Eginas production continues to increase due to the relaxation of its OPEC+ quota restriction, according to Africa Oil
For the month of June, the field's quota increased to 173 thousand barrels of oil per day (kbopd). This compares to Egina's Q1 2021 average daily production of 152 kbpod. The field's July and August quotas have been approved at 181 kbopd and 177 kbopd, respectively.
Additionally, Prime Oil and Gas has distributed a US$75mn dividend with a net payment to Africa Oil of US$37.5mn related to its 50% shareholding.
Africa Oil management expect to refinance the Term Loan at the end of July 2021, from the proceeds of the new corporate loan (Corporate Facility) as announced on 13 May 2021.
Prime is also expected to repay US$136mn of its outstanding reserves based lending (RBL) facility amount by end of this month, reducing the outstanding balance to about US$1,114mn. This takes Prime's total RBL repayment in the last 18 months to US$711mn, representing a 39% debt reduction.
Prime is expected to end the second quarter of 2021 with a cash balance of at least US$240mn after the dividend distribution and RBL repayment.
Keith Hill, Africa Oil's president and CEO, commented, “Africa Oil's outlook for the second half of this year is very promising as we look forward to higher production rates from Egina, the corporate loan refinance that significantly reduces our cost of capital and high impact exploration catalysts offshore Namibia, South Africa and Guyana.”
On 14 January 2020, Africa Oil closed the acquisition of a 50% ownership interest in Prime (previously known as Petrobras Oil and Gas BV). Prime holds a 16% net Working Interest in OML 130, offshore Nigeria, which contains the Egina oil field.
