Presentation

Africa Energy is an oil and gas exploration company with dual listing on the Toronto Venture and Nasdaq First North exchanges. It has a market capitalization of USD ~275m and is a member of the Lundin Group. Africa Energy has a very experienced technical team with a track record of exploration success. These include the Jubilee oilfield (~1.2bn barrels) in Ghana, the Lake Albert basin (~1.7bn barrels) in Uganda and South Lokichar (~800 mill barrels) in Kenya.

In 2019, Africa Energy participated in drilling the Brulpadda-1 well on Block 11B/12B, offshore South Africa. This well made a gas condensate and light oil discovery that exceeded pre-drill expectations and is estimated by third parties to contain more than 1bn boe of prospective resources. Africa Energy recently announced an increase in its stake to 10% interest, whilst operator Total holds a 45% interest.

The Brulpadda well opened a significant new hydrocarbon basin and derisked a fairway with at least four additional prospects. First in line is Luiperd, where drilling commenced in late August with results anticipated in late October. The prospect has a pre-drill potential of at least 750 mill boe and will be followed by the drilling of two additional wells on the block. Combined, the wells will target more than 3bn boe (incl. Kloofpadda prospect), with Africa Energy indicating a >80% chance of success.

Other catalysts include closing of the Block 2B farm-out agreements with Azinam and Panoro Energy ahead of planned drilling in Q1’21, for which the costs will be covered by the incoming partners. The closing is subject to standard conditions including approval from the South Africa government.