Africa Oil Corp (TSX:AOI) has maintained its 2023 management guidance as it released its financial results for the three months ended March 31, 2023, in which it also highlighted exciting exploration opportunities in Equatorial Guinea and the Orange Basin.
In the results statement, Africa Oil's president and CEO, Keith Hill spotlighted the progress of the Venus appraisal program and the company's increased shareholding in Impact Oil and Gas Ltd.
The Venus appraisal campaign, which aims to explore the Venus oil discovery and investigate a potential westerly extension, is progressing as expected, he added. Hill noted that a second rig, DeepSea Mira, will soon join the campaign in Namibia.
Africa Oil's increased shareholding in Impact, as a result of an open offer, provides shareholders with exposure to one of the most exciting appraisal and exploration programs globally in 2023, Hill added.
He also noted the high-quality production assets in Nigeria through the company's shareholding in Prime. These assets, combined with the exploration opportunities, contributed to the company's robust performance in the first quarter of 2023.
In terms of financials, Africa Oil reported a net income of $21.9 million in Q1 2023, lower than the previous year. However, the company's cash position remained strong with $158.2 million in cash and cash equivalents as of March 31, 2023.
Africa Oil also declared and paid a semi-annual dividend and repurchased shares, returning over $80.0 million to shareholders since March 2022.
Looking ahead, the company said it is focused on strategic acquisitions and maintaining a strong balance sheet to navigate various market scenarios.
Africa Oil has production and development assets in Nigeria, development assets in Kenya, and an exploration and appraisal portfolio in various regions of Africa and Guyana.
Contact the author at jon.hopkins@proactiveinvestors.com