OUTLOOK
Management is focused on closing the Block 2B farmouts whereby the Company will retain a 27.5% interest and be carried through the next exploration well, Gazania-1, which is expected to spud in the second quarter of 2021. Closing of the two farmout agreements is subject to standard conditions for this type of transaction, including approval of the South African government. 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.
HIGHLIGHTS
· At
· The Company announced the signing of definitive agreements to increase its effective interest in Block 11B/12B offshore
· 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 joint venture is currently conducting a drill stem test.
·
· The Block 11B/12B joint venture recently received the fully processed 2D seismic dataset (7,033 linear kilometers) from Shearwater and has begun full prospect analysis for the eastern part of the block. The fast-track dataset received earlier in the year confirmed the Kloofpadda Play Trend, which consists of several large and encouraging leads.
· The Block 11B/12B joint venture also recently received the fully integrated fast-track 3D seismic dataset (2,305 square kilometer from PGS and 570 square kilometers from
[1 ]See the Company's disclosure in the
FINANCIAL INFORMATION
(Unaudited; thousands of US dollars, except per share amounts)
The financial information in this table was selected from the Company's unaudited consolidated financial statements for the three and nine months ended
EARNINGS TREND AND FINANCIAL POSITION
(Unaudited; US dollars)
Three Three Nine Nine
Months Months Months Months
Ended Ended Ended Ended
2020 2019 2020 2019
Operating expenses 1,138 686 3,553 4,063
Net loss (1,098) (700) (3,558) (4,003)
Net loss per share (basic and (0.00) (0.00) (0.00) (0.01)
diluted)
Weighted average number of 798,067 684,063 779,309 683,763
shares outstanding (basic and
diluted)
Number of shares outstanding 883,940 684,217 883,940 684,217
Cash flows provided by (used in) (698) (454) (2,363) (2,602)
operations
Cash flows provided by (used in) (14,455) (4) (13,106) 1,954
investing
Cash flows provided by (used in) 27,811 31 52,295 91
financing
Total change in cash and cash 12,679 (462) 36,698 (564)
equivalents
Change in share capital 28,536 64 53,467 168
Change in contributed surplus (526) 246 (144) 1,302
Change in deficit 1,098 700 3,558 4,003
Total change in equity 26,912 (390) 49,765 (2,533)
2020 2019
Cash and cash equivalents 39,106 2,408
Total assets 93,182 41,908
Total liabilities 1,973 464
Total equity attributable to 91,209 41,444
common shareholders
Net working capital 37,366 2,091
Operating expenses increased by
Operating expenses decreased by
At
NEXT EARNINGS REPORT RELEASE
The Company plans to report results for the year ended
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, 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
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+1 (604) 689-7842
Investor Relations,
+1 (604) 689-7842
Investor Relations,
+46 701 112 615
info@africaenergycorp.com
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