Africa Oil Corp has announced its financial and operating results for the three months ended March 31, 2021. The Company has also announced that it has achieved one of its primary objectives for 2021 with the signing of a new term loan agreement, to refinance its existing term facility 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.

Highlights

• 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);
  • 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.

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Source: EnergyPedia