Africa Energy Corp. · TSXV:AFE
Africa Energy — Investor Presentation (November 2019)
21 slides from Africa Energy's investor presentation, November 2019
Slide 1: Creating Large Value Through Oil and Gas Discovery with More to Come
AFRICA ENERGY CORP Large OilValue Creating and Gas Discovery Through with More to Come Oil Exploration in Africa November 2019 The Odfjell Deepsea Stavanger rig drilled the Brulpadda-1AX discovery in February 2019 and will return to South Africa in Q1 2020 to drill up to three more wells on Block 11
Slide 2: Corporate Profile
Corporate Profile Asset Footprint • Independent oil and gas exploration company • Backed by the Lundin Group • Proven technical team from Energy Africa / Tullow Oil • Recent major discovery with Total offshore South Africa • Near-term, high-impact exploration drilling on Block 11B/12B Share Ownershi
Slide 3: Exploration in Africa
Exploration in Africa • Frontier regions in Africa Geological Basins • Countries with attractive commercial terms • Offshore, non-operated minority interests MSGB Basin Net State Take & Participation by Country Cretaceous Rifts 0% 20% 40% 60% 80% 100% South Africa Guinea Bissau State Take Morocco St
Slide 4: Lundin Group of Companies
Lundin Group of Companies 13 companies combined market cap $21 billion Core shareholder with global footprint Group market cap information shown in CAD as of September 3, 2019. Slide 4 Africa Energy | November 2019
Slide 5: Non-Executive Directors
Non-Executive Directors Ashley Heppenstall, Chairman • Advisor to the Lundin family • Previously President and CEO of Lundin Petroleum AB • Director of several Lundin Group companies Keith Hill, Director John Bentley, Director • President and CEO of Africa Oil Corp. • Senior Independent Director for
Slide 6: Senior Management
Senior Management Garrett Soden, President, CEO and Director Africa Energy management aboard Deepsea Stavanger drilling rig. • 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 M
Slide 7: Asset Overview
Asset Overview Block 11B/12B, offshore South Africa • 4.9% effective interest • Operated by Total SA • Discovery with over 1 Bboe potential* • Multi-well drilling campaign in Q1 2020 Block 2B, offshore South Africa • 90% participating interest • Operated by Africa Energy • Proven oil basin with exis
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% 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 9: South Africa Block 11B/12B
South Africa Block 11B/12B Large Discovery with De-Risked Upside • Major condensate and light oil discovery • Four Paddavissie and Deep Prospects de-risked • Massive acreage position with substantial upside Asset Summary AEC effective interest 4.9% Total (operator with 45%), Partners Qatar Petroleum
Slide 10: South Africa Block 11B/12B
South Africa Block 11B/12B Gas Condensate and Light Oil Discovered Brulpadda-1AX N S Paddavissie Objective (Primary) • 34 meters of gas condensate pay + oil pay • High productivity anticipated given high net to gross and quality of reservoirs • Significantly de-risks remaining 4 Paddavissie Prospect
Slide 11: South Africa Block 11B/12B
South Africa Block 11B/12B Huge Block with Plenty of Running Room Block 11B/12B Prospect Map 4 Paddavissie Prospects Deep Prospect Leads Oil Field Total field resources are Condensate Field estimated to be between 2005 2D Seismic (Fugro) 2.2 and 3.2 Bboe 2001 2D Seismic (Spectrum) 2019 3D Seismic (P
Slide 12: South Africa Block 11B/12B
South Africa Block 11B/12B Follow-On Drilling Across Paddavissie Fairway Luiperd-1 Blaasop-1 Q1-2020 Q2-2020 4 Paddavissie Prospects Deep Prospect Condensate Field Oil Field Source Sequences Slide 12 Africa Energy | November 2019
Slide 13: 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) • Near-term low-risk exploration well planned updip from discovery • Analogous to Lokichar Basin (Kenya) and Albertine Graben (Uganda) Asset Summary AEC participating interest 90% (operat
Slide 14: 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 14 Africa Energy | November 2019
Slide 15: 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 16: 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 10% (1) Tullow (operator with 35%), ONGC (30%), Partners
Slide 17: Namibia PEL 37
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 18: Near-Term Potential Catalysts
Near-Term Potential Catalysts Strongly Positioned to Deliver Shareholder Value Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Block Brulpadda-1AX Discovery 11B/12B Block 3D Seismic (Phase 1), Brulpadda Core and PVT Analysis 11B/12B Block 11B/12B 3D Seismic (Phase 2) and 2D Seismic B
Slide 19: Summary – Platform for Growth
Summary – Platform for Growth Near-Term, High-Impact Exploration • Block 11B/12B - Discovery with over 1 Bboe potential • 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 senior
Slide 20: 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 21: 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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