Africa Oil Corp (TSX:AOI) has revealed full-year 2022 production rates in line with the mid-point of its guidance range as it prepares for a busy year ahead.
In an operational update, the oil and gas company said Prime Oil & Gas Coöperatief UA recorded an average daily working interest production of around 23,500 barrels of oil equivalent per day (boepd) and net entitlement production of 25,600 boepd, in each case net to Africa Oil's 50% shareholding.
These compare with the mid-range of 2022 management guidance figures of 24,000 boepd and 25,000 boepd for working interest and net entitlement production, respectively, the company said.
"I am pleased to report that we have achieved 2022 production rates that are at the mid-range of our management guidance,” Africa Oil president and CEO Keith Hill said. "We are now heading into a busy operational year with the OML130 drilling campaign and the potentially transformational appraisal drilling on the Venus discovery,”
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In the fourth quarter of 2022, the company noted that Prime was allocated three oil liftings with total sales volumes of around 2.9 million barrels or 1.4 million barrels net to Africa Oil. Average fourth quarter 2022 realised oil sales price of $96.8 per barrel, compares to the average Bloomberg Dated Brent price of $90.5 per barrel, a premium of about 7%, it added.
The company said the rig contracted to drill the Egina infill wells is expected to commence operations in February 2023, 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 said it will provide an update on the renewal in due course.
Africa Oil said management also expects the appraisal drilling work on the Venus discovery to commence by end of the first quarter of 2023.
The farm-out process for Block 3B/4B, which is on trend with Venus and Graff oil discoveries in the Orange Basin is advancing with the aim of securing a new partner by the end of the first quarter of 2023, it said.
“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,” Hill concluded.
Africa Oil returned a total of $63.3 million to its shareholders in 2022, including a total annual dividend distribution of $23.8 million and $39.5 million in share buybacks. All shares repurchased in 2022 have been cancelled.
The company is a Canadian oil and gas company with producing and development assets in deepwater Nigeria; development assets in Kenya; and an exploration/appraisal portfolio in Africa and Guyana.
Contact the author at stephen.gunnion@proactiveinvestors.com