Africa Energy Corp. · TSXV:AFE
Africa Energy — Investor Presentation (March 2023)
19 slides from Africa Energy's investor presentation, March 2023
Slide 1: Gas and Condensate Creating Value Through Development in South Africa
AFRICA ENERGY CORP Gas and Condensate Creating Value Through Development inin Oil Exploration South Africa Africa March 2023 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 • 10% interest in Block 11B/12B(1) • Two world-class gas and condensate discoveries • Planning gas condensate development on Block 11B/12B Share Ownership Corporate Snapshot AFE/AEC TSX-V/Fir
Slide 3: South Africa State of Emergency Declared – Energy Crisis
South Africa State of Emergency Declared – Energy Crisis February 9, 2023, South African President Cyril Ramaphosa declared a national "state of disaster" Load Shedding Hours in South Africa over his country's crippling power shortages, saying they posed an existential threat to the economy and soci
Slide 4: 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 4 Africa Energy | March 2023
Slide 5: Potential Domestic Gas Market
Block 11B/12B Potential Domestic Gas Market Focused on domestic solution; FLNG considered an alternative Note: Future gas market potential includes Company estimates. Slide 5 Africa Energy | March 2023
Slide 6: Value Proposition
Block 11B/12B Value Proposition • South Africa solution to current energy crisis • Fiscal terms in South Africa improve value per barrel • TotalEnergies estimates greater than 1Bboe in Paddavissie Fairway • Significant upside in eastern portion of block; oil possible • Current market capitalization
Slide 7: Appendix
Appendix Slide 7 Africa Energy | March 2023
Slide 8: 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 9: 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%), Par
Slide 10: 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 Negotiating gas offtake term
Slide 11: 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 12: 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 13: Huge Block with Running Room
Block 11B/12B Huge Block with 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 Proposed relinquishment ar
Slide 14: Paddavissie Fairway
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 2023
Slide 15: Key to the Energy Transition
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: Transactions More Than Double Effective Interest
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 17: Summary
Summary World-Class Assets • Offshore gas condensate development with TotalEnergies • Discovered resources, de-risked prospects and significant exploration upside Proven Team • Experienced board and senior management • Technical team with substantial exploration success across Africa from Energy Afr
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 - Sweden Robert Eriksson Email: reriksson@rive6.ch Tel: +46 701 11 26 15 Oil and Gas Exploration and Development in South Africa www.africaenergycorp.com Slide 19 Africa Energy | March 2023