Canadian independent Meren Energy announces Q2 2025 results, provides Africa operations update

Canadian-based independent oil and gas company Meren Energy (formerly trading as Africa Oil Corporation) has published its financial and operating results for the three- and six-month periods that ended June 30, 2025.

The second half of H1 2005 was an especially significant period for the company and its bottom line. 

The rebranding of Africa Oil Corporation in May was driven by a major corporate transformation - a consolidation in March known as the Prime deal. Prime Oil & Gas Coöperatief (Prime) was a joint venture (JV) between Africa Oil and global financial firm BTG Pactual with producing deepwater assets offshore Nigeria.

The Prime consolidation deal doubled the Africa-focused full-cycle E&P company’s production and reserves, especially through newly strengthened deepwater assets in Nigeria, as reported by NewsBase at the time.

In a press release on August 12, Meren Energy said it achieved average entitlement production of 35,700 barrels of oil equivalent per day (boepd) in Q2 2025, brought two new Egina wells (in the Egina oil field offshore Nigeria) onstream, sold one million barrels at $64.2per barrel, and reduced its debt to $540mn, ending the quarter with $266.6mn in cash.

The company declared its third quarterly dividend of $25mn, bringing total 2025 payouts to $75.1mn, and further cut debt to $480mn in July.

“Against a backdrop of increased oil price volatility and global economic uncertainty, we continue to deliver material shareholder returns whilst maintaining a strong balance sheet and significant liquidity headroom,” said Meren Energy president and CEO Roger Tucker.

“We have a resilient business and are confident of continuing to deliver growth and returns through the business cycle, supported by our high-quality, high netback assets and funded growth catalysts.”

Nigeria

Offshore Nigeria, three oilfields in the Niger Delta Basin - Akpo, Egina and Preowei - are covered by Oil Mining Lease (OML) 130, operated by France’s supermajor TotalEnergies, while OML127 covers the Agbami field with US energy giant Chevron as operator.

Meren Energy and its JV partners are optimising output from the Akpo, Egina and Agbami fields while advancing the Preowei project towards a final investment decision (FID).

Preowei seismic re-assessment indicates higher recoverable resources, with optimisation work ongoing, while preparations continue for Agbami’s 2027 infill drilling campaign.

The Akpo/Egina drilling pause has been brought forward to Q3 2025 for 4D seismic interpretation, with drilling to resume in 2026, including the Akpo Far East prospect, which - in case of commercial success - could deliver short-cycle, high-return production using existing infrastructure facilities.

Namibia

In Namibia, the Venus Field in the highly prospective Orange Basin is the first expected development area in Block 2913B. The development plan specifies up to 40 subsea wells tied back to a floating production, storage and offloading (FPSO) facility with a 160,000 bpd capacity.

Through its stake in Impact Oil & Gas – a junior exploration company focused on West African deepwater assets – Meren Energy holds an effective 3.8% interest in Venus. This interest is fully funded under an agreement between Impact and operator TotalEnergies, covering all Impact’s exploration and development costs through to first commercial production. Exploration drilling concluded on April 25, with the drilling rig demobilised. Several further prospects under evaluation were using new 3D seismic data, the company said.

South Africa

In September 2024, South Africa’s Department of Mineral Resources and Energy (DMRE) granted environmental authorisation for up to five exploration wells on deepwater Block 3B/4B off the west coast of South Africa. The approval process is ongoing, with the first well planned for 2026 targeting the Nayla prospect in the block’s northwest.

In Q3 2024, Meren Energy (then Africa Oil) farmed down to TotalEnergies and QatarEnergy in a deal worth up to $46.8mn. According to Meren’s statement, the deal includes $10mn in staged cash payments and a full carry of its remaining JV costs, sufficient to fund its share of one to two exploration wells, up to a cap, that will be repayable to TotalEnergies and QatarEnergy from future production.

Block 3B/4B is in the Deep Western Orange Basin (DWOB) offshore South Africa, close to the maritime border with Namibia. It lies south of Namibia’s huge Venus and Graff discoveries. TotalEnergies is the operator, with the current equity split: TotalEnergies 33%, QatarEnergy 24%, Meren Energy 18%, Ricocure 19.75%, and Azinam/Eco Atlantic 5.25%.

Equatorial Guinea, EG‑18 and EG‑31

Meren Energy remains in active discussions with industry participants to attract farm‑in partners for Block EG-18 and Block ED-31 offshore Equatorial Guinea, aiming to complete the active data‑room phase by the end of Q3 2025.

If successful, and subject to customary consents and regulatory approvals, the newly formed JVs could target exploration drilling in late 2026 or 2027, the company said. However, there can be no assurance that suitable farm‑in partners will be secured on acceptable terms.

About Meren Energy

Meren Energy (formerly Africa Oil Corporation) is a full-cycle independent upstream oil and gas company with interests offshore Nigeria, Namibia, South Africa and Equatorial Guinea. The company’s key assets include producing and development fields in deepwater Nigeria operated by industry majors. Meren Energy is listed on the Toronto Stock Exchange (TSX) and the Nasdaq Stockholm.