By Proactive Investors UK
Africa Oil signs two production-sharing contracts with the Republic of Equatorial Guinea.
Africa Oil Corp presents oil and gas exploration portfolio to Proactive.
Africa Oil Corp. is a Canadian oil and gas exploration company with interests in exploration licenses in Kenya, Ethiopia and Somalia.
About the company
Africa Oil Corp. is a Canadian oil and gas exploration company with interests in exploration licenses in Kenya, Ethiopia and Somalia.
How it is doing
Africa Oil Corp (TSX:AOI) said it has signed two production-sharing contracts (PSCs) with the Republic of Equatorial Guinea for offshore Blocks EG-18 and EG-31, subject to ratification by the country’s government.
Under the PSCs, Africa Oil will hold 80% operated interests in each block with the balance to be held by GEPetrol, the national oil company of Equatorial Guinea. GEPetrol has the option of acquiring an additional 15% participating interest in each block. Both blocks are covered by 3D seismic data and the total minimum work commitment for both blocks in the initial exploration periods is a combined total of US$7 million, with no drilling commitment.
In a statement, Africa Oil president and CEO Keith Hill commented: “I am pleased to announce our entry into Equatorial Guinea with two highly-prospective offshore blocks. While we continue our primary focus on cash-flowing production assets in order to underpin sustainable shareholder distributions, we still look to add exploration blocks with attractive fiscal terms in advantaged areas where discoveries can be quickly appraised and brought on stream.”
He added: “Block 31 offers the potential for low-risk gas prospects that are in a proven petroleum province with infrastructure and ullage for significant additional volumes of gas. In Block 18 we see a large turbidite fan that is reminiscent of some of our large discoveries in Namibia and South Africa. These blocks offer high-impact value upside for our shareholders at relatively low cost, and we look forward to continued collaboration with the government of Equatorial Guinea to explore and develop its natural resources.”
Africa Oil Corp (TSX:AOI) has revealed full-year 2022 production rates in line with the mid-point of its guidance range as it prepares for a busy year ahead.
In an operational update, the oil and gas company said Prime Oil & Gas Coöperatief UA recorded an average daily working interest production of around 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.
Africa Oil Corp (TSX:AOI) has provided an update on its appeal process in relation to Kenya Revenue Authority’s (KRA) corporate income tax (CIT) and value-added tax (VAT) assessments, made in connection with farm-out transactions completed during the period of 2012 to 2017.
On April 8, 2020, Africa Oil announced that Kenya Tax Appeals Tribunal (TAT) had ruled on the company’s appeal related to KRA’s CIT and VAT assessments, made in connection with farmout transactions completed during the period of 2012 to 2017.
What management says
Africa Oil Corp (TSX-V:AOI)’s investor relations manager Shahin Amini joined Proactive in the London studio to present its portfolio of projects to investors.
The firm is a Canadian oil and gas exploration company with interests in exploration licenses in Kenya, Ethiopia and Somalia.
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