07:57 AM EDT, 03/20/2025 (MT Newswires) -- Africa Oil ( AOIFF ) overnight Wednesday declared its first quarterly cash dividend of US$25 million as the company completed the amalgamation to consolidate all of the Prime Oil & Gas shareholding in Africa Oil ( AOIFF ). The dividend of US$0.0371 per share will be payable April 11 to shareholders of record as of March 27.

The company said the dividend is part of its new enlarged base dividend policy, with a target annual distribution of at least US$100 million.

Africa Oil ( AOIFF ) announced the dividend following the closing of the Prime Oil deal, which doubles the company's reserves and production in offshore assets that benefit from low lifting costs, premium Brent pricing and a favorable fiscal regime.

"This is a transformational milestone that marks the next stage of value creation and shareholder returns for Africa Oil ( AOIFF ) as an enlarged company," said Roger Tucker, Africa Oil's ( AOIFF ) president and CEO.

Africa Oil ( AOIFF ) said the transaction allowed it to consolidate full control of Prime's cash flows and balance sheet with an enlarged cash position of US$460.9 million as of Dec. 31.

The company said it issued 239,828,655 newly issued common shares to BTG Pactual Oil & Gas, representing about 35.5% of the company's outstanding share capital.

"There is compelling strategic rationale for the consolidation and we believe that the quality and materiality of the assets within our diversified portfolio, our newly combined balance sheet, the strength of the cash flow profile and an attractive double-digit dividend yield all help emphasise a superior investment proposition for investors," Tucker said.

Africa Oil ( AOIFF ) also said Aldo Perracini replaced Pascal Nicodeme as Africa Oil's ( AOIFF ) chief financial officer.

Africa Oil ( AOIFF ) outlined its 2025 guidance, including EBITDAX of US$500-US$600 million and working interest production guidance range of 28,000-33,000 barrels of oil equivalent per day.

Africa Oil's ( AOIFF ) share price fell 1.4% on Wednesday to $2.09 on the TSX.