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.
The Company achieved the following key milestones year-to-date in 2018:
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.
(Unaudited; thousands of US dollars, except per share amounts)
Net loss per share (basic and diluted)
Weighted average number of shares outstanding (basic and diluted)
Number of shares outstanding
Cash flows provided by (used in) operations
Cash flows provided by (used in) investing
Cash flows provided by (used in) financing
Total change in cash and cash equivalents
Change in share capital
Change in contributed surplus
Change in deficit
Total change in equity
Cash and cash equivalents
Total equity attributable to common shareholders
Net working capital
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.