VANCOUVER, BC, Nov. 18,
2022 /CNW/ - Africa Energy Corp. (TSXV: AFE)
(Nasdaq First North: AEC) ("Africa Energy" or the "Company")
announces that the Gazania-1 exploration well on Block 2B offshore South
Africa did not encounter commercial hydrocarbons. The well
is being logged and will then be plugged and abandoned. Africa
Energy holds a 27.5% interest in Block 2B. View PDF version.
Jan Maier, Africa Energy's VP
Exploration, commented: "We have completed drilling the Gazania-1
well, which was designed to test the extension of the oil
discovered at A-J1 in 1988. The well was drilled to a total depth
of 2,330 meters below sea level and encountered wet gas throughout
the main target interval. This confirms an active petroleum system
within the basin, but the well did not encounter commercial
hydrocarbons. Early interpretation indicates that the trapping
mechanism is not effective at this location. Further technical work
is required to understand the complexity of the sedimentology and
to evaluate alternative viable trapping configurations in the A-J
Graben."
Block 2B is located offshore
South Africa in the Orange Basin.
The block covers 3,062 square kilometers approximately 25
kilometers off the west coast of South
Africa near the border with Namibia in water depths ranging from 50 to 200
meters. Soekor discovered and tested oil on Block 2B in 1988 with the A-J1 borehole, which
intersected thick reservoir sandstones between 2,985 meters and
3,350 meters. The well flowed 191 barrels of oil per day of
36-degree API oil from a 10-meter sandstone interval at
approximately 3,250 meters. Significant prospectivity was
identified over the A-J graben area using 686 square kilometers of
3D seismic data acquired in 2013.
The Gazania-1 exploration well was drilled to a total depth of
approximately 2,330 meters subsea. Gases normally associated with
light oil were encountered throughout the well, confirming that the
active hydrocarbon system proven by the A-J1 discovery extends
up-dip to the Gazania-1 well location. Weather conditions and
service logistics resulted in drilling delays. However, the well
was drilled safely, and there were no environmental challenges.
The Block 2B joint venture
submitted a Production Right application to the Petroleum Agency of
South Africa on November 15, 2022. The Gazania-1 well is
currently being logged, and the joint venture partners will
undertake a detailed analysis of the results. Further analysis and
integration of the well data will allow the joint venture to
determine next steps on the block.
The Company expects its net cost exposure on the well to be
approximately US$5 million.
Africa Energy has a 27.5% participating interest in Block
2B offshore South Africa. The block is operated by Eco,
which holds a 50% participating interest. Panoro holds a 12.5%
participating interest, and Crown Energy AB indirectly holds the
remaining 10%.
About Africa Energy
Corp.
Africa Energy Corp. is a Canadian oil and gas exploration
company focused on South Africa.
The Company is listed in Toronto
on TSX Venture Exchange (ticker "AFE") and in Stockholm on Nasdaq First North Growth Market
(ticker "AEC"). Africa Energy is part of the Lundin Group of
Companies.
Important information
This is information that Africa Energy is obliged to make
public pursuant to the EU Market Abuse Regulation. The information
was submitted for publication through the agency of the contact
persons set out above on November 18,
2022, at 2:00 a.m. ET.
The Company's certified advisor on Nasdaq First North Growth
Market is Aktieinvest FK AB, +46 739 4962 50,
rutger.ahlerup@aktieinvest.se.
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 exploration and development 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 on satisfactory terms,
outcome of commercial negotiations with government and other
regulatory authorities, 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 TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Africa Energy Corp.