Africa Energy Corp. · TSXV:AFE
Africa Energy — Investor Presentation (November 2020)
24 slides from Africa Energy's investor presentation, November 2020
Slide 1: Africa Energy Corp – Creating Value Through Oil Exploration in Africa
AFRICA ENERGY CORP South African Creating ValueOil & Gas Through Exploration Champion Oil Exploration in Africa November 2020 The Odfjell Deepsea Stavanger rig drilled the Brulpadda-1AX discovery in February 2019 and the Luiperd-1X discovery in October 2020 on Block 11B/12B offshore South Africa.
Slide 2: Corporate Profile
Corporate Profile • Independent oil and gas exploration company Asset Footprint • Backed by the Lundin Group • Proven technical team from Energy Africa / Tullow Oil • Brulpadda and Luiperd discoveries on Block 11B/12B • Low-risk exploration well planned on Block 2B Share Ownership Corporate Snapshot
Slide 3: Lundin Group of Companies
Lundin Group of Companies 14 companies combined market cap $18 billion Core shareholder with global footprint Group market cap information shown in CAD as of September 29, 2020. Slide 3 Africa Energy | November 2020
Slide 4: Non-Executive Directors
Non-Executive Directors Adam Lundin, Chairman • President and CEO of Josemaria Resources • Previously Co-Head of the London office for Pareto Securities Ltd. • Director of several Lundin Group companies Keith Hill, Director John Bentley, Director • President and CEO of Africa Oil Corp. • Senior Inde
Slide 5: Senior Management
Senior Management Africa Energy management Garrett Soden, President, CEO and Director aboard Deepsea Stavanger drilling rig. • Senior executive in the Lundin Group for over a decade • Director of several listed natural resource companies Jan Maier, Vice President Exploration • 33 years experience in
Slide 6: Solid Track Record
Solid Track Record Five Basin Opening Discoveries in Africa JUBILEE & TEN FIELDS NGAMIA FIELD Technical Team of Geologists and 2007 - 2010 2012 1 Bbbl 300 MMbbl Geophysicists (area believed to hold 1.6 Bbbl) (area believed to hold 750 MMbbl) • Working together across Africa for ~25 years • Stratigra
Slide 7: Asset Overview
Asset Overview Block 11B/12B • 4.9% effective interest increasing to 10% (1) • Operated by Total SA • Brulpadda and Luiperd discoveries in 2019-2020 • Development studies and commerciality Block 2B • 27.5% participating interest with carried well (2) • Operated by Azinam Limited • Proven oil basin w
Slide 8: South Africa Block 11B/12B
South Africa Block 11B/12B Transactions More Than Double Effective Interest 1. Impact Transaction – Acquisition of Impact’s financial interest in Block Current Corporate Structure 11B/12B for 509.1 million shares 2. Arostyle Transaction – Mutual put/call option, exercisable anytime after Luiperd-1X
Slide 9: 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 10: South Africa Block 11B/12B – Large Discoveries with De-Risked Upside
South Africa Block 11B/12B Large Discoveries with De-Risked Upside • Two major discoveries • Three Paddavissie and Deep Prospects de-risked • Massive acreage position with substantial upside Asset Summary AEC effective interest 4.9% (1) Total (operator with 45%), Partners Qatar Petroleum (25%), Cana
Slide 11: Huge Block with Plenty of Running Room
South Africa Block 11B/12B Huge Block with Plenty of Running Room Block 11B/12B Prospect Map 3 Paddavissie Drill Ready Prospects Oil Field Gas and Condensate Field 2020 2D Seismic (Shearwater) – 7,033 km 2019/2020 3D Seismic (Polarcus/PGS) - ~2,900 km2 • Amplitude Variations with Offset (AVO) confor
Slide 12: Luiperd Gas Condensate Discovery
South Africa Block 11B/12B Luiperd Gas Condensate Discovery Luiperd-1X NNW SSE Mature Source Rock Paddavissie Objective Wet Gas Reservoir Water Zone • 73 meters net gas condensate pay • High productivity anticipated given high net to gross and good quality of reservoirs (to be confirmed by DST) • Ga
Slide 13: Brulpadda Gas Condensate and Oil Discovery
South Africa Block 11B/12B Brulpadda Gas Condensate and Oil Discovery Brulpadda-1AX N S Paddavissie Objective (Primary) • 34 meters net gas condensate pay plus oil pay • High productivity anticipated given high net-to-gross and good quality of reservoirs • Significantly de-risks remaining three 1st
Slide 14: Paddavissie Fairway
South Africa Block 11B/12B Paddavissie Fairway Paddavissie Prospect Deep Prospect Condensate Field Oil Field Source Sequences Slide 14 Africa Energy | November 2020
Slide 15: South Africa Block 2B – Proven Oil Basin
South Africa Block 2B Proven Oil Basin • A-J1 oil discovery in 1988 flowed high-quality oil to surface (36° API) • Near-term low-risk exploration well planned updip from discovery • Analogous to Lokichar Basin (Kenya) and Albertine Graben (Uganda) Asset Summary AEC participating interest 27.5% (1) A
Slide 16: A-J Graben Axial Delta Play
South Africa Block 2B A-J Graben Axial Delta Play • Proposed drilling location will test both Namaqualand and Gazania Prospects • Gazania Prospect updip of proven oil discovery (A-J1) • Porosity improvement inferred by seismic inversion work Slide 16 Africa Energy | November 2020
Slide 17: Contingent & Prospective Resources
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: Summary
Summary Near-Term, High-Impact Exploration • Block 11B/12B – Commercial threshold achieved • Block 2B - Oil basin with existing discovery • PEL 37 - Proven play with additional prospectivity Proven Team • Experienced board and senior management • Technical team with significant exploration success a
Slide 19: Appendix
Appendix Slide 19 Africa Energy | November 2020
Slide 20: 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 21: 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 prospectivity defined to the south with 2D seismic Asset Summary AEC effective interest 14.6% (1) Tullow (operator with 51.15%), Pancontinental
Slide 22: Cretaceous Fan Play with Additional Prospectivity
Namibia PEL 37 Cretaceous Fan Play with Additional Prospectivity (TBD) (TBD) SE NW Cormorant proved the play Prospect-S ~Well indicates migration ~1,000m above of heavy hydrocarbons Source Rock Osprey Cormorant-1 Albatross ~400m above ~300m above Source Rock ~700m above Source Rock Source Rock • Cor
Slide 23: 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 24: 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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