Africa Energy Corp. · TSXV:AFE
Africa Energy — Investor Presentation (March 2019)
23 slides from Africa Energy's investor presentation, March 2019
Slide 1: Significant Discovery with Low-Risk Upside
AFRICA ENERGY CORP Significant Discovery Creating Value Through with Low-Risk Upside Oil Exploration in Africa March 2019 The Odfjell Deepsea Stavanger that drilled the Brulpadda-1AX discovery on Block 11B/12B in South Africa.
Slide 2: Corporate Profile
Corporate Profile • Independent oil and gas exploration company Asset Footprint • Focused on under-explored regions in Africa • Backed by Lundin Group • Proven technical team from Energy Africa / Tullow Oil • Near-term high-impact exploration assets • Recent major discovery offshore South Africa Sha
Slide 3: Building an African Champion
Building an African Champion • Focused on frontier regions in Africa New Venture Focus Areas • Prefer offshore, non-operated minority interests MSGB • Targeting stable countries with good commercial terms Basin Net State Take & Participation by Country Cretaceous Rifts 0% 20% 40% 60% 80% 100% South
Slide 4: Lundin Group of Companies
Lundin Group of Companies 12 companies combined market cap $19 billion Core shareholder with global footprint Group market cap information shown in CAD as of December 31, 2018. Slide 4 Africa Energy | March 2019
Slide 5: Lundin Group in Africa
Lundin Group in Africa Lundin investment in Africa exceeds $5 billion Slide 5 Africa Energy | March 2019
Slide 6: 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. • Senior Independent Director f
Slide 7: Senior Management
Senior Management Garrett Soden, President, CEO and Director • 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 MBA from Columbia Business School Jan Maier, Vice President Explo
Slide 8: 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 9: Asset Overview
Asset Overview Block 11B/12B, offshore South Africa • 4.9% effective interest • Operated by Total SA • 1 Bboe discovered resources* • Low-risk upside with large prospects to drill Block 2B, offshore South Africa • 90% participating interest • Operated by Africa Energy • Proven oil basin with existin
Slide 10: 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 Total Sta
Slide 11: South Africa Block 11B/12B
South Africa Block 11B/12B Significant Discovery with Low-Risk 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 Petr
Slide 12: South Africa Block 11B/12B
South Africa Block 11B/12B Gas Condensate and Light Oil Discovered N S Paddavissie Objective (1st - 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 Prospects • Ampl
Slide 13: 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 2005 2D Seismic (Fugro) 2001 2D Seismic (Spectrum) • Running room on extremely large acreage position • High chance of success at remaining 4 Paddavissie
Slide 14: South Africa Block 11B/12B
South Africa Block 11B/12B Substantial Follow-On Potential Across Paddavissie Fairway 4 Paddavissie Prospects Deep Prospect Condensate Field Oil Field Source Sequences Slide 14 Africa Energy | March 2019
Slide 15: South Africa Block 11B/12B
South Africa Block 11B/12B Why is Gas Condensate Valuable? • One of the lightest and most valuable crude oils • Trades at a premium to Brent • Produces products like petrol, jet fuel, diesel and heating fuels • Also used to produce synthetic materials CONDENSATE • Requires less refining 50o - 70o AP
Slide 16: 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 17: 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 17 Africa Energy | March 2019
Slide 18: 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 19: 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 20: 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 21: Summary – Platform for Growth
Summary – Platform for Growth Near-Term, High-Impact Exploration • Block 11B/12B - 1 Bboe discovered, substantial upside • 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 22: 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 23: 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