VANCOUVER, BC, March 25, 2026 /CNW/ – Africa Energy Corp. (TSXV:AFE) (Nasdaq First North: AEC) (“Africa Energy” or the “Company”), an oil and gas exploration company, announces financial and operating results for the year ended December 31, 2025. View PDF Version
Robert Nicolella, Africa Energy’s CEO, commented, “We are feeling cautiously optimistic about the recent announcements made by key ministers in government regarding the importance of natural gas as a key transition fuel in the energy transition and the decision to proceed with determination of appeals against environmental authorizations. We believe this demonstrates the government’s commitment to attract investment to the industry and advance the development of its domestic resources to ensure energy security, which has been emphasized by recent conflict in the middle east.”
On March 5, 2026, the Honorable Minister of Mineral and Petroleum Resources, Mr. Gwede Mantashe, highlighted the role natural gas must play in closing the energy deficit in South Africa and that natural gas will be the most effective transition fuel. Further Mr. Gwede Mantashe identified Africa Energy Corp.’s discovered resources in Block 11B/12B1, offshore South Africa, as a resource which the government of South Africa is seeking to accelerate development of.
On March 11, 2026, the newly appointed Honorable Minister of Forestry, Fisheries and the Environment, Mr. Willie Aucamp, announced that his department is proceeding with determination of appeals lodged against environmental authorizations granted for offshore oil and gas projects. Following the previous decision of the Western Cape High Court in South Africa to set aside an environmental authorization for the offshore exploration operations in Block 5/6/7 (held by unrelated parties), the former Minister of Forestry, Fisheries and the Environment made a decision to defer appeals lodged with his department following the granting of environmental authorizations pending the outcome of court proceedings in respect of the Block 5/6/7 judgement.
The Company took the prudent step of pausing its Environmental Authorization (“EA”) application for Block 11B/12B, offshore South Africa, following the previous decision by the Western Cape High Court. This allowed the Company to fully assess the implications of the new legal and regulatory landscape and ensure its EA application and development plans were optimally aligned. Concurrently, the Company’s technical team continues to advance technical work on various development scenarios.
2025 HIGHLIGHTS
- On February 28, 2025, Main Street 1549 Pty. Ltd. (“Main Street 1549”), appointed operator of Block 11B/12B in November of 2024, submitted a new Environmental Authorization (“EA”) application with a revised project scope.
- On March 31, 2025, the Company closed a non-brokered private placement of common shares and a shares-for-debt transaction, which significantly improved the Company’s financial position. These transactions allowed the Company to fully repay its debt, which consisted exclusively of obligations under the promissory note, and to provide it with an additional $2.9 million after debt repayment for general working capital purposes and to advance the development of the Company’s interest in Block 11B/12B.
- 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”), 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.
- At December 31, 2025, the Company had US$3.2 million in cash, US$3.0 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. In addition, Main Street 1549 had US$1.6 million of cash at December 31, 2025.
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1 Main Street 1549 currently holds a 10% participating interest in Block 11B/12B, offshore South Africa. The Company currently owns 49% of the common shares and 100% of the Class B shares of Main Street 1549. |
OUTLOOK
The Company is focused on obtaining environmental authorization for development of discovered resources in Block 11B/12B so that it can obtain the Production Right approval. Early engagements with relevant stakeholders on gas supply has commenced in an effort to secure offtake customers for future development.
Subject to all relevant regulatory approvals by South African authorities with …