Africa Oil Corp has provided an update on Prime Oil & Gas Reserve Base Lending facility (‘RBL’). Africa Oil has a 50% shareholding in Prime, a company with deepwater producing assets offshore Nigeria.
The September redetermination of the Prime RBL has been approved by the banking syndicate with a total principal amortisation for 2020 of US$522 million. This is US$108 million less than management’s initial guidance of US$630 million as announced on February 25th, 2020.
As a result of this outcome and Prime’s large cash surplus, Prime with the support of its shareholders has elected to repay and cancel US$297 million of the RBL principal on September 30th, 2020, which will satisfy the scheduled repayments for the third and fourth quarters of 2020. The early settlement of the fourth quarter repayment will result in US$2 million of savings in interests and fees during the next three months. Prime is not expected to make any further principal repayment until the results of the next RBL redetermination scheduled to be finished on 31st March 2021. The outstanding RBL principal amount now stands at US$1,303 million.
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