Africa Oil Corp (AOIFF)

[douginil]

Africa Oil Announces its Year-End 2020 Statement of Reserves with a 117% 2P Reserves Replacement Ratio and the Posting of its First ESG Review

VANCOUVER, BC, March 29, 2021 /CNW/ - (TSX: AOI) (Nasdaq Stockholm: AOI) Africa Oil Corp. ("Africa Oil", "AOC" or the "Company") is pleased to announce the posting of its 2020 statement of reserves on SEDAR (www.sedar.com) as part of its Annual Information Form. This disclosure is based on an independent reserves evaluation, effective 31 December 2020, prepared by RISC (UK) Limited ("RISC") for Africa Oil in accordance with Canadian National Instrument 51-101 – Standards for Oil and Gas Activities ("NI 51-101") and the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook"). Africa Oil is also pleased to announce the release of its first Environmental, Social and Governance ("ESG") Review that presents the Company's 2020 ESG performance highlights and sustainability goals. This can be accessed on the Company's website (www.africaoilcorp.com). View PDF Version

Highlights

- Africa Oil's statement of reserves is based on the Company's 50% ownership interest in Prime Oil & Gas Coöperatief U.A ("Prime").
- YE'2020 working interest (W.I.) and net entitlement2 proved plus probable reserves ("2P") of 72.6 MMboe (YE'19: 70.9 MMboe) and 85.8 MMboe (YE'19: 84.9 MMboe), respectively.
- W.I. 2P reserves replacement ratio of 117% is the result of 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.
- After-tax 2P NPV (10) valuation of $1,356 million.
- Africa Oil is committed to be a full-cycle E&P company that integrates sustainability consideration throughout the decision-making and operational management. The Company has presented its vision, sustainability goals and ESG performance metrics in its inaugural ESG Review.

Africa Oil President and CEO, Keith Hill, commented on the statement of reserves: "we recently reported strong full-year 2020 operational and financial performance underpinned by our investment in Prime. Therefore, I am very pleased to report further positive news on our Nigerian assets with a 2P reserves replacement ratio of 117% due to strong reservoir performance at all three producing fields. These low-cost assets provide us with a strong platform of production and cash flows to pursue growth opportunities in our portfolio as well as new business development ventures. I am also pleased that we have published our first ESG Review, a significant milestone for the company, since becoming a full-cycle E&P company in January 2020 through the acquisition of a 50% shareholding in Prime. We are fully committed to delivering on our sustainability goals and I am confident that we will continue to make good progress in managing and improving our ESG performance."

Read more & view tables at:
https://www.africaoilcorp.com/news/africa-oil-announces-its-year-end-2020-statement-o-122801/