VANCOUVER, BC, April 20, 2021 /CNW/ - Africa Energy
Corp. (TSXV: AFE) (Nasdaq First North: AEC) ("Africa
Energy" or the "Company"), an oil and gas company with exploration
assets offshore South Africa and
Namibia, has received governmental
approval and closed the previously announced farmout transactions
on Block 2B offshore South Africa. The Company has transferred
operatorship and an aggregate 62.5% participating interest in the
Exploration Right for Block 2B in
consideration for a carry through the next exploration well,
Gazania-1, which is expected to spud by the end of 2021. Africa
Energy retains a 27.5% participating interest in Block 2B. View PDF version.
Garrett Soden, Africa Energy's
President and CEO, commented, "We are excited to partner with
Azinam and Panoro on Block 2B to
drill the Gazania-1 exploration well this year. Block 2B has the A-J1 oil discovery from 1988 in
shallow water close to shore with significant contingent and
prospective resources. Gazania will target a relatively low-risk
rift basin oil play up-dip from the discovery. IHS Markit recently
highlighted Gazania as one of the top high-impact wells expected to
be drilled globally in 2021. We have already started the rig
contracting process, and we look forward to proving up more
resource offshore South
Africa."
Africa Energy has farmed-out a 50% participating interest and
transferred operatorship in Block 2B
to Azinam Limited ("Azinam"). In consideration for the assignment
of this interest, Azinam paid Africa Energy US$0.8 million at close, which includes
reimbursement of costs incurred prior to completion. In addition,
Azinam will pay a disproportionate amount of the Gazania-1
exploration well and other joint venture costs. To support this
obligation, Azinam paid a second US$1.5
million deposit to Africa Energy at close and is required to
place additional funds in escrow prior to signing a rig contract.
Azinam is a private Southern
Africa-focused oil and gas exploration company supported by
Seapulse Ltd., a vehicle backed by Robert
Friedland and Seacrest.
At the same time, Africa Energy has also farmed-out a 12.5%
participating interest in Block 2B to
Panoro Energy ASA ("Panoro"). In consideration for the assignment
of this interest, subject to Azinam placing the required funds in
escrow as noted above, Panoro will pay a disproportionate amount of
the Gazania-1 exploration well costs. Panoro is an Africa-focused independent oil and gas
exploration and production company listed on the Oslo Stock
Exchange.
Block 2B is located in the Orange
Basin and covers 3,062 square kilometers off the west coast of
South Africa 300 kilometers north
of Cape Town with water depths
ranging from 50 to 200 meters. Oil was discovered and tested by
Soekor in the A-J1 borehole drilled in 1988. Thick reservoir
sandstones were intersected between 2,985 meters and 3,350 meters.
The well was tested and flowed 191 barrels of oil per day of 36
degree API oil from a 10 meter sandstone interval at about 3,250
meters. Significant prospectivity has been identified over the
entire A-J graben area using 686 square kilometers of 3D seismic
data from 2013. Crown Energy AB indirectly holds the remaining 10%
participating interest of Block 2B.
About Africa Energy Corp.
Africa Energy Corp. is a Canadian oil and gas company with
exploration assets offshore South
Africa and Namibia. The
Company is listed in Toronto on
TSX Venture Exchange (ticker "AFE") and in Stockholm on Nasdaq First North Growth Market
(ticker "AEC"). Africa Energy is part of the Lundin Group of
Companies.
Important information
This is information that Africa Energy is obliged to make public
pursuant to the EU Market Abuse Regulation. The information was
submitted for publication through the agency of the contact persons
set out above on April 20, 2021 at
1:00 a.m. Eastern Time.
The Company's certified advisor on Nasdaq First North Growth
Market is Pareto Securities AB, +46 8 402 5000,
certifiedadviser.se@paretosec.com.
Forward-looking statements
Certain statements contained in this press release constitute
forward-looking information. These statements relate to future
events or the Company's future performance, business prospects and
opportunities, which are based on assumptions of management.
The use of any of the words "will", "expected", "planned" and
similar expressions and statements relating to matters that are not
historical facts are intended to identify forward-looking
information and are based on the Company's current belief or
assumptions as to the outcome and timing of certain future events.
These forward-looking statements involve risks and uncertainties
relating to, among other things, ability of partners to fund
obligations and cost of joint venture activities, changes in oil
prices, results of exploration and development activities,
including results, timing and costs of seismic and drilling
activity in the Company's area of operations and, uninsured risks,
regulatory changes, defects in title, availability of funds
required to participate in the exploration activities, or of
financing on reasonable terms, availability of materials and
equipment, timeliness of government or other regulatory approvals,
actual performance of facilities, availability of third party
service providers, equipment and processes relative to
specifications and expectations and unanticipated environmental
impacts on operations. Actual future results may differ materially.
Various assumptions or factors are typically applied in drawing
conclusions or making the forecasts or projections set out in
forward-looking information. Those assumptions and factors are
based on information currently available to the Company. The
forward-looking information contained in this release is made as of
the date hereof and the Company is not obligated to update or
revise any forward-looking information, whether as a result of new
information, future events or otherwise, except as required by
applicable securities laws. Because of the risks, uncertainties and
assumptions contained herein, investors should not place undue
reliance on forward-looking information. The foregoing statements
expressly qualify any forward-looking information.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Africa Energy Corp.
