OUTLOOK
In 2020,
Management is focused on closing the Block 2B farmouts and procuring a rig for the next exploration well, Gazania-1, which is expected to spud in the third quarter of 2021. Block 2B has significant contingent and prospective resources in shallow water close to shore and includes the A-J1 discovery from 1988 that flowed light sweet crude oil to surface. The Gazania-1 well will target two prospects in a relatively low-risk rift basin oil play up-dip from the discovery. The Company expects to close the Block 2B farmouts in the second quarter of 2021 whereby the Company will retain a 27.5% interest and be carried through the Gazania-1 well. Closing of the two farmout agreements is subject to standard conditions for this type of transaction, including approval of the South African government.
HIGHLIGHTS
- At
December 31, 2020 , the Company had$19.6 million in cash and no debt. - In 2020, the Company executed two definitive agreements that will allow it to increase its effective interest in Block 11B/12B offshore
South Africa from 4.9% to 10%, subject to certain consents and approvals. - The Luiperd-1X exploration well was drilled in approximately 1,800 meters of water by the Odfjell Deepsea Stavanger semi-submersible rig to a total depth of about 3,400 meters. The well encountered 73 meters of net gas condensate pay over a mid-Cretaceous high-quality reservoir interval and did not encounter the water contact.
- The Luiperd-1X well was opened to flow and reached a maximum constrained flowrate through a 58/64" choke of 33 million cubic feet per day of natural gas and 4,320 barrels of condensate per day, an aggregate of approximately 9,820 barrels of oil equivalent per day.
- The Block 11B/12B joint venture received the fully-processed 2D seismic dataset (7,033 linear kilometers) from Shearwater in
September 2020 and are currently in the process of finalizing a full prospect analysis for the eastern part of the block. The fast-track dataset received earlier in 2020 confirmed the Kloofpadda Play Trend, which consists of several large and encouraging leads. - The Block 11B/12B joint venture also recently received the final fully-processed 3D data that integrates the PGS and Polarcus surveys over the Paddavissie Fairway (2,305 square kilometers from PGS and 570 square kilometers from Polarcus). The fully-processed 3D data has significantly improved resolution and will be integrated with the drilling and testing results to facilitate the development studies and to mature previously identified leads into prospects within the Paddavissie Fairway.
FINANCIAL INFORMATION
(Audited; thousands of US dollars, except per share amounts)
Year Ended | Year Ended | |
2020 | 2019 | |
Operating expenses | 4,411 | 4,622 |
Net loss | (4,263) | (4,518) |
Net loss per share (basic and diluted) | (0.00) | (0.01) |
Weighted average number of shares outstanding (basic and diluted) | 873,814 | 683,878 |
Number of shares outstanding | 1,395,333 | 684,217 |
Cash flows provided by (used in) operations | (3,353) | (2,753) |
Cash flows provided by (used in) investing | (32,001) | 2,044 |
Cash flows provided by (used in) financing | 52,588 | 83 |
Total change in cash and cash equivalents | 17,235 | (601) |
Change in share capital | 205,256 | 168 |
Change in contributed surplus | (199) | 1,572 |
Change in deficit | 4,263 | 4,518 |
Total change in equity | 200,800 | (2,778) |
2020 | 2019 | |
Cash and cash equivalents | 19,643 | 2,408 |
Total assets | 244,034 | 41,908 |
Total liabilities | 1,796 | 464 |
Total equity attributable to common shareholders | 242,238 | 41,444 |
Net working capital | 18,193 | 2,111 |
The financial information in this table was selected from the Company's audited consolidated financial statements for the year ended
EARNINGS TREND AND FINANCIAL POSITION
(US dollars)
Operating expenses decreased by
At
NEXT EARNINGS REPORT RELEASE
The Company plans to report results for the three months ended
BOARD UPDATE
About
Important information
This is information that
The Company's certified advisor on Nasdaq First North Growth Market is
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", "planned" 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, the completion of farmout agreements, changes in oil prices, results of exploration and development activities, including results, timing and costs of seismic and drilling activity in the Company's area of operations and, uninsured risks, regulatory changes, defects in title, availability of funds required to participate in the exploration activities, 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
SOURCE
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