News Release Issued: May 23, 2023 (1:30am EDT)
AFRICA OIL ANNOUNCES THE DECISION TO WITHDRAW FROM ITS KENYA PROJECT
VANCOUVER, BC, May 23, 2023 /CNW/ - (TSX: AOI) (Nasdaq-Stockholm: AOI) – Africa Oil Corp. ("Africa Oil", "AOC" or the "Company") announces that it has submitted withdrawal notices to its joint venture partners on Blocks 10BB, 13T and 10BA in Kenya, to unconditionally and irrevocably, withdraw from the entirety of the joint operating agreements ("JOAs") and Production Sharing Contracts ("PSCs") for these concessions. The Company has concurrently submitted notices to Ministry of Energy and Petroleum, requesting the government's consent to transfer all of its rights and obligations under the PSCs to its remaining joint venture partner.
The carrying value of the Kenya intangible exploration assets was written down to $58.6 million at December 31, 2022, and the Company intends to further impair this value to zero.
Africa Oil President and CEO Keith Hill commented: "We have taken the decision to exit our Kenya concessions as our strategy has shifted to focus on production and high potential exploration opportunities, including our Orange Basin portfolio where we are now appraising the exciting Venus discovery, offshore Namibia.
Africa Oil is proud to have played a central role in discovering the oil fields in Kenya's South Lokichar Basin. We continue to believe these discoveries will form the basis of a significant oil producing province in the coming years with strategic value for the country. We have also had the privilege of working with our host communities on our social-focused programs and we are grateful to them for welcoming us to their midst. We thank the government of Kenya, our host communities and our joint venture partners for their support over the years and we wish them the best in taking the project forward to the next stage."
