Africa Oil Corp (AOIFF)

[douginil]

Africa Oil 2019 Second Quarter Financial and Operating Results


VANCOUVER, Aug. 14, 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 and six months ended June 30, 2019.

HIGHLIGHTS:

- The Company ended the quarter with cash of $341.3 million and working capital of $312.4 million;
- The Joint Venture Partners (Blocks 10BB and 13T – Kenya) and the Government of Kenya have concluded negotiations around key fiscal and commercial principles for Project Oil Kenya with agreements between the parties documented in various Heads of Terms which were signed by the Joint Venture Partners and the Government of Kenya in Nairobi on June 25th;
- On August 12, 2019, the Company announced a significant oil discovery on the Orinduik Block, offshore Guyana. Africa Oil holds an approximately 18.8% equity interest in Eco, and Eco holds a 15% working interest in the Orinduik Block;
- During the second quarter of 2019, the Company acquired 4,752,850 common shares of Eco (Atlantic) Oil and Gas Ltd. ("Eco") for total consideration of $5.0 million (Africa Oil currently owns approximately 18.8% of Eco);
- 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);
- Upstream and midstream Front End Engineering and Design ("FEED") studies (Blocks 10BB and 13T – Kenya) have been completed and the Environmental and Social Impact Assessments ("ESIA") remain on track for submission to the National Environmental Agency during the third quarter of 2019;
- Following the receipt of the Regulatory Authority approval the Early Oil Production System ("EOPS") became fully operational at the Amosing temporary production facility in June 2019. EOPS production levels have reached 2000 barrels of oil per day ("bopd") with all the crude oil being trucked from Turkana to Mombasa by road. To date, approximately 230,000 barrels of oil have been transported to Mombasa. 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;
- In July 2019, the Company announced that its wholly-owned subsidiary, Africa Oil SA Corp., had entered into a definitive farmout agreement to acquire a 20% participating interest and operatorship in the Exploration Right for Block 3B/4B, offshore South Africa. Completion of the farmout agreement is subject to standard conditions for a transaction of this type, including approval of the South African government.



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/122765