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Highlights

  • Africa Oil completes the amalgamation of Prime Oil & Gas, consolidating control over offshore assets
  • A quarterly cash dividend of USD 25 million is declared with a target annual distribution of USD 100 million
  • Board and executive management changes announced, alongside the company’s full-year 2025 guidance

Africa Oil Corp. (TSX:AOI) has completed the amalgamation of Prime Oil & Gas Coöperatief U.A., consolidating all of Prime’s shareholding in Africa Oil. As part of the deal, Africa Oil also declared its first quarterly cash dividend of USD 25 million, marking the implementation of its enlarged base dividend policy. The company has set a target annual distribution of at least USD 100 million.

The completion of the amalgamation significantly enhances Africa Oil’s reserves and production, as the company now fully controls Prime's high-quality offshore assets, which benefit from low lifting costs, premium Brent pricing, and a favorable fiscal regime. This deal brings the company’s cash position to USD 460.9 million as of December 31, 2024, and is expected to increase free cash flows per share, improving its capacity to deliver sustainable returns to shareholders.

The company also announced that, following the transaction, it issued 239,828,655 newly issued common shares to BTG Pactual Oil & Gas S.a.r.l. (“BTG O&G”), which now holds approximately 35.5% of Africa Oil’s outstanding share capital. This strategic alignment is designed to support the company’s growth and provide access to new business opportunities while enhancing disciplined capital allocation.

In addition to the changes in shareholding, Africa Oil revealed updates to its Board and executive management. The company also presented its full-year 2025 Management Guidance, setting the stage for its operational and financial strategy moving forward.