Africa Oil Boosts Stake in Orange Basin, Unveils Share Buyback Results

Africa Oil Corp. (AOI) has announced a strategic increase in its direct interest in Block 3B/4B, offshore South Africa, to 18%. This move aligns with the company's strategy to boost its direct interest in key assets, as highlighted by CEO Dr. Roger Tucker: "This transaction is another step in delivering the strategy of increasing direct interest in Africa Oil's key assets, including our opportunity set in the Orange Basin, a region with high levels of industry interest and activity." The company has completed a transaction with Eco (Atlantic) Oil & Gas Limited and its unit Azinam Limited, whereby Azinam has transferred a 1.0% interest in Block 3B/4B to Africa Oil. In consideration, Africa Oil has exchanged the shares and warrants that it held in Eco for cancellation.

Block 3B/4B, operated by TotalEnergies, lies to the southeast and on trend with a number of Orange Basin oil discoveries, including Venus. The block covers an area of 17,581 km2 within the Orange Basin offshore South Africa in water depths ranging between 300m and 2,500m. There is approximately 14,000 km of 2D seismic and 10,800 km2 of 3D seismic over Block 3B/4B, identifying a large opportunity set of exploration prospects, with the majority of the prospects lying in approximately 1,500m of water.

The Africa Oil group now holds a direct 18.00% interest in Block 3B/4B. Other partners in the block are: TotalEnergies with a 33.00% operated interest; QatarEnergy with a 24.00% interest; Ricocure with a 19.75%; and Eco with a 5.25% interest. AOSAC, Africa Oil's subsidiary, will have the benefit of exploration carry for the additional 1.00% interest assigned to it by Azinam.

In addition to the strategic move in the Orange Basin, Africa Oil has released the results of its share buyback program. The company repurchased a total of 416,700 Africa Oil common shares during the period of December 23, 2024 to December 27, 2024. This repurchase was carried out by Scotia Capital Inc. on behalf of the Company, with 196,700 shares repurchased on the TSX and/or alternative Canadian trading systems, and 220,000 shares repurchased on Nasdaq Stockholm through Pareto Securities.

The share buyback program, announced on December 4, 2024, is being implemented in accordance with the Market Abuse Regulation (EU) No 596/2014 (MAR) and Commission Delegated Regulation (EU) No 2016/1052 (Safe Harbour Regulation) and the applicable rules and policies of the Toronto Stock Exchange ("TSX"), Nasdaq Stockholm, and applicable Canadian and Swedish securities laws. Since December 6, 2024, up to and including December 27, 2024, a total of 2,308,100 Africa Oil common shares were repurchased under the share repurchase program.

The share buyback program has a positive impact on Africa Oil's capital structure and shareholder value by reducing the number of outstanding shares, increasing EPS and book value per share, signaling confidence in the company's shares, optimizing the capital structure, and potentially leading to higher dividend payouts. This strategic move, coupled with the increased exposure to the Orange Basin, positions Africa Oil for future growth and success in the oil and gas industry.