Africa Oil Corp (AOIFF)

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Africa Oil 2019 First Quarter Financial and Operating Results

VANCOUVER, May 9, 2019 /CNW/ - (AOI–TSX, AOI–Nasdaq-Stockholm) … Africa Oil Corp. ("Africa Oil" or the "Company") is pleased to announce its financial and operating results for the three months ended March 31, 2019.

HIGHLIGHTS:

The Company ended the quarter with cash of $355.2 million and working capital of $321.9 million;

During the first quarter of 2019, the Company completed the acquisition of an additional 19,890,560 shares of Impact Oil and Gas Limited ("Impact") for an aggregate subscription price of $6.3 million. Africa Oil currently owns approximately 30.1% of Impact;

On February 6, 2019, a significant discovery was announced at the Brulpadda-1AX well on Block 11B/12B offshore South Africa. Africa Oil holds an indirect interest in the project as a result of its equity interests in Africa Energy Corp. (34.5% ownership interest) and Impact Oil and Gas Limited (30.1% ownership interest);

Subsequent to the first quarter, the Company announced that it had acquired 4,752,850 common shares of Eco (Atlantic) Oil and Gas Ltd. ("Eco") for total consideration of $5.0 million. The common shares were acquired by Africa Oil on a non-brokered private placement basis and, together with the 29,200,000 common shares of Eco held by the Company prior to the acquisition, increased its ownership interest to approximately 18.8%. Eco plans to participate in a high impact exploration drilling program on its acreage in Guyana commencing later in 2019;

The Joint Venture Partners (Blocks 10BB and 13T – Kenya) continue to negotiate key commercial agreements with the Government of Kenya, expected to establish the commercial structure associated with field development;

Upstream and midstream Front End Engineering and Design ("FEED") studies (Blocks 10BB and 13T – Kenya) are being finalized and the Environmental and Social Impact Assessments ("ESIA") remain on track for submission to the National Environmental Agency at the end of the second quarter;

The transfer of stored crude oil from the South Lokichar basin (Blocks 10BB and 13T – Kenya) to Mombasa by road continues, with trucks continuing to be dispatched, transporting approximately 600 bopd. To date, approximately 88,000 barrels of oil has been transported to Mombasa. The volume of oil transported by truck is expected to increase to 2,000 bopd once the Early Oil Production System is fully operational from the Amosing temporary production facility and Regulatory Authority approval is received. The first lifting of sweet Kenyan crude oil stored in Mombasa is expected in the second half of 2019;

In October 2018, the Company announced it had entered into a share purchase agreement to acquire an effective 12.5% ownership interest in a company who holds interests in multiple producing and developing fields offshore Nigeria (please refer to press release dated 31st October 2018). Completion of the transaction is subject to customary conditions precedent, including Nigerian Government consent;



Africa Oil Corp. has a 25% working interest in Blocks 10BB and 13T with Tullow Oil plc (50% and Operator) and TOTAL S.A. (25%) holding the remaining interests.



Read more at:
https://news.africaoilcorp.com/releases/entry/122760