Meren Energy Inc., recently rebranded from Africa Oil Corp., has adjusted down its EBITDAX and cash flow guidance for 2025 due to an expected weakening of oil prices, as well as narrowed its production forecast for the year.
The Vancouver, Canada-based company, which explores and develops oil and gas in Africa, reported $3.1 million in net profit for the second quarter. That was up from $400,000 for the same three-month period last year.
April-June 2025 marked its first full quarter since its full takeover of Prime Oil & Gas Cooperatief UA, previously a 50-50 venture with BTG Pactual Oil & Gas SaRL. As part of the transaction, BTG Oil & Gas, registered in Luxembourg, acquired a 35.5 percent stake in the enlarged Africa Oil, which renamed to Meren.
Meren, which currently derives its production from Nigeria, reported a working interest output of 30,900 barrels of oil equivalent a day (boed) in Q2 2025, down from 32,100 boed in Q2 2024. It defines working interest production as production calculated based on project volumes multiplied by the company’s effective working interest in each license.
Meanwhile entitlement production dropped to 35,700 boed in Q2 2025 from 36,600 boed in Q2 2024. Meren defines entitlement production as production calculated using the economic interest methodology, including cost recovery oil, royalty oil and profit oil.
Cash flow from operations totaled $77.7 million for Q2 2025, while EBITDAX came at $106.6 million. Capital investments totaled $30.4 million.
For the full year Meren now expects working interest production to average 30,000-33,000 boed, compared to the previous guidance of 28,000-33,000 boed. Entitlement production guidance has been updated to 34,500-37,500 boed from 32,000-37,000 boed.
Guidance for cash flow from operations has been revised to $260-310 million from $320-370 million. That of EBITDAX has been curbed to $450-500 million from $500-600 million. Expected capex for the year has also been squeezed to $100-140 million from the previous guidance of $150-190 million.
“EBITDAX and cash flow from operations guidance ranges are revised lower mainly from a lower full-year average Dated Brent oil price estimate of $69/bbl, compared to the assumption of $75/bbl used for the original management guidance”, Meren said. “The revised full-year oil price estimate of $69/bbl accounts for average Dated Brent price of $72/bbl for H1 2025 and an average Dated Brent price of $66/bbl for H2 2025”.
The board declared a dividend per share of $0.0371, a total of $25 million. That is payable to shareholders of record as of August 20.
Meren ended the quarter with a net debt position of $273.4 million. Cash balance at the end of Q2 2025 was $266.6 million.
“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”, chief executive Roger Tucker said.
To contact the author, email jov.onsat@rigzone.com
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