Presentation

Africa Oil is an Africa-focused E&P company listed on the Toronto and Stockholm stock exchanges with a market cap of USD ~475m. Its portfolio consists of producing assets offshore Nigeria, the South Lokichar basin development project in Kenya, and equity holdings in the exploration companies Impact Oil & Gas (~31% stake), Eco (Atlantic) Oil & Gas (~18%) and Africa Energy (~31%) with licenses across Africa and Guyana.

Africa Oil’s main asset is its 50% ownership in Prime Oil & Gas in Nigeria. Prime holds working interests in the large offshore producing oil fields Agbami, Akpo and Egina. Africa Oil acquired this holding in a transformational deal which closed in early 2020. Net to Africa Oil’s 50% ownership, Prime is guiding on WI production of 24,000-28,000 boe/day in 2021 and cash flow from operations of USD 310-440m. The operating cash flow will go towards RBL debt amortizations, as well as dividends to Africa Oil.

Africa Oil’s South Lokichar development project (25% WI) is located in the northeast of Kenya. The first oil discovery in the area was made in 2012 and since then several have been made, most notably Ngamia and Amosing. The 2C resources are estimated to 560 million barrels gross by Tullow Oil (operator). In 2018 the partners outlined a development plan for the fields and the project is close to ready for FID.

The past years, Africa Oil has delivered on its strategy of diversifying its portfolio and has acquired both exploration and producing assets, whilst it proceeds with the South Lokichar development project. On the exploration side, two potential triggers stand out for 2021. Impact Oil & Gas will participate in the Venus-1 exploration well offshore Namibia which is expected to spud in Q3 2021, and Africa Energy will participate in the Gazania-1 exploration well offshore South Africa, with a target spud date in 2021/22.