Africa Oil announces Q3 2018 financial and operating results

Africa Oil Corp. (“Africa Oil” or the “Company”) is pleased to announce its financial and operating results for the three and nine months ended September 30, 2018View PDF version

HIGHLIGHTS:

  • The Company ended Q3 2018 with cash of $380.1 million and working capital of $371.5 million;
  • Cash increased by $10.6 million during Q3 2018, primarily due to receiving the third $18.75 million quarterly advance development carry payment from Total. The fourth and final $18.75 million advance carry payment is expected in Q4 2018;
  • Operational activity continues to be focused in the South Lokichar basin (Blocks 10BB and 13T – Kenya). Work has continued in both the Amosing and Ngamia fields, with water injection testing ongoing at Ngamia-11 and continued oil production from the Ngamia-8 well. The Ngamia-3 well also successfully started production in June 2018. The produced oil from testing has been stored in the field. A comprehensive review of results from this program commenced in the third quarter of 2018. To date, the results are positive;
  • The upstream and pipeline Front End Engineering and Design (FEED) work associated with the South Lokichar development project is progressing to plan and is expected to be completed in the first quarter of 2019. Environmental and Social Impact Assessments are also on schedule for submission to the regulators in the second quarter of 2019;
  • The transfer of stored crude oil from Turkana to Mombasa by road continues, with four trucks continuing to be dispatched every two days, transporting approximately 600 bopd. To date, approximately 30,000 barrels of oil has been transported to Mombasa. The volume of oil transported by truck is expected to increase to 2,000 bopd once the Early Oil Production System is fully operational and production testing commences from the Amosing production facility. The first lifting of sweet Kenyan crude oil stored in Mombasa is expected in the second quarter of 2019;
  • The Kenya Joint Venture Partners (Blocks 10BB and 13T) continue to negotiate key commercial Heads of Terms (“HOT’s”) with the Government of Kenya, related to agreements expected to establish the commercial structure associated with field development;
  • Subsequent to the end of the quarter the Company announced it had entered into a share purchase agreement to acquire an effective 12.5% ownership interest in a company who holds interests in multiple producing and developing fields offshore Nigeria(please refer to press release dated 31st October 2018).

Africa Oil Corp. has a 25% working interest in Blocks 10BB and 13T with Tullow Oil plc (50% and Operator) and TOTAL S.A. (25%) holding the remaining interests.

Source: Africa Oil Corp.

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