Africa Oil Corp (TSX:AOI) has completed the consolidation of its Prime Oil & Gas Coöperatief UA shareholding, a move the company says will enhance shareholder returns and strengthen its financial position.
The Canadian oil and gas firm now owns 100% of Prime, having acquired BTG Pactual’s remaining 50% stake.
To mark the shift, Africa Oil declared a quarterly dividend of $25 million, establishing a new base dividend policy targeting at least $100 million in annual distributions.
CEO Roger Tucker called consolidation a “transformational milestone that marks the next stage of value creation and shareholder returns for Africa Oil.”
“The quality of our assets, our combined balance sheet, and a strong cash flow profile emphasize a superior investment proposition,” Tucker said in a statement.
Production capacity doubles
With the consolidation, Africa Oil’s reserves and production capacity have doubled.
The company’s working interest production now stands at 28,000 to 33,000 barrels of oil equivalent per day, with expectations to generate between $500 million and $600 million in EBITDAX in 2025.
The company also cited stronger free cash flow potential and a robust balance sheet, factors that it said would support further shareholder distributions and strategic investments.
Larger, more diversified company
The company has restructured its board, adding representatives from Africa Oil and former Prime partner BTG Pactual. Keith Hill, Erin Johnston, Andrew Bartlett, and Gary Guidry are stepping down. Tucker, John Craig, Michael Ebsary, and Kimberley Wood remain on the board, while Huw Jenkins joins as non-executive chair alongside new directors Pascal Nicodeme, Edwyn Neves, Ahonsi Unuigbe, and Richard Norris.
Additionally, Aldo Perracini has been appointed chief financial officer, replacing Nicodeme.
“This completion transforms the company into one of considerably greater scale,” said chairman Huw Jenkins.
As part of its new direction, Africa Oil plans to rebrand in May.
“We are excited to enter this next phase as a larger, more diversified company,” Tucker added.
The company continues to evaluate opportunities to optimize its portfolio and expand its presence in high-potential energy markets.