VANCOUVER, Aug. 14, 2019 /CNW/ - (AOI–TSX, AOI–Nasdaq-Stockholm) … Africa Oil Corp. ("Africa Oil" or the "Company") is pleased to announce its financial and operating results for the three and six months ended June 30, 2019.
Africa Oil Corp. has a 25% working interest in Blocks 10BB and 13T with Tullow Oil plc (50% and Operator) and TOTAL S.A. (25%) holding the remaining interests.
2019 Second Quarter Financial Results
(Thousands United States Dollars, except Per Share and Share Amounts)
June 30, 2019
December 31, 2018
Cash and cash equivalents
Total equity attributable to common shareholders
ended June 30,
ended June 30,
ended June 30,
ended June 30,
Net loss per share (basic and diluted)
Weighted average number of shares outstanding
(basic and diluted) ('000s)
Number of shares outstanding ('000s)
Cash flows provide by (used in) operations
Cash flows provide by (used in) investing
Cash flows provide by (used in) financing
Total change in cash and cash equivalents
Change in share capital
Change in contributed surplus
Change in deficit
Total change in equity
The financial information in this table was selected from the Company's unaudited consolidated financial statements for the three and six months ended June 30, 2019. The Company's consolidated financial statements, notes to the financial statements, management's discussion and analysis for the three and six months ended June 30, 2019 and 2018, and the 2018 Annual Information Form have been filed on SEDAR (www.sedar.com) and are available on the Company's website (www.africaoilcorp.com).
FINANCIAL POSITION AND EARNINGS
The Company ended the second quarter of 2019 with cash of $341.3 million and working capital of $312.4 million in comparison to cash of $370.3 million and working capital of $340.7 million at the end of 2018. Africa Oil is debt free. Investments in intangible exploration expenditures of $4.8 million and $17.9 million were incurred during the three and six months ended June 30, 2019 respectively ($10.3 million and $21.3 million during the three and six months ended June 30, 2018 respectively). These expenditures relate primarily to the Company's share of appraisal stage projects (Blocks 10BB and 13T – Kenya) and include expenditures related to the following activities: geological and geophysical studies, development studies (including upstream and midstream FEEDs, land acquisition, ESIAs, water acquisition and subsurface reservoir studies) and general and administrative costs incurred in relation the Company's Production Sharing Agreements. An additional $6.3 million investment was made in Impact during the first quarter of 2019 and an additional $5.0 million investment was made in Eco during the second quarter of 2019.
Operating expenses decreased $36.7 million during the second quarter of 2019 compared to the same period in 2018 and $36.4 million during the six months ended June 30, 2019 in comparison to the first half of 2018. The Company recognized a $44.7 million impairment of intangible exploration assets during the three months ended June 30, 2018 relating to the relinquishment of Block 9 in Kenya. The share of loss from equity investments increased $8.3 million during the three months ended June 30, 2019 compared to the same period in 2018. This was driven by a $7.4 million loss recorded during the quarter on the Impact investment, where a provision was made for certain Gabon property impairments. Impact continues to hold a broad portfolio of high impact exploration and appraisal opportunities.
Mr. Bryan Benitz is stepping down from the Board of Directors after 10 years of service. The Company is grateful for Mr. Benitz's service and contribution to the Board. He has been an excellent advisor to the Board and will act as a consultant to the Company for the balance of the year.
The Company is pleased to announce the appointment of Erin Johnston to the Board of Directors. Ms. Johnston serves as Managing Director of Lundin Foundation, a Canadian not-for profit organization that develops market-based programs to maximize benefits to communities surrounding resource operations. In her role as Managing Director, she advises on Environmental and Social Governance (ESG) issues to reduce non-technical risks of resource development projects, and engages with stakeholders on ESG issues, including host governments and local communities.
Ms. Johnston brings over 15 years of experience in the private sector leading capacity building and resource governance projects in Latin America, Asia and Africa. She was the former Director of Training Investment responsible for British Columbia's annual investment in education and skills training. She has a Masters of Arts in International Leadership from Simon Fraser University and an Executive Leadership Certificate from the UBC Sauder School of Business.
About Africa oil
Africa Oil Corp. is a Canadian oil and gas company with assets in Kenya and has signed an agreement to acquire an interest in a producing asset in deepwater Nigeria. The Company is listed on the Toronto Stock Exchange and on Nasdaq Stockholm under the symbol "AOI".
This information is information that Africa Oil Corp. is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Market Act. This information was submitted for publication, through the agency of the contact person set out below on August 14, 2019 at 2:30 p.m. Pacific Time.
FORWARD LOOKING INFORMATION
Certain statements made and information contained herein constitute "forward-looking information" (within the meaning of applicable Canadian securities legislation). Such statements and information (together, "forward looking statements") relate to future events or the Company's future performance, business prospects or opportunities. Forward-looking statements include, but are not limited to, statements with respect to estimates of reserves and or resources, future production levels, future capital expenditures and their allocation to exploration and development activities, future drilling and other exploration and development activities, ultimate recovery of reserves or resources and dates by which certain areas will be explored, developed or reach expected operating capacity, that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management.
All statements other than statements of historical fact may be forward-looking statements. Statements concerning proven and probable reserves and resource estimates may also be deemed to constitute forward-looking statements and reflect conclusions that are based on certain assumptions that the reserves and resources can be economically exploited. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "seek", "anticipate", "plan", "continue", "estimate", "expect, "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions) are not statements of historical fact and may be "forward-looking statements". Forward-looking statements involve known and unknown risks, ongoing uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements, including the drilling on the Jethro-Lobe prospect and anticipated drilling on the Joe prospect, anticipated date, results and costs of the lifting of the sweet Kenyan crude oil stored in Mombasa; estimated production levels at the Amosing temporary production facility; the completion of the Company's Environmental and Social Impact Assessments and submission of same to the National Environmental Agency; the Company's negotiations with its Joint Venture Partners and the Government of Kenya, and the completion of the Company's transaction(s) in Nigeria. The Company believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. The Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws. These forward-looking statements involve risks and uncertainties relating to, among other things, changes in oil prices, results of exploration and development activities, uninsured risks, regulatory changes, defects in title, availability of materials and equipment, timeliness of government or other regulatory approvals, actual performance of facilities, availability of financing on reasonable terms, availability of third party service providers, equipment and processes relative to specifications and expectations and unanticipated environmental impacts on operations. Actual results may differ materially from those expressed or implied by such forward-looking statements.
ON BEHALF OF THE BOARD
"Keith C. Hill"
President and CEO
SOURCE Africa Oil Corp.