Africa Energy Corp. · TSXV:AFE
Africa Energy — Investor Presentation (August 2018)
24 slides from Africa Energy's investor presentation, August 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 August 2018 Ocean Rig Poseidon will drill the Cormorant Prospect on PEL 37 in Namibia in September 2018.
Slide 2: Corporate Profile
Corporate Profile • Independent oil exploration company Asset Footprint • Listed on TSX Venture and Nasdaq First North Stockholm • Focused on under-explored regions in Africa • Backed by Lundin Group • Proven technical team from Tullow Oil / Energy Africa • Three near-term high-impact exploration as
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 | August 2018
Slide 4: Building a Regional African Champion
Building a Regional African Champion • Focused on frontier regions in Africa New Venture Focus Areas • Building high-quality exploration portfolio of non- operated minority interests MSGB Basin • May look to acquire producing assets long-term • Targeting stable countries with solid commercial terms
Slide 5: Lundin Group of Companies
Lundin Group of Companies 13 companies Combined market cap $24 billion Core shareholder with global footprint Group market cap information shown in CAD as of June 30, 2018. Slide 5 Africa Energy | August 2018
Slide 6: Lundin Group in Africa
Lundin Group in Africa Lundin investment in Africa exceeds $5 billion Slide 6 Africa Energy | August 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: Technical Team's Track Record
Technical Team’s Track Record Four Basin Opening Discoveries in Africa NGAMIA FIELD JUBILEE & TEN FIELDS 2012 Stratigraphic Trap Play Type: 2007 - 2010 300 MMbbl (area believed to hold 750 MMbbl) 1 Bbbl • Heinz Pferdekamper played major technical role in (area believed to hold 1.6 Bbbl) Jubilee, TEN
Slide 10: Asset Overview – Three Drill-Ready Prospects
Asset Overview – Three Drill-Ready Prospects PEL 37, offshore Namibia • 10% effective interest • Operated by Tullow Oil • Significant resource potential • Drilling of Cormorant Prospect planned September 1, 2018 Block 2B, offshore South Africa • 90% participating interest • Operated by Africa Energy
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 | August
Slide 12: Namibia Overview
Namibia Overview Attractive Location / Fiscal Terms History of Oil Industry Namibia is under-explored. Kudu Gas Field discovered in 1974 Good quality 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
Slide 13: Namibia PEL 37
Namibia PEL 37 Significant Resource Potential • Four Cretaceous-age fans identified on 3D seismic • Source rock proven by nearby HRT wells • Best Estimate Prospective Resources of 915 MMbbl (2) • Significant follow-on potential in Cormorant success case • Further upside prospectivity defined to the
Slide 14: Namibia PEL 37: Four Large Submarine Fans
Namibia PEL 37 Four Large Submarine Fans PEL 37 Prospect Map 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 formations N
Slide 15: 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 16: 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 • Multi-billion-barrel prospectivity (2) • High likelihood of oil success • Significant follow-on potential in Brulpadda s
Slide 17: South Africa Block 11B/12B: Five Giant Oil Prospects
South Africa Block 11B/12B Five Giant Oil Prospects with Seismic Flat Spots Block 11B/12B Prospect Map Paddavissie Fairway Brulpadda-1AX well location A A’ 5 Paddavissie Prospects Deep Prospects Leads • Direct Hydrocarbon Indicators (DHI) on seismic data: Amplitude Variations with Offset (AVO) confo
Slide 18: South Africa Block 2B
South Africa Block 2B Proven Oil Basin • Farmout process attracting interest from majors • Near-term low-risk exploration well planned (~$20 MM) • A-J1 oil discovery from 1988 flowed high-quality oil to surface (36° API) • Analogous to Lokichar Basin (Kenya) and Albertine Graben (Uganda) • Best Esti
Slide 19: South Africa Block 2B: A-J Graben Axial Delta Play
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 19 Africa Energy | August 20
Slide 20: 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 21: Near-Term Potential Catalysts
Near-Term Potential Catalysts Strongly Positioned to Deliver Shareholder Value Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 2020 Equity Raise & Listing Block 11B/12B Block 2B Farmout Spud Cormorant Spud Brulpadda Spud Gazania Success Appraisal Raised $45m Deal with Secondary Closing Farmo
Slide 22: Summary – Platform for Growth
Summary – Platform for Growth Near-Term, High-Impact Exploration Wells • PEL 37 - Potential upside over a billion barrels • Block 11B/12B - Multi-billion-barrel prospectivity • Block 2B - Proven oil basin with existing discovery Team of Proven Oil Finders • Experienced board and senior management •
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