Africa Energy Closes Block 11B/12B Transaction in South Africa

VANCOUVER, Dec. 19, 2018 /CNW/ - Africa Energy Corp. (TSX Venture: AFE) (Nasdaq First North: AEC) ("Africa Energy" or the "Company"), an oil and gas company with exploration assets offshore South Africa and Namibia, has received governmental approval and closed the previously announced transactions to acquire an effective 4.9% interest in the Exploration Right for Block 11B/12B offshore South Africa. View PDF version

Garrett Soden, Africa Energy's President and CEO, commented, "We are excited to partner with Total, Qatar Petroleum and CNRI on Block 11B/12B in South Africa. This is a unique opportunity for us to explore with majors in one of the most prospective areas offshore the African continent. We look forward to spudding the Brulpadda-1AX well this month."

Africa Energy holds 49% of the shares in Main Street 1549 Proprietary Limited ("Main Street 1549"), which has closed separate farmin transactions with Total E&P South Africa BV ("Total"), a wholly-owned subsidiary of Total SA,  and CNR International (South Africa) Limited ("CNRI"), a wholly-owned subsidiary of Canadian Natural Resources Limited, to acquire 5% from each for an aggregate 10% participating interest in Block 11B/12B (4.9% net to Africa Energy).

Block 11B/12B is located in the Outeniqua Basin approximately 175 kilometers off the southern coast of South Africa. The block covers an area of 18,734 square kilometers with water depths ranging from 200 to 2,000 meters.  After closing, Total, as operator, will have a 45% interest in Block 11B/12B, while Qatar Petroleum and CNRI will have 25% and 20% interests, respectively.

The Brulpadda-1AX exploration well will be drilled in 1,432 meters of water by the Odfjell Deepsea Stavanger semi-submersible rig to a total depth of 3,420 meters subsea. The well will test the oil potential in a mid-Cretaceous aged deep marine fan sandstone system within stratigraphic closure. Drilling and evaluation of the well is expected to take approximately 85 days.

At closing, Africa Energy paid an aggregate of US$16.5 million for its share of the Main Street 1549 transactions. The closing payment included past exploration expenditures, interim period costs, an agreed carry amount for Brulpadda-1AX well costs and the applicable Value Added Tax, which is expected to be recovered.

About Africa Energy Corp.

Africa Energy Corp. is a Canadian oil and gas company with exploration assets offshore South Africa and Namibia. The Company is listed on TSX Venture Exchange (ticker "AFE") and Nasdaq First North Stockholm (ticker "AEC"). Africa Energy Corp. is part of the Lundin Group of Companies and is actively building an exploration and production portfolio across Africa.

Important information

Africa Energy is obliged to make this information public pursuant to the EU Market Abuse Regulation. The information was submitted for publication through the agency of the contact persons set out above on December 19, 2018 at 6:15 a.m. EST.

Forward-looking statements 

Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or the Company's future performance, business prospects and opportunities, which are based on assumptions of management.

The use of any of the words "will", "expected" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of certain future events. These forward-looking statements involve risks and uncertainties relating to, among other things, changes in oil prices, results of exploration and development activities, proposals for and results of exploratory drilling activity in Block 11B/12B, deliberations and decisions of the operating committee for Block 11B/12B, in which the Company will have a minority role, uninsured risks, regulatory changes, defects in title, availability of funds required to participate in the drilling activity, or of financing on reasonable terms, availability of materials and equipment, timeliness of government or other regulatory approvals, actual performance of facilities, availability of third party service providers, equipment and processes relative to specifications and expectations and unanticipated environmental impacts on operations. Actual future results may differ materially. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to the Company. The forward-looking information contained in this release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

The Company's certified advisor on Nasdaq First North Stockholm is Pareto Securities AB.

SOURCE Africa Energy Corp.

For further information: Sophia Shane, Investor Relations, Canada, +1 (604) 689-7842; Robert Eriksson, Investor Relations, Sweden, +46 701 112 615, info@africaenergycorp.com, www.africaenergycorp.com