AOIFF - Africa Oil reaches new exploration milestone with strategic farm-out partnership in Orange Basin

(NewsDirect)

Africa Oil Corp (TSX:AOI) InvestorRelations Manager Shahin Amini discusses the company's newpartnership with TotalEnergies and Qatar Energy for the exploration ofBlock 3B/4B in the Orange Basin.

Amini told Proactive's Stephen Gunnion the collaborationmarks a significant endorsement of the block's explorationpotential, leveraging the expertise and resources of these notableenergy companies.

The value derivedfrom this deal for Africa Oil is estimated at $46.8 million, including$10 million in staged payments. Africa Oil's stake will reduce to17% from 26.25%, and the deal includes a cash component subject toachieving specific operational and regulatory milestones, and a carryagreement that could cover up to two exploration wells' costs.

Amini noted that the strategicpartnership allows Africa Oil to explore with "other people'smoney," aligning with their business model of early basin entry,comprehensive geological assessment, and then attracting resourcefulpartners for exploration financing.

Additionally, Africa Oil, through its investment in Impact Oiland Gas Limited, has exposure to another promising block in Namibia,highlighting the company's significant acreage position offSouthern Africa's coast.

The next steps for Block 3B/4Binclude working with the new partners and operator to plan for apotential exploration well in 2025, with further developments to becoordinated with the operator.

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