Meren Energy Inc (TSX:MER, OTC:AOIFF) earlier this week completed an interview discussing its recent Prime consolidation and future plans.
The company said the Prime transaction was transformational, doubling reserves and production from assets it has tracked for over five years. Meren stated that this has allowed it to increase its annual base dividend to US$100 million, distributed quarterly.
It highlighted that the dividend policy has been stress-tested under various oil price scenarios. The company said production in Nigeria benefits from premium pricing, low lifting costs, and a supportive fiscal regime. Meren noted the headline tax rate for deepwater projects in Nigeria has decreased from 50% to 30%.
The company told investors that it expects cash flows to cover both dividends and exploration spending. Meren plans to advance exploration in the Orange Basin, with the final investment decision on the Venus project targeted for the first half of 2026 and first oil projected in 2029.
It also indicated that the first exploration well in block 3B/4B offshore South Africa is scheduled to be drilled in 2026.
Meren said it remains Africa-focused but is open to opportunities beyond the continent. The company emphasised that any new acquisitions must adhere to strict financial and technical criteria. According to Meren, “any new deal has to be better than buying back our own shares.”