Africa oil - buyback announced

NordicGuy
AOI 04.12.2023 kl 08:28 398

Buyback!

Africa Oil is authorized to repurchase through the facilities of the TSX, Nasdaq Stockholm and/or alternative Canadian trading systems, as and when considered advisable by Africa Oil, up to 38,654,702 common shares of Africa Oil (the "Common Shares"), which represents 10% of the Company's "public float" of 386,547,028 Common Shares as at November 27, 2023. As of the same date, Africa Oil had 462,945,871 Common Shares issued and outstanding. Purchases of Common Shares will occur over a period of twelve months commencing December 6, 2023 and ending on the earlier of December 5, 2024, the date on which the Company has purchased the maximum number of Common Shares permitted under the NCIB, and the date on which the NCIB is terminated by Africa Oil.
NordicGuy
I går kl 10:44 77

Pareto today on Africa Oil.
PriceTartget 28 NOK

Africa Oil’s complicated asset ownership structure will drastically
improve once its Nigerian production base is fully consolidated post
close of the Prime acquisition expected in Q1’25e. This will for the first
time provide direct visibility on earnings and cash flows, which
previously have been well hidden and not fully controlled by the
company. Combined with a doubling of production and a 3x dividend
increase to “minimum USD 100m/year” (11% yield), we think this will
trigger a repricing. FCF yield of 26% and P/E 4.9x in 2025 at Brent
USD 75/bbl, on our estimates, is too cheap – particularly given its
“major-like” asset quality and unique exposure to the Venus discovery
offshore Namibia. FID of Venus is expected next year while 2-4
additional wells likely will be drilled to assess the upside potential on
the block – both improving visibility on values. In sum, this should next
year lift Africa Oil out of t