Africa Oil Corp rebrands as Meren Energy following transformational deal

Africa Oil Corp has announced it will change its name to Meren Energy Inc, as it emerges from a phase of transformation.

It comes after the completion of the company’s transactions to consolidate interests in Nigeria (the Prime consolidation), which closed in March, and marked the firm’s maturation into a ‘full cycle’ E&P (exploration and production) company.

The company now comprises a substantial cash-generative production platform and a portfolio of high-impact, ‘world-class’ projects in some of the last remaining oil and gas exploration frontiers.

Notably, it has interests in a number of projects in the exciting Orange Basin, offshore Namibia and South Africa.

‘MER’ trading starts Monday

The stock, which trades in Canada and Sweden, will trade under the new name and a new symbol ‘MER’, from Monday, 19 May.

‘Meren’ is an old nautical term that refers to the mooring of a vessel as it docks, and is tied to maritime legends who ‘set sail in pursuit of new worlds’.

And, the company says the new name mirrors its “stability anchored by a diverse portfolio, strong cash flow profile and proven ability to work side by side with industry leaders on world-class assets”.

CEO Roger Tucker, meanwhile, told investors that the recent deal completion “felt like the natural catalyst to rebrand”.

He said: “Over the last couple of years, we have worked diligently to enhance our investment proposition by simplifying the structure of the business and gaining more direct interests in our large-scale and high-netback assets in deepwater Nigeria.

“The business model has also evolved considerably over the past few years; moving away from being exploration led to being a full-cycle E&P underpinned by strong cash flow generation that supports our commitment to meaningful shareholder returns."

The company noted that its strategic objectives remain the same – namely, to drive long-term value through its existing portfolio and deliver ‘compelling’ shareholder returns.

It plans it will continue to grow as a leading independent E&P, and will “judiciously consider” strategic acquisitions (producing assets in its targeted markets).

First quarter update

The company, in its separate first-quarter trading statement, highlighted that it was “significantly transformed” in terms of scale and structure, through the completion of the Prime business amalgamation.

For the quarter, meanwhile, it reported net income of $50.9 million ($0.11 per share).

The Prime consolidation completed on 19 March.

Consolidated guidance for 2025 anticipates 28,000 to 33,000 barrels oil equivalent per day of production and 32,000 to 37,000 barrels oil equivalent of ‘entitlement’ production.

In the first quarter, it achieved 33,400 and 37,700 barrels, respectively.

The company ended the quarter with $428.4 million of cash and $191.6 million of debt.

And, it is to pay $25 million of interim dividends for the quarter ($0.0371 per share) payable on 11 June.