Africa Energy Corp. · TSXV:AFE
Africa Energy — Pareto Securities Oslo Conference 2022
28 slides from Africa Energy's conference presentation, September 2022
Slide 1: Creating Value through Oil Exploration in Africa
AFRICA ENERGY CORP Exploration andThrough Creating Value Development in OilSouth Africa in Africa Exploration September 2022 The Island Innovator semi-submersible rig will spud the Gazania-1 oil exploration well on Block 2B offshore South Africa by the end of September 2022.
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 • Drilling high-impact oil exploration well on Block 2B • Planning gas condensate development on Block 11B/12B Share Ownership Corporat
Slide 3: Near-Term Catalysts
Near-Term Catalysts Q1 2022 Q2 2022 Q3 2022 Q4 2022 Present time BLOCK 2B Island Drilling Rig Drilling Rig Contract Mobilization Results Eco Atlantic Gazania-1 License Expiry / $20 million Escrow Spud Production Right Application BLOCK Production 11B/12B Gas Offtake Right Grant Terms License Expiry
Slide 4: 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 5: 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 substantial upside • Production Right application submitted • Negotiating Heads of Agreement on gas offtake terms Asset Summary AEC effective interest 4.9%(1) TotalEnergies (o
Slide 6: Block 11B/12B: 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 7: Block 11B/12B: 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 • Final Investment Decision
Slide 8: Block 11B/12B: 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 8 Africa Energy | September 2022
Slide 9: Block 11B/12B: Huge Block with Plenty of Running Room
Block 11B/12B Huge Block with Plenty of 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 relinqu
Slide 10: Block 2B: Orange Basin – Exploration Hotspot
Block 2B Orange Basin – Exploration Hotspot BASIN HIGHLIGHTS 1974 - Chevron Kudu gas discovery 1986 - Soekor Ibhubesi gas discovery 1988 - Soekor A-J1 oil discovery on Block 2B 2022 - Total Venus and Shell Graff oil discoveries September 2022 Gazania-1 spud on Block 2B Slide 10 Africa Energy | Septe
Slide 11: Global High-Impact Wells in 2022
Global High-Impact Wells in 2022 Theta West 1 Copernicus Edinburgh Zhenis 1 Alphee 1 Cronos 1 Block 9 1 Eratosthenes 1 Soupia 1 Kuwait offshore 2021 1 Niamou 1 Mersing 1 Cutthroat 1 Jaca 1 Marolo 1 1-RJS-759-RJS Mlima 1 Rencong 1X 1-RJS-758D Seal 1 Tigre 1 Timpan 1 Graff 1 Erregulla South 1 Venus 1
Slide 12: Block 2B: Proven Oil Basin
Block 2B Proven Oil Basin • A-J1 oil discovery in 1988 flowed high-quality oil to surface (36° API) • High-impact oil exploration well planned up-dip from discovery • Analogous to Lokichar Basin (Kenya) and Albertine Graben (Uganda) Asset Summary AEC participating interest 27.5% Eco Atlantic Oil & G
Slide 13: Block 2B: Drilling Up-Dip from Proven Oil Discovery
Block 2B Drilling Up-Dip from Proven Oil Discovery Drilling location will test both Namaqualand and Gazania Prospects Slide 13 Africa Energy | September 2022
Slide 14: Block 2B: Contingent and Prospective Resources
Block 2B Contingent and 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 MMbbl 186 MMb
Slide 15: Summary
Summary World-Class Assets • Block 11B/12B – Planning gas condensate development • Block 2B – Drilling high-impact oil exploration well • PEL 37 – Applying for new Exploration License Proven Team • Experienced board and senior management • Technical team with significant exploration success across A
Slide 16: Appendix
Appendix Slide 16 Africa Energy | September 2022
Slide 17: Lundin Group of Companies
Lundin Group of Companies 10 companies combined market cap $14 billion Core shareholder with global footprint Group market cap information shown in CAD as of September 2, 2022. Slide 17 Africa Energy | September 2022
Slide 18: Non-Executive Directors
Non-Executive Directors William Lundin, Chairman • Chief Operating Officer of International Petroleum Corp. • Previously served in production operation departments at International Petroleum Corp. and BlackPearl Resources Inc. • Director of ShaMaran Petroleum Corp. and the Lundin Foundation Keith Hi
Slide 19: Senior Management
Senior Management Africa Energy management Garrett Soden, President, CEO and Director aboard Deepsea Stavanger drilling rig. • Senior executive in the Lundin Group for over a decade • Director of several listed natural resource companies Jan Maier, Vice President Exploration • 33 years experience in
Slide 20: 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 21: Asset Overview
Asset Overview Block 11B/12B • 4.9% effective interest increasing to 10%(1) • Operated by TotalEnergies • Brulpadda and Luiperd discoveries in 2019-2020 • Production Right application submitted • Negotiating Heads of Agreement on gas offtake terms Block 2B • 27.5% participating interest with carried
Slide 22: South Africa Block 11B/12B: 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 23: 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 24: 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 24 Africa Energy | September 2022
Slide 25: 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 26: Highly Prospective Orange Basin
South Africa Block 2B Highly Prospective Orange Basin Emerging Oil Basin • Prior to 2022, only modest oil and gas discoveries were made in the shallow water Orange Basin • Major light oil and associated gas discovered in the recent deep- water exploration drilling (Venus and Graff) • Upcoming Gazani
Slide 27: 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 28: 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 and Gas Exploration in Africa www.africaenergycorp.com Sli
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