Africa Energy Corp. · TSXV:AFE
Africa Energy — Investor Presentation (March 2022)
27 slides from Africa Energy's investor presentation, March 2022
Slide 1: Creating Value through Oil Exploration in Africa
AFRICA ENERGY CORP Exploration andThrough Creating Value Development in OilSouth Africa in Africa Exploration March 2022 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 • High-impact oil exploration well on Block 2B in 2022 • Two large gas condensate discoveries on Block 11B/12B with potential fast-trac
Slide 3: Lundin Group of Companies
Lundin Group of Companies 12 companies combined market cap $30 billion Core shareholder with global footprint Group market cap information shown in CAD as of February 23, 2022. Slide 3 Africa Energy | March 2022
Slide 4: Non-Executive Directors
Non-Executive Directors William Lundin, Chairman • Chief Operating Officer of International Petroleum Corp. • Previously served in production operation departments at International Petroleum Corp. and BlackPearl Resources Inc. • Director of ShaMaran Petroleum Corp. and the Lundin Foundation Keith Hi
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 Geophysicists 2007 - 2010 2012 1 Bbbl 300 MMbbl • Working together across Africa for ~25 years (area believed to hold 1.6 Bbbl) (area believed to hold 750 MMbbl) • Stratigra
Slide 7: Asset Overview
Asset Overview Block 11B/12B • 4.9% effective interest increasing to 10% (1) • Operated by TotalEnergies • Brulpadda and Luiperd discoveries in 2019-2020 • Development studies and gas commercialization • Production Right application expected by September 2022 Block 2B • 27.5% participating interest
Slide 8: South Africa Overview
South Africa Overview Attractive Location / Fiscal Terms Active Players Fiscal Terms State Take < 30% Royalty: 0.5-5% Income Tax: 28% (27% effective in 2022) Tax benefit from cost uplift After Tax Profit Tax Deductible Costs: Including cost uplift, 200% of exploration and appraisal, 150% of capex an
Slide 9: South Africa Block 11B/12B
South Africa Block 11B/12B Large Discoveries with De-Risked Upside • Two major gas condensate discoveries • Massive acreage position with substantial upside • Development studies and gas commercialization • Production Right application expected by Sept. 2022 Asset Summary AEC effective interest 4.9%
Slide 10: South Africa Block 11B/12B
South Africa Block 11B/12B EPS Development Progressing FA Platform in Block 9. • Assessing Early Production System (EPS) with existing nearby infrastructure • Preparing Field Development Plan, Environmental Application and Production Right Application for submission by September 2022 • Final Investm
Slide 11: South Africa Block 11B/12B
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 - Condensate Field Leads Greater Paddavissie Prospects Prospects 2020 2D Seismic (Shearwater) – 7,033 km 2019/2020 3D Seismic (Polarcus/PGS) - ~2,900 km2 • A
Slide 12: South Africa Block 11B/12B
South Africa Block 11B/12B Luiperd Gas Condensate Discovery Luiperd-1X NNW SSE Paddavissie Objective Mature Source Rock Gas-Condensate Reservoir Water Leg • 73 meters net gas condensate pay • Gas down to bottom of reservoir • Possible oil rim down-dip • Significantly de-risks remaining three Paddavi
Slide 13: South Africa Block 11B/12B
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: South Africa Block 11B/12B
South Africa Block 11B/12B Paddavissie Fairway 1,767m 3,203m TD 3,371m Paddavissie Prospect Deep Prospect Gas - Condensate Field Oil Field Source Sequences Slide 14 Africa Energy | March 2022
Slide 15: South Africa Block 11B/12B
South Africa Block 11B/12B Key to the Energy Transition • South Africa is a carbon-intensive economy and contributes approximately South Africa Power Generation Mix 1% of annual global greenhouse gas (GHG) emissions NUCLEAR • Eskom currently relies on coal-fired power stations to produce 5.4% approx
Slide 16: South Africa Block 2B
South Africa Block 2B Proven Oil Basin • A-J1 oil discovery in 1988 flowed high-quality oil to surface (36° API) • High-impact exploration well planned up-dip from discovery • Analogous to Lokichar Basin (Kenya) and Albertine Graben (Uganda) Asset Summary AEC participating interest 27.5% Eco Atlanti
Slide 17: South Africa Block 2B
South Africa Block 2B Highly Prospective Orange Basin Basin Highlights • Chevron Kudu gas discovery in 1974 • Soekor Ibhubesi gas discovery in 1986 • Soekor A-J1 oil discovery on Block 2B in 1988 • Total Venus and Shell Graff oil discoveries in 2022 • Gazania-1 drilling on Block 2B by October 2022 I
Slide 18: South Africa Block 2B
South Africa Block 2B A-J Graben Axial Delta Play • 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 18 Africa Energy | March 2022
Slide 19: 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 20: Summary
Summary World-Class Assets • Block 11B/12B – Planning gas condensate development • Block 2B – High-impact oil exploration well drilling in 2022 • PEL 37 – Proven play in exploration hotspot Proven Team • Experienced board and senior management • Technical team with significant exploration success ac
Slide 21: Appendix
Appendix Slide 21 Africa Energy | March 2022
Slide 22: 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 11B/12B Corporate Structure for 509.1 million shares completed in November 2020 2. Arostyle Transaction – Mutual put/call option to transfer Main St
Slide 23: Namibia Overview
Namibia Overview Attractive Location / Fiscal Terms History of Oil Industry Chevron Kudu gas discovery in 1974. Mature oil source proven by HRT wells in 2013. Total Venus and Shell Graff large oil discoveries in 2022. Recent Country Entrants Fiscal Terms State Take < 50% Royalty: 5% Income Tax: 35%
Slide 24: 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 25: Namibia PEL
Namibia PEL 37 Cretaceous Fan Play with Additional Prospectivity (TBD) P (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 • C
Slide 26: 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 27: 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 and Gas Exploration in Africa www.africaenergycorp.com Sli