Africa Oil Targets Earnings From Nigeria’s OML 127, OML 130

Africa Oil Corp(AOC) is projecting multiple attractive development, appraisal and infrastructure-led exploration opportunities on both OML 127 and OML 130, which it said, presents low-risk, short-cycle investment opportunities that have very attractive rates of returns.

The projections is coming as the Canadian firm operating in Nigeria’s deep water space announces the posting of its 2022 statement of reserves on SEDAR, as part of its Annual Information Form.

This disclosure is based on an independent reserves evaluation, effective 31 December 2022, prepared by RISC (UK) Limited (“RISC”) for Africa Oil in accordance with Canadian National Instrument 51-101 – Standards for Oil and Gas Activities and the Canadian Oil and Gas Evaluation Handbook.

Africa Oil’s statement of reserves is based on the Company’s 50 per cent ownership interest in Prime Oil & Gas Coöperatief U.A.

Africa Oil chief executive officer(CEO), Keith Hill, commented on the statement of reserves: “since acquiring our 50 per cent shareholding in Prime in January 2020 we have received $650.0 million in dividends from Prime compared to a closing cash consideration of $519.5 million, and we still have a material reserves base that will generate robust production and cash flows for many years to come.

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“One of the larger assets in Nigeria, the Egina field, had a 2P reserves reduction due to changing well performance and a revised understanding of reservoir complexity, based on the information obtained from the 2022 4D seismic provided by the operator.

“However, we are looking forward to the results of this year’s Egina infill drilling program and the upcoming 2023 4D monitoring survey to help underpin future drilling campaigns and optimize reserves volumes within OML130.

There are also multiple attractive development, appraisal and infrastructure-led exploration opportunities on both OML 127 and OML 130, presenting us with low-risk, short-cycle investment opportunities that have very attractive rates of returns.”

Africa Oil’s statement of reserves is based on the Company’s 50 per cent ownership interest in Prime Oil & Gas Coöperatief U.A (“Prime”). Prime’s main assets are an indirect 8 per cent interest in Oil Mining Lease (“OML”) 127 and an indirect 16 per cent interest in OML 130; both are deep-water Nigeria concessions.

OML 127 is operated by the affiliates of Chevron Corporation and contains the producing Agbami field while OML 130 is operated by affiliates of TotalEnergies SE and contains the producing Akpo and Egina fields and the undeveloped Preowei field.