Africa Energy Corp, an oil and gas exploration company, announces financial and operating results for the three and six months ended 30 June
The Block 11B/12B1 joint venture has applied for the Production Right and is contemplating an early production system (EPS) for a phased development of the Paddavissie Fairway. The EPS would provide first gas and condensate production from the Luiperd discovery and would accelerate the Block 11B/12B development timeline by utilising nearby infrastructure on the adjacent block in order to supply natural gas to customers in Mossel Bay for the conversion of natural gas to power and/or liquid petroleum products. The EPS would significantly decrease the capital expenditures required to reach first production on Block 11B/12B. The company expects that a full development of the Paddavissie Fairway would follow the EPS as the gas market expands in South Africa. The 2D and 3D seismic data has identified additional prospectivity in the Paddavissie Fairway and to the east, confirming exploration upside remaining across the block. The development of Block 11B/12B will have positive implications for the South African economy and will be critical in facilitating the country’s energy transition beyond coal with a domestic natural gas supply.
On 10 May, the company notified the joint venture partners on Block 2B of its intention to withdraw from future Block 2B operations. On 30 June, the company had US$1.3mn in cash.