Press

Africa Energy Reports Third Quarter 2018 Results

Posted by OilVoice Press - OilVoice

13-Nov-2018


Africa Energy Corp. (TSX Venture: AFE) (Nasdaq First North: AEC) ("Africa Energy" or the "Company"), an oil and gas company with exploration assets offshore Namibia and South Africa, announces financial and operating results for the three and nine months ended September 30, 2018. View PDF Version. 

HIGHLIGHTS

The Company achieved the following key milestones year-to-date in 2018:

  • Private Placement – Africa Energy completed a private placement on May 4, 2018 for gross proceeds of approximately US$45.0 million to fund the Company's near-term high-impact exploration drilling program;
  • Secondary Listing – Africa Energy's common shares commenced trading on Nasdaq First North Stockholm on May 4, 2018. The secondary listing has increased the Company's trading liquidity and provided access to a broader investor base in Europe;
  • PEL 37 Drilling – In September 2018, the Cormorant-1 well was drilled on Petroleum Exploration License 37 ("PEL 37") offshore Namibia to a total depth of 3,855 meters before being plugged and abandoned. The well penetrated a 50-meter fan system of interbedded sandstones that proved to be water bearing. Wet gas signatures, indicative of oil, were encountered in the overlying shale section. The geological data from this well will help determine the future prospectivity of PEL 37;
  • Block 11B/12B Exploration Renewal and Rig Mobilization – In May 2018, the joint venture partnership on Block 11B/12B offshore South Africareceived approval from the Petroleum Agency of South Africa for entry into the next two-year exploration period. The Odfjell Deepsea Stavanger semi-submersible rig is currently being mobilized from the North Sea and is expected to arrive in South Africa in December 2018;
  • Block 2B Exploration Renewal – In February 2018, the joint venture partnership on Block 2B offshore South Africa received approval from the Petroleum Agency of South Africa for entry into the next two-year exploration period.

 

OUTLOOK

The Brulpadda-1AX re-entry well on Block 11B/12B is expected to spud by the end of December 2018. The Brulpadda prospect was defined on 2D seismic and is one of five submarine fan prospects with large prospective resources. The Company intends to close the farmin agreements to acquire its 4.9% effective interest in Block 11B/12B before spud of the well. Closing is subject to standard conditions for a transaction of this type.

FINANCIAL INFORMATION
(Unaudited; thousands of US dollars, except per share amounts)

     
 

Three

Three

Nine

Nine

 

months

months

months

months

 

ended

ended

ended

ended

 

Sept. 30,

Sept. 30,

Sept. 30,

Sept. 30,

 

2018

2017

2018

2017

Operating expenses

1,147

1,138

4,109

3,479

Net loss

(850)

(950)

(3,786)

(3,096)

Net loss per share (basic and diluted)

(0.00)

(0.00)

(0.01)

(0.01)

Weighted average number of shares outstanding (basic and diluted)

681,965

319,177

518,437

319,177

Number of shares outstanding

683,356

319,177

683,356

319,177

     

Cash flows provided by (used in) operations

(734)

(1,190)

(3,503)

(3,196)

Cash flows provided by (used in) investing

(5,661)

(2,233)

(5,780)

(2,695)

Cash flows provided by (used in) financing

195

(16)

44,092

(57)

Total change in cash and cash equivalents

(6,169)

(3,267)

34,768

(5,612)

     

Change in share capital

336

-

44,235

-

Change in contributed surplus

88

40

740

156

Change in deficit

850

950

3,786

3,096

Total change in equity

(426)

(910)

41,189

(2,940)

     
 

September 30,

December 31,

  

2018

 

2017

Cash and cash equivalents

 

37,900

 

3,132

Total assets

 

53,480

 

17,457

Total liabilities

 

169

 

5,335

Total equity attributable to common shareholders

 

53,311

 

12,122

Net working capital

 

38,136

 

(1,872)

 

The financial information in this table was selected from, and should be read in conjunction with, the Company's unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2018 (the "Financial Statements") and the Annual Information Form, which are available on SEDAR at www.sedar.com and the Company's website www.africaenergycorp.com.

EARNINGS TREND AND FINANCIAL POSITION
(Unaudited; US dollars)

The Company's operating expenses were consistent for the three months ended September 30, 2018 compared to the same period in 2017. The Company's net loss decreased $0.1 million for the three months ended September 30, 2018 compared to the same period in 2017 due to an increase in interest income as a result of increased cash from the private placement executed in May 2018.

The Company's operating expenses and net loss increased for the nine months ended September 30, 2018 compared to the same period in 2017. Stock-based compensation increased $0.7 million due to the issuance of 18.2 million stock options during the first nine months of 2018 compared to 2.5 million options granted during the nine months ended September 30, 2017. Stock exchange and filing fees increased by $0.2 million due to the secondary listing on Nasdaq First North Stockholm. These increases were partially offset by a $0.3 million decrease in new venture costs in 2018 as the Company acquired geological and geophysical data during the first nine months of 2017.

As at September 30, 2018, the Company had cash of $37.9 million and net working capital of $38.1 million compared to cash of $3.1 million and negative working capital of $1.9 million at December 31, 2017. The Company's cash and net working capital improved significantly compared to the end of 2017 due to the completion of a private placement in the second quarter of 2018 for gross proceeds of approximately $45.0 million.

NEXT EARNINGS REPORT RELEASE

The Company plans to report results for the year ended December 31, 2018 on February 26, 2019. 

 



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EarningsResultsTSX-VTSX VentureAfrica EnergyNasdaNamibiaSouth AfricaAfrica

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