Africa Oil Provides Production & Operational Update

Source: 1/18/2023, Location: Africa

Africa Oil Corp. ("Africa Oil", "AOC" or the "Company") is pleased to announce its full-year 2022 production results and to provide an operational update. The Company's production is attributed to its fifty per cent shareholding in Prime Oil & Gas Coöperatief U.A. ("Prime").

Full-year 2022 production rates1,2,3 are in line with the mid-point of 2022 Management Guidance range. Prime recorded an average daily working interest production of approximately 23,500 barrels of oil equivalent per day ("boepd") and net entitlement production of 25,600 boepd, in each case net to Africa Oil's 50% shareholding. These compare with mid-range of 2022 Management Guidance figures of 24,000 boepd and 25,000 boepd for working interest and net entitlement production, respectively.

In fourth quarter 2022, Prime was allocated three oil liftings with total sales volume of approximately 2.9 million barrels or 1.4 million barrels net to Africa Oil. Average fourth quarter 2022 realised oil sales price of $96.8 per barrel, compares to the average Bloomberg Dated Brent price of $90.5 per barrel, a premium of about 7%.

The rig contracted to drill the Egina infill wells is expected to commence operations in February 2023, after obtaining its final regulatory approval.

Prime and its partners made good progress on the OML130 license renewal process in late 2022 and the Company will provide an update on the renewal in due course.

Africa Oil management expect the appraisal drilling work on the Venus discovery to commence by end of first quarter 2023.

Farm-out process for Block 3B/4B that is on trend with Venus and Graff oil discoveries in the Orange Basin, is advancing with the aim of securing a new partner by end of first quarter 2023.

Africa Oil returned a total of $63.3 million to its shareholders in 2022 including a total annual dividend distribution of $23.8 million and $39.5 million in share buybacks. All shares repurchased in 2022 have been cancelled.

Africa Oil President and CEO Keith Hill commented: "I am pleased to report that we have achieved 2022 production rates that are at the mid-range of our management guidance. We are now heading into a busy operational year with the OML130 drilling campaign and the potentially transformational appraisal drilling on the Venus discovery. We have an exciting period ahead of us and we can look forward to the upcoming catalysts, whilst taking comfort in the strength of our debt-free balance sheet and robust production and cash flows from our Nigerian assets."

- Full-year 2022 results are preliminary reported numbers and may be subject to minor adjustments. Final numbers will be provided with the Company's fourth quarter results.
- Net entitlement production is calculated using the economic interest methodology and includes cost recovery oil, tax oil and profit oil and is different from working interest production that is calculated based on project volumes multiplied by Prime's effective working interest in each license.
- The production comprised of 82% light and medium gravity crude oil and 18% conventional natural gas.

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