Africa Oil acquired a 50% stake in Prime Oil and Gas, which owns stakes in Agbami, Akpo and Egina, which produced around 530,000 barrels of oil equivalent per day in the quarter. The economic entitlement production net to Africa Oil was 43,000 boepd, of which 88% was oil. The average operating cost was $5.8 per boe.
Africa Oil’s CEO Keith Hill said operations at its 3 Nigerian fields had been excellent. “I take great comfort in Prime’s industry leading oil hedging position that provide for stable cash flows. More than 90% of Prime’s production is hedged at an average price of $66 per barrel and most of its production for 1st quarter 2021 is hedged at an average price of $60 per barrel.”
The company took “immediate steps” to cut costs and defer capital expenditure, he said. “I am confident that we are in a robust position to ride out these turbulent markets and to emerge in a strong position to benefit from future business development opportunities.”
Africa Energy said on May 6 that it expected a well to be drilled in South Africa’s Block 11B/12B in the 3rd quarter of this year. This Luiperd well will be the 1st in the area since the large Brulpadda discovery in February 2019.
