Dr. Roger Tucker reports

AFRICA OIL ANNOUNCES OFFER TO MINORITY SHAREHOLDERS IN IMPACT OIL & GAS

Africa Oil Corp. has made a cash offer to acquire from minority shareholders in Impact Oil and Gas Ltd. up to 8 per cent of the issued shares in Impact. The offer is made at a price of 72.8 U.S. cents per Impact share, for a consideration of up to approximately $64-million (U.S.), which implies a valuation of $805-million (U.S.) for 100 per cent of the issued share capital of Impact. Africa Oil currently holds a 31.1-per-cent shareholding in Impact.

The share purchase is conditional upon completion of the farm-down transaction for Impact's Namibia assets, announced on Jan. 10, 2024. The offer is made to select minority shareholders and is open for acceptance until April 5, 2024. Africa Oil is under no obligation to purchase any specific number of shares in Impact.

Africa Oil chief executive officer Dr. Roger Tucker commented: "The farm-down agreement with TotalEnergies materially enhances Impact's investment case for Africa Oil. At no upfront cost, we retain exposure to the Venus development, and to the significant follow-on upside potential on blocks 2912/2913B. Venus is expected to add significant reserves and production to Africa Oil's portfolio from the late 2020s through the 2030s.

"This measured advance in our strategic shareholding strengthens our influence over Impact, in line with our objectives for 2024. These include positioning Africa Oil as the leading independent E&P (exploration and production) company in the Orange basin, underpinned by its interests held through Impact, and its direct position in Block 3B/4B with a retained 17-per-cent interest on the completion of the farm-down agreement with TotalEnergies and QatarEnergy, announced on March 6, 2024.

"This is a calibrated capital allocation step, reflecting Impact's ability to drive Africa Oil's valuation and future growth, taken alongside our share buyback and dividend programs, currently under way. We are determined to build the value of our business while also offering our shareholders immediate capital returns. From today, we will increase the daily volume of share repurchases under the current buyback program."

About Africa Oil Corp.

Africa Oil is a Canadian oil and gas company with producing and development assets in deepwater Nigeria and an exploration/appraisal portfolio in western and southern Africa, as well as Guyana.

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