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Africa Oil Reiterates 2020 and 2021 Oil Price Hedges and Its 2020 Management Guidance
Africa Oil Reiterates 2020 and 2021 Oil Price Hedges and Its 2020 Management Guidance ...
About this update from Meren Energy Inc.
[{"type":"text","content":"\n\n\n\nAfrica Oil Reiterates 2020 and 2021 Oil Price Hedges and Its 2020 Management Guidance\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.prngen3{\nBORDER-TOP:black 0pt; BORDER-RIGHT:black 0pt; BORDER-BOTTOM:black 0pt; PADDING-LEFT:0.50em; BORDER-LEFT:black 0pt; PADDING-RIGHT:0.50em\n}\n.prngen2{\nBORDER-TOP:black 0pt; BORDER-RIGHT:black 0pt; VERTICAL-ALIGN: TOP; BORDER-BOTTOM:black 0pt; PADDING-LEFT:0.50em; BORDER-LEFT:black 0pt; PADDING-RIGHT:0.50em\n}\n.prnbcc{\nBORDER-TOP:0pt solid; BORDER-RIGHT:0pt solid; BORDER-COLLAPSE: COLLAPSE; BORDER-BOTTOM:0pt solid; BORDER-LEFT:0pt solid\n}\n\n\n\n\n\n\n\nCanada NewsWire\nVANCOUVER, March 16, 2020\n\n\n\nVANCOUVER, March 16, 2020 /CNW/ - (AOI–TSX, AOI–Nasdaq-Stockholm) – Africa Oil Corp. (\"Africa Oil\" or the \"Company\") wishes to reiterate the oil price hedges arranged by its investee company, Prime Oil & Gas B.V. (\"Prime\"). These will significantly mitigate the impact of recent drop in global oil prices on the cash flows from operating activities net to Africa Oil's 50% shareholding in Prime, that were recently announced as part of the Company's 2020 Management Guidance. View PDF version.\nPrime's hedging program has resulted in 95% of its 2020 production to have been hedged at an average price of US$66.0 per barrel, and 28% of its 2021 production to have been hedged at an average price of US$.60.0 per barrel. The 2020 hedging program is comprised of physical forward sales and swaps of Prime's oil cargoes to a group of buyers including major oil companies and commodity trading houses. These counter parties are part of groups with investment grade credit ratings.\nAs previously stated, Africa Oil's 2020 Management Guidance includes estimates of average daily working interest (\"W.I.\") production range of 30,000–33,000  barrels of oil equivalent per day (\"boe/d\") and net entitlement production1 range of 35,000-38,000 boe/d net to AOI's 50% shareholding in Prime, with more than 85% expected to be medium and light oil. \nBased on the above production guidance, Africa Oil management expect Pr...