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Africa Energy Corp V.AFE

Alternate Symbol(s):  HPMCF

Africa Energy Corp. is a Canada-based oil and gas exploration company focused on South Africa. The Company owns approximately 49% of the common shares and 100% of the Class B shares in Main Street 1549 Proprietary Limited (Main Street 1549), which holds 10% participating interest in the Exploration Right for Block 11B/12B offshore the Republic of South Africa (Block 11B/12B). Block 11B/12B is located in the Outeniqua Basin approximately 175 kilometers (km) off the southern coast of South Africa. The block covers an area of 18,734 square kilometers (Km2) with water depths ranging from 200 meters in the north to 1,800 meters in the south.


TSXV:AFE - Post by User

Post by SBakeron Nov 02, 2020 5:51am
190 Views
Post# 31821571

Forward work programme ?

Forward work programme ?I think the issue is that there is only so much value that can be gained by selling gas/condensate to South Africa and this will limit the sale price. If we could prove we had oil then it opens up other markets.
 
We know we have oil in Brulpadda and the science indicates that we should find oil downdip on Luiperd but if we don’t appraise we can’t demonstrate that value to any buyer (unless there is a feature on seismic which I’m not aware of which could be used to demonstrate the oil leg to the satisfaction of the buyer).
 
Now is the time to go looking for the oil leg either by sidetracking downdip * or by deepening to the lower target (I still don’t know if they drilled both targets or just the upper one). A 2 – 3 week programme could easily answer the above.
 
If anyone has any contacts in AFE or other partners please give them a kick and try to wake them up to the value that could be gained by spending an extra 2-3 weeks especially since we have to pay for the rig anyway**.
 
Good luck all. 


*I appreciate that given the areal extent of the field and perhaps flat structure ?? a sidetrack might not get far enough downdip to make a difference in which case it would require a new well perhaps even 10's of KM away.

**I’m assuming the rig contract will not allow us to release early without penalties.

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