Africa Oil Corp. says the farm-down deal involving Impact Oil & Gas and TotalEnergies for PELs 91 and 56 in the Orange Basin increased shareholder capital returns with US$25.4 million during Q1 2024 and $37.5 from the start of the year to May 10, 2024.
African Oil Corp holds a 31.1% interest in Impact Oil & Gas, which has a 20% working interest in PEL 56 on Block 2913B and 18.9% in PEL 91 on Block 2912.
Impact Oil & Gas retains a 9.5% working interest in the two blocks after the transactions with TotalEnergies.
According to Africa Oil Corp’s 2024 first quarter results, the farm down transactions, the company had a cash balance of $195.5 million and no debt.
Africa Oil Corp’s CEO Roger Tucker said the first quarter of 2024 was significant, with two strategic farm-down transactions in the highly sought-after Orange Basin.
Tucker said Africa Oil Corp would retain a significant upside through these transactions, including exposure to the world-class Venus development project, at no upfront cost.
He added that with the funding assured for the core Orange Basin assets, Africa Oil Corp could continue with its shareholder capital return program, including the restart of share repurchases and the distribution of the first semi-annual dividend for 2024.
“Africa Oil is in a solid position to work its core asset opportunity set. We can now look forward to progress on the Venus project, our first Orange Basin discovery, towards a final investment decision and first production.
“This asset is expected to add significant reserves and production to our portfolio from the late 2020s through the 2030s and beyond,” Tucker said.
Africa Oil Corp wants to advance its foremost opportunity set, which is comprised of its core assets in deepwater Nigeria, Orange Basin offshore Namibia, South Africa, and Equatorial Guinea.
Management will also evaluate the options for consolidating the ownership of its core assets and streamlining the company’s business structure.
