Africa Oil Corp. is pleased to announce its financial and operating results for the three and six months ended June 30, 2024 in Namibia Orange Basin Appraisal and Exploration Campaign and South Africa Orange Basin, Block 3B/4B

 South Africa Orange Basin, Block 3B/4B

On July 29, 2024, the Company signed an agreement to acquire an additional 1.00% interest in Block 3B/4B from Eco. The Company also announced a farm down agreement for Block 3B/4B with TotalEnergies and QatarEnergy on March 6, 2024, which includes the transfer of operatorship of the Block to TotalEnergies for a total consideration, including the carry, of up to $46.8 million. The closing of both transactions is subject to government approval and is expected in 2024. On completion of these transactions, the Company will retain a non-operated 18.00% interest in the Block.

The Company submitted an ESIA application for proposed drilling activities on the Block during Q2 2024. An initial response is expected from the regulator during Q3 2024. The Company has also been working on the transition of operatorship to TotalEnergies following the signing in Q1 2024 of the farm down agreement with TotalEnergies and QatarEnergy. Subject to obtaining the requisite approvals, the Company expects that the first exploration well on Block 3B/4B could be drilled during 2025.

Namibia Orange Basin Appraisal and Exploration Campaign

The drilling and test results from Venus-1X, Venus-1A, Venus-2A and Mangetti-1X (Venus interval), completed in 2023 and H1 2024, support the development of the Venus oilfield. The technical studies to be carried out during 2024 are expected to define the Venus development concept.

In addition to the Venus opportunity, the Company has retained upside exposure to appraisal and exploration opportunities that, in a success case, could significantly increase the existing discovered resource base on Blocks 2912 and 2913B. Processing of data from the 3D seismic data survey that was completed during H1 2024, could better define the prospectivity on Block 2193B to the south of the Venus discovery. The joint venture (“JV”) will consider drilling further high-impact exploration wells on separate fan structures on this Block in late 2024 or 2025 once the 3D seismic interpretation work is completed. The Mangetti-1X exploration well, located approximately 35km to the Northwest of the Venus-1X well, also intersected hydrocarbon bearing intervals in the Mangetti and Venus fans. The operator has commenced planning of a well to appraise the Mangetti Fan.

On January 10, 2024, the Company announced a strategic farmout agreement between its investee company Impact Oil and Gas Limited (“Impact”), and TotalEnergies, that allows the Company to continue its participation in the world class Venus oil development project, and the follow-on exploration and appraisal campaign on Blocks 2913B and 2912 with no upfront costs. Completion of this transaction will free up the Company’s balance sheet for the pursuit of other growth opportunities and shareholder capital returns.

At the date hereof, AOC has an interest in this program through its 31.1% shareholding in Impact, which in turn has a 20.0% WI in Block 2913B (PEL 56) and 18.9% in Block 2912 (PEL 91). On closing of the farm-out transaction with TotalEnergies, Impact will retain a carried 9.5% WI in each of the two Blocks. Africa Oil plans to complete the purchase of the shareholdings of certain minority shareholders of Impact in Q3 2024.