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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 a 10% participating interest in the Exploration Rights 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 19,000 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

Bullboard Posts
Comment by Storckon Dec 17, 2015 3:17am
162 Views
Post# 24390825

RE:RE:Africa Energy enters definitive deals for block 2B

RE:RE:Africa Energy enters definitive deals for block 2BWaitingstill, I agree. Tey'll need a lot more money or a farmin partner to carry them through some drilling. The water depth on this block is shoreline to about 800' so drill costs will likley be at the lower range of your estimate. I note the description on the Crown Energy page states that the goal is "drilling of an exploration well to support the existing discovery well to establish resources in the reservoir." This is typical of a new exploration period in a PSC - it requires an exploration well to meet the commitment. This normally means a well with a target demonstrated to be a separate accumulation from any existing discovery. An appraisal well of the exisiting discovery may also be drilled but it won't satisfy the exploration obligation of the new period. This means they have agreed to put money into a higher-risk exploration well in order to extend the contract and have the ability to pursue appraisal of the old discovery. You're right that this money will likely be hard to find in this industry environment, but as you say one never knows what the Lundins have up their sleve.
Bullboard Posts