Africa Oil Release First Quarter 2021 Financial Results

Africa Oil Corp. announced its financial and operating results for the three months ended March 31, 2021.

The Company also announced that it has achieved one of its primary objectives for 2021 with the signing of a new term loan agreement (“Corporate Facility”), to refinance its existing term facility (“Term Loan”) that is due to mature in January 2022. This achieves significant reduction in borrowing costs, strengthens the balance sheet and improves the Company’s liquidity position.


  • First quarter net income of $38.9 million and end of quarter cash balance of $29.4 million.
    Selected Prime’s first quarter 2021 results net to Africa Oil’s 50% shareholding*:
    average daily working interest (“W.I”) production of 27,700 barrels of oil equivalent per day (“boepd) and economic entitlement production of 30,300 boepd (84% light and medium crude oil and 16% conventional natural gas)2,3;
    EBITDA of $143.1 million4 and cash flow from operations of $85.9 million for the quarter; and end of quarter cash position of $165.3 million.
  • Africa Oil published its 2020 year-end reserves report (NI 51-101) confirming working interest 2P reserves replacement ratio of 117%. Strong reservoir performances with positive technical revisions and resource transfers of 12.2 MMboe, compared to a production of 10.5 MMboe net to Africa Oil’s 50% shareholding in Prime, reiterating the quality of AOC’s producing assets.
  • The Corporate Facility is for an amount of up to $150 million, out of which $130 million is committed at signing, with an uncommitted accordion option for an additional $20 million and has a three-year term.
    Interest is payable at a rate of LIBOR plus a margin of 6.5% in the first year increasing to 7.0% in the second year and 7.5% in the third year.
  • Subject to the satisfaction of customary conditions precedent, the Corporate Facility will be available by end of July 2021 and the proceeds will be used to repay the Term Loan and for general corporate purposes.

Africa Oil President and CEO Keith Hill commented: “I am delighted with the strong support from our banking syndicate, a clear endorsement of our investment case and high-quality assets. As well as the immediate benefits of lower borrowing costs and improved liquidity, this refinancing strengthens our banking relationships, a strategic advantage as we seek to acquire additional producing assets in this attractive market and progress our South Lokichar project in Kenya. We also look forward to the results from our high impact Venus and Gazania exploration wells as we progress Brulpadda and Luiperd discoveries towards development.”

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