Africa Energy Corp. · TSXV:AFE
Africa Energy — Investor Presentation (April 2018)
25 slides from Africa Energy's investor presentation, April 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 April 2018 Ocean Rig Poseidon will drill the Cormorant Prospect on PEL 37 in Namibia in September 2018.
Slide 2: Corporate Profile
Corporate Profile Asset Footprint • Independent oil exploration company listed on TSX Venture Exchange • Focused on under-explored regions in Africa • Backed by the Lundin Group • Proven technical team from Tullow Oil / Energy Africa • Three near-term high-impact exploration assets* • Reviewing addi
Slide 3: Building a Regional African Champion
Building a Regional African Champion MSGB • Focused on frontier regions in Africa Basin • Building high-quality exploration portfolio of non- operated minority interests • Looking to acquire producing assets long-term Cretaceous Rifts • Targeting stable countries with solid commercial terms Net Stat
Slide 4: 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 Slide 4 Africa Energy | April 2018
Slide 5: 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 6: Senior Management
Senior Management Garrett Soden, President, CEO and Director • Senior Executive and Board Member with the Lundin Group for the last decade • Director of several listed natural resource companies • BSc from London School of Economics and MBA from Columbia Business School Jan Maier, Vice President Exp
Slide 7: 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 8: 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 March 31, 2018. Slide 8 Africa Energy | April 2018
Slide 9: Lundin Group in Africa
Lundin Group in Africa Lundin investment in Africa exceeds $5 billion Slide 9 Africa Energy | April 2018
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 | April 2
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 most recent HRT wells in 2014; attracted return of major oil companies Namibia has two major ports to service the oil indu
Slide 13: Namibia PEL 37
Namibia PEL 37 Significant Resource Potential • Prospectivity of Walvis Basin confirmed by ExxonMobil entry to PEL 82 following Liza discovery in Guyana • Four Cretaceous-age fans defined with anomalously soft amplitude response • Proven source rock in the Aptian sequence in both Murombe-1 and Winga
Slide 14: Namibia PEL 37: Four Large Submarine Fans
Namibia PEL 37 Four Large Submarine Fans • Multiple Cretaceous-aged fans with anomalously soft amplitude response have been deposited in PEL 37 • Amplitude events overlay the proven mature Albo/Aptian source rock in the basin’s depo-centre • Fans deposited in a westerly direction and are all stratig
Slide 15: South Africa Overview
South Africa Overview Attractive Location / Fiscal Terms Regionally 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 ope
Slide 16: South Africa Overview: Positive Political Momentum
South Africa Overview Positive Political Momentum Feb 15, 2018 Feb 26, 2018 Mar 23, 2018 Second Quarter 2018 Dec 18, 2017 Zuma resigns and Resource Minister Zwane Moody’s reaffirms South Africa Ramaphosa target to enact Cyril Ramaphosa Ramaphosa appointed as replaced by Gwede Mantashe, investment-gr
Slide 17: South Africa Block 11B/12B
South Africa Block 11B/12B Huge Resource Potential with High Chance of Success • Multi-billion-barrel prospectivity (2) • High likelihood of oil success: - Clear amplitude anomalies with excellent structural conformance and flat spots - Effective oil petroleum system proven by nearby Oribi, Oryx and
Slide 18: 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 • Direct Hydrocarbon Indicators (DHI) on seismic data • All five Paddavissie Fairway prospects have Amplitude Variations with Offset Paddavisse Fairway (AVO) and conformance to structure suggesting
Slide 19: South Africa Block 2B
South Africa Block 2B Proven Oil Basin • Farmout process attracting interest from majors • Near-term low-risk exploration well planned (~$23 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 20: 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 the Namaqualand and Gazania Prospects • Gazania Prospect is up-dip of proven oil discovery (A-J1) • Porosity improvement inferred by seismic inversion work Slide 20 Africa Energy | Ap
Slide 21: South Africa 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 Axial Delta Play A-J1 Well 37 MMbbl Contingent, 400 MM
Slide 22: 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 Dual Listing Block 11B/12B Block 2B Farmout Spud Cormorant Spud Brulpadda Spud Gazania Success Appraisal Company Deal Execute Considering Close Farmout Stockhol
Slide 23: Summary – Platform for Growth
Summary – Platform for Growth Near-Term, High-Impact Exploration Wells • PEL 37 - Large upside potential with over a billion barrels • Block 2B - Proven oil basin with existing discovery • Block 11B/12B - Multi-billion-barrel prospectivity with high chance of success Team of Proven Oil Finders • Exp
Slide 24: 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 25: Thank You
Thank You CONTACT DETAILS Sophia Shane Investor Relations Email: info@africaenergycorp.com Tel: +1 (604) 689-7842 Creating Value Through Oil Exploration in Africa www.africaenergycorp.com