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 ~326m and is a member of the Lundin Group. Africa Energy has a very experienced technical team with a track record of exploration success across Africa. This includes 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 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 increased its stake in the block to a 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 was Luiperd, where the partners announced a large gas condensate discovery in late October 2020, with the company stating that the 73 meters of net pay is significantly larger than the Brulpadda discovery. Further, the production test results indicated a liquids-ratio of 43%, well above the previously assumed 25%. In the coming months, we expect more information on the recoverable resources (with our 1.25bn boe estimate potentially proving conservative), development concept and potential news regarding Total’s gas offtake negotiations with the Government.

Other catalysts include closing of the Block 2B farm-out agreements with Azinam and Panoro Energy ahead of a planned oil exploration well in Q3’21e, 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.