Africa Oil has announced its full-year 2022 production results and provided an operational update
The company's production is attributed to its 50% shareholding in Prime Oil & Gas Coöperatief UA.
Full-year 2022 production rates(1,2,3) are in line with the mid-point of 2022 Management Guidance range. Prime recorded an average daily working interest production of approximately 23,500 boepd and net entitlement production of 25,600 boepd, in each case net to Africa Oil's 50% shareholding. These compare with mid-range of 2022 Management Guidance figures of 24,000 boepd and 25,000 boepd for working interest and net entitlement production, respectively.
In fourth quarter 2022, Prime was allocated three oil liftings with total sales volume of approximately 2.9 mn barrels or 1.4 mn barrels net to Africa Oil. Average fourth quarter 2022 realised oil sales price of US$96.8 per barrel, compares to the average Bloomberg Dated Brent price of US$90.5 per barrel, a premium of about 7%.
The rig contracted to drill the Egina infill wells is expected to commence operations in February, after obtaining its final regulatory approval.
Prime and its partners made good progress on the OML130 license renewal process in late 2022 and the company will provide an update on the renewal in due course.
Africa Oil management expect the appraisal drilling work on the Venus discovery to commence by end of first quarter 2023.
Farm-out process for Block 3B/4B that is on trend with Venus and Graff oil discoveries in the Orange Basin, is advancing with the aim of securing a new partner by end of first quarter 2023.
Africa Oil returned a total of US$63.3mn to its shareholders in 2022, including a total annual dividend distribution of US$23.8mn and US$39.5mn in share buybacks. All shares repurchased in 2022 have been cancelled.
Africa Oil President and CEO Keith Hill commented, "I am pleased to report that we have achieved 2022 production rates that are at the mid-range of our management guidance. We are now heading into a busy operational year with the OML130 drilling campaign and the potentially transformational appraisal drilling on the Venus discovery. We have an exciting period ahead of us and we can look forward to the upcoming catalysts, whilst taking comfort in the strength of our debt-free balance sheet and robust production and cash flows from our Nigerian assets."
