Africa Energy Corp. · TSXV:AFE
Africa Energy — Investor Presentation (September 2020)
27 slides from Africa Energy's investor presentation, September 2020
Slide 1: Near-term, High-Impact Creating Value Through Exploration
AFRICA ENERGY CORP Near-term, High-Impact Creating Value Through Exploration Oil Exploration in Africa September 2020 The Odfjell Deepsea Stavanger rig drilled the Brulpadda-1AX discovery in February 2019 and returned to South Africa in August 2020 to drill up to three more wells on Block 11B/12B.
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 • Major discovery with Total on Block 11B/12B in 2019 • Currently drilling up to three more wells with Total • Pending transactions to
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 (1) Cretaceous 0% 20% 40% 60% 80% 100% Rifts South Africa (2) Guinea Bissau State Take Mo
Slide 4: Lundin Group of Companies
Lundin Group of Companies 14 companies combined market cap $21 billion Core shareholder with global footprint Group market cap information shown in CAD as of August 14, 2020. Slide 4 Africa Energy | September 2020
Slide 5: Non-Executive Directors
Non-Executive Directors Adam Lundin, Chairman Ian Gibbs, Director • President and CEO of Josemaria • CFO of Josemaria Resources Resources • Previously CFO of Africa Oil Corp. • Previously Co-Head of the London • Director of several Lundin Group office for Pareto Securities Ltd. companies • Director
Slide 6: Senior Management
Senior Management Africa Energy management Garrett Soden, President, CEO and Director 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: 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 8: Asset Overview
Asset Overview Block 11B/12B, offshore South Africa • 4.9% effective interest increasing to 10% (1) • Operated by Total SA • Brulpadda discovery in 2019, over 1 Bboe potential (2) • Currently drilling Luiperd-1X exploration well Block 2B, offshore South Africa • 27.5% participating interest with car
Slide 9: 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 Current Corporate Structure 11B/12B for 509.1 million shares 2. Arostyle Transaction – Mutual put/call option, exercisable anytime after Luiperd-1X
Slide 10: Wood Mackenzie Top-20 Prospects in 2020
Wood Mackenzie Top-20 Prospects in 2020 Stangnestind Mitquq -1 Blocks 6/7/7/11 4118-5-1 Shafag Asiman-1 OAZE-1 South Platte Byblos-1 Tanager-1 Polok-1 Walker-1 Udo Block 52 Shwe Nadi-1 Berimbau-Maraca Marina Venus Saturno Luiperd Tawhaki Slide 10 Africa Energy | September 2020
Slide 11: 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 12: Block 11B/12B: Large Discovery with De-Risked Upside
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% (1) Total (operator with 45%), Partners Qatar Petro
Slide 13: Block 11B/12B: Gas Condensate and Light Oil Discovered
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 1st Paddavissie Pros
Slide 14: Block 11B/12B: Huge Block with Plenty of Running Room
South Africa Block 11B/12B Huge Block with Plenty of Running Room Block 11B/12B Prospect Map 4 Paddavissie Drill Ready Prospects Paddavissie Leads Post Rift Prospects and Leads Syn-Rift Leads Oil Field Condensate Field 2020 2D Seismic (Shearwater) – 7,033 km 2019/2020 3D Seismic (Polarcus/PGS) - ~2,
Slide 15: Block 11B/12B: 2019/2020 Seismic Survey Results Very Encouraging
South Africa Block 11B/12B 2019/2020 Seismic Survey Results Very Encouraging Paddavissie Fairway Prospect Map • Potential northern extension to Luiperd identified • 3D validates DHIs and thick reservoir development, confirming large resource potential in Paddavissie • Kloofpadda play trend ~400 km2
Slide 16: Block 11B/12B: Follow-On Drilling Across Paddavissie Fairway
South Africa Block 11B/12B Follow-On Drilling Across Paddavissie Fairway 4 Paddavissie Prospects Deep Prospect Condensate Field Oil Field Source Sequences Slide 16 Africa Energy | September 2020
Slide 17: Block 2B: Proven Oil Basin
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 27.5% (1) A
Slide 18: Block 2B: A-J Graben Axial Delta Play
South Africa Block 2B A-J Graben Axial Delta Play • Proposed drilling location will test both Namaqualand and Gazania Prospects • Gazania Prospect updip of proven oil discovery (A-J1) • Porosity improvement inferred by seismic inversion work Slide 18 Africa Energy | September 2020
Slide 19: Block 2B: 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: Near-Term Catalysts
Near-Term Catalysts Strongly Positioned to Deliver Shareholder Value Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 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 Blo
Slide 21: Summary
Summary 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 Proven Team • Experienced board and senior management • Technical team with significant exploration su
Slide 22: Appendix
Appendix Slide 22 Africa Energy | September 2020
Slide 23: 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 24: Namibia PEL 37: Significant Resource Potential
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 50%), Pancontinental Par
Slide 25: Namibia PEL 37: Cretaceous Fan Play with Additional Prospectivity
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 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 Exploration in Africa www.africaenergycorp.com
Africa Energy — Investor Presentation (September 2020) on 6ix