VANCOUVER, BC, Aug. 14, 2025 /CNW/ – Africa Energy Corp. (TSXV:AFE) (Nasdaq First North: AEC) (“Africa Energy” or the “Company”), an oil and gas exploration company, announces corporate update and financial and operating results for the three and six months ended June 30, 2025. View PDF version.
Robert Nicolella, Chief Executive Officer of Africa Energy, commented, “We are very pleased that the Company has demonstrated significant progress on many fronts for this exciting project. We have been successful in our efforts to consolidate and add clarity to our interest in Block 11B/12B after the departure of our partners, and we now have adequate capital and an experienced management team to move the project forward. The key issues surrounding monetization of the Block 11B/12B discoveries, including the granting of the production right, the offtake solution, and development options, are all progressing well.”
HIGHLIGHTS
- At June 30, 2025, the Company had US$4.1 million in cash, US$3.8 million of working capital and no debt compared to US$2.3 million in cash, US$8.2 million of working capital deficiency and US$10.4 million promissory note debt obligations at the end of 2024.
- On April 28, 2025, the Company hired Dr. Phindile Masangane as Head of Strategy and Business Development and appointed Dr. Masangane to the Company’s Board of Directors. Dr. Masangane’s experience in the energy sector, which includes serving as the Chief Executive Officer of The Petroleum Agency of South Africa, will be instrumental in assisting Africa Energy as we work to move Block 11B/12B to the development phase and bring our world class gas and condensate discoveries to market. Her vast experience in energy infrastructure development, policy and regulation, along with project finance expertise, will play a pivotal role in shaping the strategic direction of the Company.
- On May 15, 2025, Pascal Nicodeme resigned from his role as a member of the Board of Directors and Chairman of the Audit Committee. In his place, the Board appointed Larry Taddei, a seasoned financial expert with extensive experience in corporate governance and financial management. Mr. Taddei assumed the role of Chairman of the Audit Committee, bringing a wealth of knowledge and strategic insight to further strengthen the Company’s financial reporting and compliance practices.
- On May 28, 2025, the Company signed definitive agreements with Arostyle Investments (RF) (Proprietary) Limited (“Arostyle”) to restructure their joint investment in Main Street 1549 (Proprietary) Limited (“Main Street 1549”)1, which holds the participating interest in Block 11B/12B. The restructuring will result in the Company (through Main Street 1549) holding a 75% participating interest in Block 11B/12B with Arostyle holding the remaining 25%. The definitive agreements are subject to all relevant regulatory approvals being obtained and remain subject to the fulfilment of certain conditions, including the regulatory transfer approval of the withdrawing parties interest in Block 11B/12B.
- Effective May 30, 2025, the Company completed a consolidation of the Company’s shares on a 5:1 basis. After giving effect to the consolidation, the Company had 479,162,450 common shares issued and outstanding.
OUTLOOK
Subject to all relevant regulatory approvals by South African authorities in respect to the withdrawal of the joint venture partners in Block 11B/12B and completion of the restructuring of Main Street 1549, the Company expects to hold 75% direct interest in Block 11B/12B. Despite the challenges and delays encountered so far, the Company remains confident that the Block 11B/12B resources are capable of being commercially developed. The Brulpadda and Luiperd discoveries are the largest discoveries of natural gas resources in South Africa and if developed could supply a significant portion of the country’s energy needs as it seeks to transition to lower carbon energy sources. The Company will be focused on obtaining the 11B/12B Production Right approval and securing offtake customers, and the Company anticipates that its current financial position should be sufficient to achieve these objectives.
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FINANCIAL INFORMATION
(Unaudited; thousands of US dollars, except per share amounts)
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