Africa Energy

Africa Energy Corp. is a Canadian-based oil and gas exploration company strategically focused on offshore assets in the Republic of South Africa. The company was originally incorporated as Denovo Capital Corp. on April 27, 2010, before changing its name to Horn Petroleum Corporation in 2011 and ultimately to Africa Energy Corp. on March 11, 2015. As an exploration-stage company, it has not yet generated revenue from oil and gas production.

The company's primary asset is its interest in Block 11B/12B, a large exploration right located in the Outeniqua Basin, approximately 175 kilometers off the southern coast of South Africa. This block, which contains the significant Brulpadda and Luiperd gas condensate discoveries, is considered one of the most promising natural gas assets in Southern Africa. Following the 2024 withdrawal of joint venture partners TotalEnergies, QatarEnergy, and Canadian Natural Resources, Africa Energy, through its subsidiary Main Street 1549, is set to become the operator and hold a 75% participating interest, with the remaining 25% held by Arostyle Investments. The company is now focused on obtaining a Production Right for the block, finalizing development plans, and securing offtake agreements for the discovered gas and condensate resources.

Africa Energy is part of the Lundin Group of Companies, a well-established group in the natural resources sector. The company is publicly traded on the TSX Venture Exchange in Toronto (ticker: AFE) and the Nasdaq First North Growth Market in Stockholm (ticker: AEC). Leadership includes CEO Robert Nicolella and former President and CEO Garrett Soden, who has an extensive background in the natural resources sector with the Lundin Group and holds degrees from the London School of Economics and Columbia Business School. Jan Maier, a geoscientist with deep experience at firms like Tullow Oil, was instrumental as VP Exploration in securing the Block 11B/12B opportunity before his retirement.

The business model centers on acquiring, exploring, and ultimately developing and monetizing petroleum assets. Its financial structure is reliant on equity and debt financing to fund its exploration activities and operating expenses while it works towards commercial production. The successful development of Block 11B/12B is critical for its transition from an exploration entity to a producing company, with the potential to supply a significant portion of South Africa's energy needs.

Keywords: oil and gas exploration, South Africa energy, offshore drilling, Outeniqua Basin, Block 11B/12B, gas condensate, Brulpadda discovery, Luiperd discovery, petroleum assets, Lundin Group, Canadian oil company, TSX Venture Exchange, Nasdaq First North, energy exploration finance, Main Street 1549, Production Right South Africa, natural gas development, Garrett Soden, Jan Maier, Robert Nicolella, deepwater exploration