Africa Oil Corp. expects to complete its full takeover of Prime Oil & Gas in March, ahead of the initially projected third quarter. Prime, which holds offshore Nigeria assets, currently accounts for all of Africa Oil’s production. Under the deal announced in June 2024, BTG Oil & Gas will exchange its Prime stake for 35.5% of the enlarged Africa Oil.Africa Oil shareholders approved the consolidation on October 15, 2024.
The company expects the reorganization to boost its annual dividend to at least $100 million ($0.15 per share), tripling the current $0.05 per share, pending board approval. Prime’s Q4 production fell to 270,300 boed from 296,700 boed in 2023 due to natural reservoir declines.In Q4 2024, Africa Oil’s share of production was 17,200 boed in working interest and 19,500 boed in entitlement production.
The company reported no net oil sales but sold 2.5 Bcf of natural gas, up from 2.4 Bcf in Q4 2023. Revenue dropped to $2.2 million from $173.6 million, while gross profit fell to $36.2 million from $70.5 million.In Q4 2024, Africa Oil’s cash flow from operations fell to $29.3 million from $43.9 million, while free cash flow declined to $8.8 million from $16.7 million.
EBITDA rose to $242.3 million from $112.3 million. The company posted a $6.2 million net profit, reversing an $88.8 million loss in Q4 2023, but had an adjusted net loss of $3.2 million due to higher administrative costs. It ended 2024 with $61.4 million in cash and cash equivalents.
