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A AfricaOil Corp. NEWS RELEASE Suite 2000 885 West Georgia Street Vancouver , B.C. Canada V6C 3E8 Ph . 604-689-7842 africaoilcorp@namdo.com africaoilcorp.com Africa Oil Announces 2020 Fourth Quarter Results and 2021 Management Guidance Vancouver , BC - Feb. 26 , 2021 ( AOI : TSX ) ( AOI : Nasdaq Stockholm ) Africa Oil Corp. ( " Africa Oil ” , " AOC " or the " Company " ) is pleased to announce its operating and consolidated financial results for the three months and the year ended December 31 , 2020. The Company is also releasing today , its 2021 Management Guidance including guidance related to its 50 % equity investee , Prime Oil & Gas Coöperatief U.A ( " Prime " ) . Highlights • • • • • Africa Oil fourth quarter net income of $ 79.8 million and full - year net income of $ 198.0 million , excluding a $ 215.6 million non - cash impairment of Kenya exploration assets posted in the first quarter 2020 . Strong quarterly profit contribution by Prime to AOC's net income amounting to $ 59.2 million . During 2020 , Africa Oil repaid $ 109 million of its $ 250 million corporate term loan facility and has commenced the refinancing process for the balance with closing expected in July 2021 . Year - end 2020 cash balance of $ 40.5 million and working capital of $ 29.3 million . Selected Prime's fourth quarter 2020 results net to Africa Oil's 50 % shareholding * : ○ quarterly average daily working interest ( " W.I " ) production of 26,200 barrels of oil equivalent per day ( " boepd ) and economic entitlement production of 30,100 boepd ( 83 % light and medium crude oil and 17 % conventional natural gas ) 2,3 ; ○ full - year W.I. production of 28,700 boepd and economic entitlement production of 33,900 boepd ( 85 % light and medium crude oil and 15 % conventional natural gas ) are in line with Third Quarter 2020 Management Guidance 2,3 ; and ○ EBITDA of $ 128.8 million ( full - year period : $ 619.5 million ) 4 . 2021 Management Guidance ( refer to page 3 for more details ) : о average daily W.I. production range of 24,000-28,000 boepd and net entitlement production range of 26,000-30,000 boepd net to AOC's 50 % shareholding in Prime , with approximately 85 % expected to be light and medium crude oil and 15 % conventional natural gas ; and O Prime's cash flow from operations 5 of $ 310- $ 440 million net to AOC's 50 % shareholding . Africa Oil President and CEO Keith Hill commented : " I am pleased to report strong full - year results for the Company , despite one of the most challenging years for our industry . Our investment in Prime has performed exceptionally well with its strong production and free cash flows that enabled significant deleveraging , both at the Prime and Africa Oil corporate levels . Prime reduced its RBL debt by $ 522 million or 29 % of the principal amount at the start of 2020. Africa Oil reduced its corporate term loan by $ 109 million or 44 % of the original amount of $ 250 million that was drawn in January 2020. We are in a strong position to continue this strong performance and also plan to pursue new business development opportunities with a focus on the acquisition of producing assets , offshore West Africa . We can also look forward to exciting catalysts through our other portfolio investment companies . These include further progress in the development of Block 11B / 12B discoveries , offshore South Africa , the drilling of the Venus exploration well in Block 2913B , offshore Namibia and the drilling of the Gazania * Important information : Africa Oil's interest in Prime is accounted for as an investment in joint venture . Refer to Note 1 on page 5 for further details . Please also refer to other notes on page 5 for important information on the material presented .