Africa Oil reaches new exploration milestone with strategic farm-out partnership in Orange Basin
March 08, 2024 at 11:00 am EST
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Africa Oil Corp (TSX:AOI) Investor Relations Manager Shahin Amini discusses the company's new partnership with TotalEnergies and Qatar Energy for the exploration of Block 3B/4B in the Orange Basin.
Amini told Proactive's Stephen Gunnion the collaboration marks a significant endorsement of the block's exploration potential, leveraging the expertise and resources of these notable energy companies.
The value derived from this deal for Africa Oil is estimated at $46.8 million, including $10 million in staged payments. Africa Oil's stake will reduce to 17% from 26.25%, and the deal includes a cash component subject to achieving specific operational and regulatory milestones, and a carry agreement that could cover up to two exploration wells' costs.
Amini noted that the strategic partnership allows Africa Oil to explore with "other people's money," aligning with their business model of early basin entry, comprehensive geological assessment, and then attracting resourceful partners for exploration financing.
Additionally, Africa Oil, through its investment in Impact Oil and Gas Limited, has exposure to another promising block in Namibia, highlighting the company's significant acreage position off Southern Africa's coast.
The next steps for Block 3B/4B include working with the new partners and operator to plan for a potential exploration well in 2025, with further developments to be coordinated with the operator.
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Proactive North America
Proactive North America
+1 604-688-8158
NA-editorial@proactiveinvestors.com
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Africa Oil Corp. is a Canadian oil and gas company with producing and development assets in deepwater Nigeria and an exploration/appraisal portfolio in west and south of Africa, as well as Guyana. The Company is focused on its Nigerian assets, Namibian Orange Basin opportunity set (Blocks 2913B and 2912), Block 3B/4B in South Africa's Orange Basin, and Equatorial Guinean exploration blocks (EG-18 and EG-31). The Company holds its interests through direct ownership interests in concessions and through its shareholdings in investee companies, including Prime Oil & Gas Cooperatief U.A. (Prime), Impact Oil and Gas Ltd (Impact), Africa Energy Corp (Africa Energy) and Eco (Atlantic) Oil & Gas Ltd. (Eco). Prime is a Nigeria-focused company with interests in OML 127 and OML 130 that account for all of the Company's reserves and production. Eco is an oil and gas exploration company with interests in Guyana, Namibia and South Africa. Impact has interests in Namibia and South Africa.
AFRICA OIL CORP. 
