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Africa Oil reaches new exploration milestone with strategic farm-out partnership in Orange Basin

–News Direct–

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.

Contact Details

Proactive North America

Proactive North America

+1 604-688-8158

NA-editorial@proactiveinvestors.com

View source version on newsdirect.com: https://newsdirect.com/news/africa-oil-reaches-new-exploration-milestone-with-strategic-farm-out-partnership-in-orange-basin-914982338

Africa Oil Corp

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COMTEX_448952858/2655/2024-03-08T11:02:11

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