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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 August 12 , 2021 ( AOI - TSX , AOI - Nasdaq - Stockholm ) – Africa Oil Corp. ( " Africa Oil " , " AOC " or the " Company " ) is pleased to announce its financial and operating results for the three months ended June 30 , 2021 , and to provide selected results for Prime Oil and Gas Cooperatief UA ( " Prime " ) , a company in which Africa Oil has a 50 % equity interest . Highlights AFRICA OIL ANNOUNCES STRONG SECOND QUARTER 2021 FINANCIAL RESULTS Net income of $ 38.4 million ( first half 2021 total of $ 77.3 million ) and end of quarter cash balance of $ 35.1 million . Received a dividend for $ 37.5 million from Prime during the quarter and a further $ 37.5 million dividend in July . On August 2 , 2021 , Africa Oil announced the closing of its corporate debt facility with $ 160 million committed . The Company utilized $ 98 million of this new facility to fully repay its BTG term loan ( " Term Loan " ) with the undrawn balance of $ 62 million available to Africa Oil until May 2022. This can be utilized for general corporate purposes , subject to customary covenants . At end of July 30 , 2021 , AOC had an approximate cash balance of $ 42 million and net debt of $ 56 million . O Selected Prime's second quarter 2021 results net to Africa Oil's 50 % shareholding * : end of quarter cash position of $ 292.8 million that includes an amount of $ 152.5 million , which is 50 % of the security deposit received from Equinor in relation to the Agbami field ; O average daily working interest ( " W.I " ) production of 28,100 barrels of oil equivalent per day ( " boepd ) and economic entitlement production of 30,500 boepd ( 84 % light and medium crude oil and 16 % conventional natural gas ) ² , ³ ; and EBITDA4 of $ 155.1 million ( first half 2021 total of $ 298.2 million ) and cash flow from operations of $ 252.3 million ( first half 2021 total of $ 338.2 million ) . Post period , in July 2021 , the OML 130 Gas Sales and Purchase Agreement was signed by Prime and all other parties , settling historical gas sales from July 2018. This will result in an additional $ 36 million of sales revenue with a net cash payment of $ 21 million expected in the third quarter 2021 , in each case net to Africa Oil's 50 % shareholding . Field operational performance remains strong and was enhanced by the removal of production limitations on Egina due to OPEC constraints . Africa Oil President and CEO Keith Hill commented : " We are going from strength to strength on the back of excellent operational performance and strong cash flows from our Nigerian assets . We have significantly deleveraged , reduced our cost of capital and improved liquidity . I am very pleased with the strong cash position in Prime at end of the second quarter , standing at $ 293 million net to our 50 % shareholding . I am also encouraged by the initial positive indications of Nigeria's Petroleum Industry Bill , which is expected to facilitate new project investments and support early license extensions . Our Kenya project continues to gain momentum and we look forward to the drilling of two high impact exploration wells , Venus and Gazania , by end of the year . With the improved financial position , Africa Oil is considering the option to institute a shareholder capital return program by end of this year , which could include a dividend policy and / or share buyback program , subject to the necessary approvals . " * Important information : Africa Oil's interest in Prime is accounted for as an investment in joint venture . Refer to Note 1 on page 4 for further details . Please also refer to other notes on page 4 for important information on the material presented .