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AFRICA OIL ANNOUNCES THE RENEWAL OF OML 130 LICENSE
AFRICA OIL ANNOUNCES THE RENEWAL OF OML 130 LICENSE Canada NewsWire VANCOUV...
About this update from Meren Energy Inc.
[{"type":"text","content":"\n \n \n \n AFRICA OIL ANNOUNCES THE RENEWAL OF OML 130 LICENSE\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n \n VANCOUVER, BC\n \n \n ,\n \n \n May 29, 2023\n \n \n /CNW/ - (TSX: AOI) (Nasdaq-Stockholm: AOI)\n \n – Africa Oil Corp.\n \n (\"Africa Oil\", \"AOC\" or the \"Company\") is pleased to note the press release by TotalEnergies announcing the renewal of Oil Mining License (\"OML\") 130 for a period of 20 years. Africa Oil has an effective 8% interest in OML 130 through its 50% shareholding in Prime Oil & Gas Coöperatief U.A. (\"Prime\"). The renewal of OML 130 means that Akpo, Egina and Preowei fields will operate under the terms of the new Petroleum Industry Act (\"PIA\"), being the first assets to effectively benefit from the PIA fiscal terms.\n \n View PDF version.\n \n \n \n This license renewal, a condition precedent to the closing of Prime's debt refinancing, will allow Prime to enhance its debt capacity, reset its tenor to 6 years and materially increase its near-term liquidity capacity. Closing of the refinancing, expected in the next few days, will provide Prime with the scope to distribute dividends to its shareholders, including Africa Oil, during this year.\n \n \n The renewal of OML 130 will also allow the Company to increase the available amount of its standby corporate credit facility to\n \n $200.0 million\n \n from\n \n $100.0 million\n \n currently, significantly increasing its liquidity. This facility, which is currently unutilised, is available to be drawn until\n \n October 20, 2023\n \n .\n \n \n \n Africa Oil President and CEO\n \n Keith Hill\n \n commented\n \n : \"The renewal of OML 130 is very good news for the Company and its shareholders. This license is the core of our Nigerian investment and accounts for most of Prime's production and cashflows. It also includes attractive growth opportunities such as the undeveloped Preowei oil discovery, which we can now take forward towards a final investment decision. Additional opportunities include step-out exploration and appraisal ...