $711 million, representing a 39% debt reduction. Prime is expected to end the second quarter of 2021 with a cash balance of at least $240 million after the dividend distribution and RBL repayment.

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