Africa Oil Completes Prime Consolidation, Initiates $100M Dividend Plan

Africa Oil Corp has completed the consolidation of its shareholding in Prime Oil & Gas, now owning 100% of the venture, which is expected to double its reserves and production capacity. The company has announced a new base dividend policy targeting at least $100 million in annual distributions, alongside declaring a quarterly dividend of $25 million. CEO Roger Tucker emphasized the strategic rationale behind the consolidation, highlighting the strengthened balance sheet and enhanced cash flow profile as key factors for investment appeal. The new structure also includes significant changes to the board, with new directors appointed, and a commitment to return at least 50% of excess free cash flow to shareholders. Analysts have described the consolidation as a 'transformational milestone', anticipating increased shareholder returns and growth opportunities. Africa Oil plans to leverage its enhanced scale to solidify its position in the oil and gas sector as a leading exploration and production company.