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Highlights
- Africa Oil to receive approximately USD 31.6 million from Impact Oil & Gas dividend distribution.
- Dividend follows Impact’s receipt of USD 99 million from TotalEnergies farm-down transaction.
- Payment of USD 0.0702 per share will be made to shareholders as of January 20, 2025.
Africa Oil Corp. (TSX:AOI) (Nasdaq-Stockholm: AOI) is pleased to announce that its investee company, Impact Oil & Gas Limited ("Impact"), has approved a significant dividend of approximately USD 80 million. The dividend, which amounts to USD 0.0702 per ordinary share, will be distributed to Impact’s shareholders, with Africa Oil's shareholding of 39.5% translating to an expected payment of approximately USD 31.6 million. This dividend payment will be made on January 29, 2025, to shareholders of record as of January 20, 2025.
Dividend Payment from Impact Oil & Gas
The dividend distribution follows the successful completion of the farm-down transaction between Impact and TotalEnergies, which was finalized in November 2024. This deal, involving the transfer of interests in Blocks 2912 and 2913B offshore Namibia, resulted in a substantial cash payment of USD 99 million from TotalEnergies to Impact. The approval of the dividend by Impact’s Board is in line with their strategy to distribute a portion of these proceeds to shareholders, further reflecting the strong financial position following the completion of the farm-down.
For Africa Oil, the dividend distribution represents a notable financial benefit, providing the company with a direct cash inflow of USD 31.6 million. This amount will enhance Africa Oil’s liquidity, supporting its ongoing operations and investment opportunities in Africa’s growing oil and gas sector.
Africa Oil’s Strategic Position
Africa Oil Corp. is a leading Canadian oil and gas company with significant assets in deepwater Nigeria, as well as interests in offshore Namibia’s Venus light oil and associated gas discovery. The company also holds a portfolio of exploration and appraisal assets across West and South Africa. With a strategic focus on high-value, resource-rich regions, Africa Oil continues to enhance its position within the African oil and gas industry.
The dividend from Impact further strengthens Africa Oil’s financial position and highlights the value generated by its investments in high-quality oil and gas projects. As Africa Oil continues to advance its development and exploration projects, this cash injection will provide added flexibility to drive future growth.
Future Outlook
The ongoing success of Africa Oil’s strategic investments, such as its stake in Impact Oil & Gas, positions the company for long-term success in the energy sector. The dividend payout serves as a testament to Africa Oil’s ability to create value for its shareholders while expanding its portfolio across high-potential oil and gas regions.
