Africa Energy Corp. · TSXV:AFE
Africa Energy — Investor Presentation (June 2023)
19 slides from Africa Energy's investor presentation, June 2023
Slide 1: Creating Value Through Exploration and Development
AFRICA ENERGY AFRICA ENERGY CORP Creating Value Exploration and Through Development Oil in Exploration South Africa in Africa 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 • Two large gas condensate discoveries on Block 11B/12B offshore South Africa • Nearby gas infrastructure and demand in Mossel Bay • Planning gas condensate development with TotalEnergies Share Ownership Corporate Snapsh
Slide 3: South Africa: Attractive Location and Fiscal Terms
South Africa Attractive Location and Fiscal Terms Active Players Fiscal Terms State Take < 30% Royalty: 0.5-5% Income Tax: 27% 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 Black
Slide 4: Block 11B/12B: Large Discoveries with De-Risked Upside
Block 11B/12B Large Discoveries with De-Risked Upside • Two major gas condensate discoveries • Massive acreage position with significant upside • Production Right application submitted • Negotiating gas offtake terms Asset Summary AEC effective interest 4.9%(1) TotalEnergies (operator with 45%), Qat
Slide 5: Luiperd Gas Condensate Discovery
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 Paddavissie Prospect
Slide 6: Proposed Fast-Track Development
Block 11B/12B Proposed Fast-Track Development FA Platform in Block 9. Planning Luiperd Early Production System (EPS) with existing nearby infrastructure • Production Right (PR) application submitted in September 2022 • PR approval expected 12-18 months after submission (Q1 2024) • Negotiating gas of
Slide 7: Potential Domestic Gas Market
Block 11B/12B Potential Domestic Gas Market Full field development expected as domestic gas market expands Note: Future gas market potential includes Company estimates. Slide 7 Africa Energy | June 2023
Slide 8: Huge Block with Running Room
Block 11B/12B Huge Block with Running Room Block 11B/12B Prospect Map 3 Paddavissie Drill Ready Prospects • Amplitude Variations with Oil Field Offset (AVO) conformance Gas - Condensate Field Leads to structure and flat spots Greater Paddavissie Prospects on Paddavissie Prospects Prospects 2020 2D S
Slide 9: Value Proposition
Block 11B/12B Value Proposition • Domestic solution to energy crisis in South Africa • Attractive fiscal terms improve value per barrel • Luiperd and Brulpadda discoveries contain at least 760 million barrels of oil equivalent(1) • Three de-risked prospects remain – TotalEnergies estimates >1 Bboe a
Slide 10: Summary
Summary World-Class Assets • Offshore gas condensate development with TotalEnergies • Discovered resources, de-risked prospects and significant exploration upside Strong Fundamentals • Nearby infrastructure with existing pipelines to shore • Gas demand in Mossel Bay with existing gas-to-liquids refi
Slide 11: Appendix
Appendix Slide 11 Africa Energy | June 2023
Slide 12: South Africa Energy Crisis
South Africa Energy Crisis On February 9, 2023, South African President Load Shedding Hours in South Africa Ramaphosa declared a national "state of disaster“ due to crippling power shortages. • Economic cost of load shedding was $1.3 billion in 2022 • At least 250 days of load shedding expected in 2
Slide 13: Energy Crisis Solution
South Africa Energy Crisis Solution Eskom: Gas is the optimal solution from a technical, economic and environmental perspective Source: Eskom CEO presentation; Southern Africa Oil & Gas Conference, September 2022. Slide 13 Africa Energy | June 2023
Slide 14: Key to the Energy Transition
Block 11B/12B Key to the Energy Transition • South Africa is a carbon-intensive economy and contributes approximately 1% of annual global South Africa Power Generation Mix greenhouse gas (GHG) emissions NUCLEAR • Eskom currently relies on coal-fired power stations to produce approximately 90% of its
Slide 15: Transactions More Than Double Effective Interest
Block 11B/12B Transactions More Than Double Effective Interest 1. Impact Transaction – Acquisition of Pro Forma Share Ownership Corporate Structure Impact’s financial interest in Block Africa 11B/12B for 509.1 million shares Retail & Oil Corp. completed in November 2020 Institutional 19%** 32% Loan
Slide 16: 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 16 Africa Energy | June 2023
Slide 17: 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 Pad
Slide 18: 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 19: Thank You
Thank You CONTACT DETAILS Investor Relations Jeromie Kufflick Email: info@africaenergycorp.com Tel: +1 (604) 689-7842 Oil and Gas Exploration and Development in South Africa www.africaenergycorp.com Africa Energy | June 2023