Africa Energy Corp. · TSXV:AFE
Africa Energy — Investor Presentation (December 2018)
23 slides from Africa Energy's investor presentation, December 2018
Slide 1: Near-Term High-Impact Creating Value Through Oil Exploration in Africa
AFRICA ENERGY CORP Near-Term High-Impact Creating Value Through Oil Exploration in Africa December 2018 Deepsea Stavanger currently drilling the Brulpadda Prospect on Block 11B/12B in South Africa.
Slide 2: Corporate Profile
Corporate Profile Asset Footprint • Independent oil exploration company • Listed on TSX Venture and Nasdaq First North Stockholm • Focused on under-explored regions in Africa • Backed by Lundin Group • Proven technical team from Energy Africa / Tullow Oil • Near-term high-impact exploration assets •
Slide 3: Business Model & Strategy
Business Model & Strategy Access Ground-floor Realize value Monetize Strategic near-term entry into through the on production catalysts via strategic drill bit success acquisitions farmins or post-codes acquisitions 5 4 3 2 1 Prove the resource and monetize Slide 3 Africa Energy | December 2018
Slide 4: Building a Regional African Champion
Building a Regional African Champion New Venture Focus Areas • Focused on frontier regions in Africa • Prefer offshore, non-operated minority interests MSGB Basin • Targeting stable countries with good commercial terms Cretaceous Rifts Net State Take & Participation by Country 0% 10% 20% 30% 40% 50%
Slide 5: Lundin Group of Companies
Lundin Group of Companies 13 companies Combined market cap $27 billion Core shareholder with global footprint Group market cap information shown in CAD as of September 30, 2018. Slide 5 Africa Energy | December 2018
Slide 6: Lundin Group in Africa
Lundin Group in Africa Lundin investment in Africa exceeds $5 billion Slide 6 Africa Energy | December 2018
Slide 7: Non-Executive Directors
Non-Executive Directors Ashley Heppenstall, Chairman • Advisor to the Lundin family and Director of several Lundin Group companies • Previously President and CEO of Lundin Petroleum AB Keith Hill, Director John Bentley, Director • President and CEO of Africa Oil Corp. • Chairman of Faroe Petroleum p
Slide 8: Senior Management
Senior Management Garrett Soden, President, CEO and Director • Senior Executive and Board Member with the Lundin Group for over a decade • Director of several listed natural resource companies • BSc from London School of Economics and MBA from Columbia Business School Jan Maier, Vice President Explo
Slide 9: Solid Track Record
Solid Track Record Four Basin Opening Discoveries in Africa NGAMIA FIELD JUBILEE & TEN FIELDS 2012 2007 - 2010 300 MMbbl (area believed to hold 750 MMbbl) 1 Bbbl (area believed to hold 1.6 Bbbl) Technical Team of Geologists and Geophysicists • Working together across Africa for ~25 years Ghana • Str
Slide 10: Asset Overview – Three Drill-Ready Prospects
Asset Overview – Three Drill-Ready Prospects Block 11B/12B, offshore South Africa • 4.9% effective interest • Operated by Total SA • Huge resource potential, high chance of success • Currently drilling the Brulpadda Prospect Block 2B, offshore South Africa • 90% participating interest • Operated by
Slide 11: Wood Mackenzie Top-20 Prospects in 2018
Wood Mackenzie Top-20 Prospects in 2018 New Plays and Large Prospects Gjokasen Bautinskaya-1 Lyon Santola-1 Takhi-1 Maria-1 Yaaxtaab-1 Block 10 Aspy RD-1 4118-4-1 Samo-1 Bon Bini-1 Requin Tigre-1 Antelope South-1 Anapai-1 Tucano-1 Cormorant-1 Aru Trough Brulpadda-1AX Slide 11 Africa Energy | Decembe
Slide 12: South Africa Overview
South Africa Overview Attractive Location / Fiscal Terms Active Players Fiscal Terms State Take < 30% Royalty: 0.5-5% Income Tax: 28% Tax benefit from cost uplift After Tax Profit Tax Deductible Costs: Including cost uplift, 200% of exploration and appraisal, 150% of capex and 100% of opex State and
Slide 13: South Africa Block 11B/12B
South Africa Block 11B/12B Huge Resource Potential with High Chance of Success • Five Cretaceous-age fans identified on 2D seismic • Petroleum system proven by nearby oil fields • Significant follow-on potential in success case Asset Summary AEC effective interest 4.9% Total (operator with 45%), Par
Slide 14: South Africa Block 11B/12B
South Africa Block 11B/12B Five Giant Oil Prospects with Seismic Flat Spots Block 11B/12B Prospect Map 1,432m Paddavissie Fairway 3,420m Brulpadda-1AX ~3,850m well location A A’ 5 Paddavissie Prospects Deep Prospects Leads • Direct Hydrocarbon Indicators (DHI) on seismic data: Amplitude Variations w
Slide 15: South Africa Block 2B
South Africa Block 2B Proven Oil Basin • A-J1 oil discovery from 1988 flowed high-quality oil to surface (36° API) • Analogous to Lokichar Basin (Kenya) and Albertine Graben (Uganda) • Near-term low-risk exploration well planned updip (~$20 MM) • Best Estimate Prospective Resources of over 600 MMbbl
Slide 16: South Africa Block 2B
South Africa Block 2B A-J Graben Axial Delta Play Distance (m) Time (ms) • Proposed drilling location will test both Namaqualand and Gazania Prospects • Gazania Prospect up-dip of proven oil discovery (A-J1) • Porosity improvement inferred by seismic inversion work Slide 16 Africa Energy | December
Slide 17: Un-risked Recoverable Oil Resources (MMbbls)
South Africa Block 2B Contingent & Prospective Resources Gross 2C Contingent Best Estimate Prospective Resources A-J Graben Prospect Map Resources 1,000 Northern Graben Un-risked Recoverable Oil Resources (MMbbls) 800 400 MMbbl 600 225 MMbbl 400 A-J1 well Axial Delta Play 37 MMbbl Contingent, 400 MM
Slide 18: Namibia Overview
Namibia Overview Attractive Location / Fiscal Terms History of Oil Industry Namibia is under-explored. Kudu Gas Field discovered in 1974 Mature oil source proven by HRT wells in 2013 attracted return of major oil companies Namibia has two major ports to service the oil industry Recent Country Entran
Slide 19: Namibia PEL 37
Namibia PEL 37 Significant Resource Potential • Four Cretaceous-age fans identified on 3D seismic • Mature source rock proven by nearby HRT wells • Further upside prospectivity defined to the south with 2D seismic Asset Summary AEC effective interest 10% (1) Tullow (operator with 35%), ONGC (30%), P
Slide 20: Namibia PEL 37
Namibia PEL 37 Four Large Submarine Fans PEL 37 Prospect Map 548m 3,855m Cormorant-1 well location Prospects Leads Albatross Cormorant Seagull Gannet North Seagull Gannet South • High amplitude fans overlie mature Albo/Aptian Prospect Prospect Prospect Prospect 293 km2 120 km2 90 km2 273 km2 source
Slide 21: Summary – Platform for Growth
Summary – Platform for Growth Near-Term, High-Impact Exploration Wells • Block 11B/12B - Multi-billion-barrel prospectivity • Block 2B - Oil basin with existing discovery • PEL 37 - Proven play with additional prospectivity Team of Oil Finders with Successful Track Record • Experienced board and sen
Slide 22: Cautionary Statements
Cautionary Statements This presentation has been prepared and issued by and is the sole responsibility of Africa Energy Corp. (the "Company") and its subsidiaries. It comprises the written materials for a presentation to investors and/or industry professionals concerning the Company's business activ
Slide 23: Thank You
Thank You CONTACT DETAILS Investor Relations - Canada Investor Relations - Sweden Sophia Shane Robert Eriksson Email: info@africaenergycorp.com Email: reriksson@rive6.ch Tel: +1 (604) 689-7842 Tel: +46 701 11 26 15 Creating Value Through Oil Exploration in Africa www.africaenergycorp.com
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