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Africa Energy Signs Farmout Agreements for Block 2B Offshore South Africa
Africa Energy Signs Farmout Agreements for Block 2B Offshore South Africa Canada N...
About this update from Africa Energy Corp.
[{"type":"text","content":"\n\n\n\nAfrica Energy Signs Farmout Agreements for Block 2B Offshore South Africa\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nVANCOUVER, Feb. 25, 2020\n\n\n\nVANCOUVER, Feb. 25, 2020 /CNW/ - Africa Energy Corp. (TSX Venture: AFE) (Nasdaq First North: AEC) (\"Africa Energy\" or the \"Company\"), an oil and gas company with exploration assets offshore South Africa and Namibia, is pleased to announce the execution of two farmout agreements whereby the Company will transfer an aggregate 62.5% participating interest in the Exploration Right for Block 2B offshore South Africa in consideration for a carry through the next exploration well, Gazania-1, which is expected to spud by the end of 2020.  Africa Energy will retain a 27.5% participating interest in Block 2B. View PDF Version\nGarrett Soden, Africa Energy's President and CEO, commented, \"We are excited to farmout part of our interest in Block 2B and add a carried well to our very active and potentially transformational 2020 drilling program. Block 2B has the A-J1 oil discovery from 1988 in shallow water close to shore with significant contingent and prospective resources. The Gazania-1 well will target a relatively low-risk rift basin oil play up-dip from the discovery. We look forward to working with our new partners Azinam and Panoro to prove up more resource offshore South Africa.\" \nUnder the terms of a farmout agreement entered into with a subsidiary of Azinam Limited (\"Azinam\"), a wholly-owned subsidiary of Africa Energy will farmout a 50% participating interest and transfer operatorship in Block 2B to Azinam (the \"Azinam Farmout Agreement\"). In consideration for the assignment of this interest, Azinam will pay Africa Energy US$0.5 million at close and a disproportionate amount of the Gazania-1 exploration well and other joint venture costs. Azinam paid a US$1.5 million deposit to Africa Energy at signature of the Azinam Farmout Agreement and will place an additional amount into escrow at close to support its obligations under the Azinam Farmout Agreement. Azinam is a priv...