Africa Energy Announces 2024 Year End Results

VANCOUVER, BC, March 27, 2025/ CNW/ – Africa Energy Corp. AFE (Nasdaq First North: AEC) (” Africa Energy” or the “Business”), an oil and gas expedition business, reveals monetary and operating outcomes for the year ended December 31, 2024 View PDF variation

FINANCIAL AND OPERATIONAL UPDATE

The Business’s monetary outcomes for the year ended December 31, 2024 have actually been adversely affected by a US$ 97.4 million non-cash loss on revaluation of our financial investment in Block 11B/ 12B, overseas South Africa, which was because of modifications in base presumptions for discount rate rates used in the affordable capital design for valuing our interest in Block 11B/ 12B

In July 2024, TotalEnergies EP South Africa B.V. (” TotalEnergies”) supplied an alert that it was resigning as operator of Block 11B/ 12B In addition, TotalEnergies, QatarEnergy International E&P LLC and CNR International ( South Africa) Minimal supplied notification to the joint endeavor partners that they were withdrawing from their 45%, 25% and 20% interest, respectively, in accordance with the joint operating arrangement in regard of Block 11B/ 12B (” JOA”). Under the JOA, the withdrawing celebrations designate their interest totally free of charge to each of the non-withdrawing partners in percentage to the interest of non-withdrawing partners. Main Street 1549 Proprietary Limited (” Main Street”), of which the Business owns 49% of the typical shares and 100% of the Class B shares, holds the staying 10% interest in Block 11B/ 12B and does not plan to withdrawal from Block 11B/ 12B The withdrawal of the joint endeavor partners from Block 11B/ 12B goes through all pertinent regulative approvals by South African authorities.

On December 20, 2024, the Business participated in a non-binding arrangement with Arostyle Investments (RF) (Exclusive) Minimal (” Arostyle”), which holds the staying 51% of the typical shares of Main Street, to reorganize their joint financial investment in Main Street. The Business and Arostyle prepare to reorganize Main Street leading to the Business holding a direct 75% taking part interest and Arostyle holding a direct 25% interest in Block 11B/ 12B The restructuring of the financial investment will go through regulative approvals.

HIGHLIGHTS

• At December 31, 2024, the Business had US$ 2.3 million in money.
• On November 25, 2024, Main Street took control of as operator of Block 11B/ 12B and is presently settling the handover of very important details from previous operator, TotalEnergies.
• The joint endeavor collaboration sent an application for a Production Right on September 7, 2022 As part of the Production Right application procedure, the Block 11B/ 12B joint endeavor likewise prepared a draft Environmental and Social Effect Report (” ESIR”). On August 29, 2024, the joint endeavors partners in regard of Block 11B/ 12B got an extension to send the last ESIR up until Might 19, 2025 Main Street 1549, now as the designated operator, sent a brand-new ecological application on February 28, 2025 and anticipates to send the last ESIR in advance of the due date. The approval of the Production Right application will not take place up until after the Block 11B/ 12B joint endeavor gets ecological permission in regard of the ESIR.
• The Upstream Petroleum Resources Advancement Costs (now the Upstream Petroleum Resources Advancement Act, No. 23 of 2024) (the “Act”) was signed by the President on October 25, 2024, and released in the Federal government Gazette October 29, 2024 The Act will, nevertheless, just enter into result on a date repaired by the President by more pronouncement in the Federal government Gazette. We expect that the pronouncement on the efficient date of the Act will likely be made after the brand-new policies (” Petroleum Laws”) are released by the Minister of Mineral and Petroleum Resources. When released, the Petroleum Laws will go through a popular thirty-day public assessment duration throughout which time the market might make remarks and propose changes to the Petroleum Laws. The Petroleum Laws will intend to offer clearness and certainty regarding the useful execution of the Act by the Minister of Mineral and Petroleum Resources and the Petroleum Company of South Africa

OUTLOOK

Topic to all pertinent regulative approvals by South African authorities in regard to the withdrawal of the joint endeavor partners in Block 11B/ 12B and conclusion of the restructuring of Main Street 1549, the Business anticipates to hold 75% direct interest in Block 11B/ 12B In spite of the difficulties and hold-ups come across up until now, the Business stays positive that the Block 11B/ 12B resources can be commercially established. The Brulpadda and Luiperd discoveries are the biggest discoveries of gas resources in South Africa and if established might provide a considerable part of the nation’s energy requires as it looks for to shift to lower carbon energy sources. The Business will be concentrated on getting the Block 11B/ 12B Production Right approval and protecting offtake consumers.

SUBSEQUENT OCCASION

On January 30, 2025, the Business revealed that it plans to participate in financial obligation settlement arrangements with Lorito Doraline S.à.r.l., Lorito Floreal S.à.r.l., Lorito Arole S à.r.l. and Lorito Orizons S.à.r.l (together, the “Lorito Group”) and Deepkloof Limited(” Deepkloof”) in regard to existing insolvency under the Business’s promissory note, pursuant to which Deepkloof will get 323,345,000 shares of the Business to settle around US$ 4.5 million of existing insolvency of the Business and the Lorito Group will get, in the aggregate, 66,502,000 shares of the Business to settle around US$ 0.9 million of existing insolvency of the Business.

In addition, the Business revealed that it plans to finish a non-brokered personal positioning releasing approximately 598,153,000 typical shares of the Business at a problem cost of Canadian $ 0.02 for aggregate gross profits of around US$ 8.3 million The profits from the non-brokered personal positioning will be utilized to pay back around US$ 5.3 million of staying financial obligation under the promissory notes, for basic working capital functions and to advance the advancement of the Business’s interest in Block 11B/ 12B overseas South Africa

Conclusion of the financial obligation settlement arrangements and the non-brokered personal positioning, which is anticipated to take place on or before March 31, 2025, goes through specific conditions consisting of, however not restricted to, the invoice of the investor approval and the invoice of all required regulative approvals, consisting of the approval of the TSX Endeavor Exchange. Upon conclusion of the financial obligation settlement arrangements and the non-brokered personal positioning, Deepkloof is anticipated to straight own around 37% of the Business. In addition, Deepkloof owns around 51% of Effect Oil & & Gas Limited, which owns around 36.2% of Africa Energy.

The Business has actually likewise devoted to finishing a combination of the Business’s shares on a 5:1 basis within 90 days of closing the financial obligation settlement arrangements and the non-brokered personal positioning.

FINANCIAL INFO
( Examined; countless United States dollars, other than per share quantities)

The monetary details in this table was chosen from the Business’s audited combined monetary declarations for the year ended December 31, 2024 (the “Financial Statements”), which are readily available on SEDAR at www.sedar.com and the Business’s site at www.africaenergycorp.com.

REVENUES PATTERN AND FINANCIAL POSITION
( Examined; United States dollars)

Operating costs reduced by $ 19.6 million for the year ended December 31, 2024, compared to the very same duration in 2023. The Business tape-recorded a $ 97.4 million non-cash loss on revaluation of the monetary property throughout the 4th quarter of 2024 versus $ 114.2 million throughout the 4th quarter of 2023. The non-cash loss on revaluation of the monetary property connects to the Business’s financial investment in Block 11B/ 12B and was due primarily to modifications in base presumptions for discount rate.

At December 31, 2024, the Business had money of $ 2.3 million and working capital shortage of $ 8.2 million compared to money and working capital of $ 1.7 million at December 31, 2023 The decrease in working capital considering that December 31, 2023, can be primarily credited to the quantity due on the promissory note ending up being an existing liability, as it is due March 31, 2025 On December 19, 2022, the Business participated in a promissory note for $ 5.0 million On November 7, 2023, changes were made to increase the overall quantity readily available under the promissory note to $ 8.3 million, with a maturity date of March 31, 2025 At December 31, 2024, the Business obtained the overall quantity readily available under the promissory note.

NEXT REVENUES REPORT RELEASE

The Business prepares to report its outcomes for the 3 months ended March 31, 2025 on Might 15, 2025

About Africa Energy Corp.

Africa Energy Corp. is a Canadian oil and gas expedition business concentrated on South Africa The Business is noted in Toronto on TSX Endeavor Exchange (ticker “AFE”) and in Stockholm on Nasdaq First North Development Market (ticker “AEC”).

Essential details

This is details that Africa Energy is required to reveal pursuant to the EU Market Abuse Guideline. The details was sent for publication through the company of the contact individuals set out above on March 27, 2025, at 5:30 p.m. ET

The Business’s licensed consultant on Nasdaq First North Development Market is Bergs Securities AB, +46 739 49 62 50, rutger.ahlerup@bergssecurities.se.

Forward looking declarations

Particular declarations consisted of in this news release make up positive details. These declarations connect to future occasions or the Business’s future efficiency, service potential customers and chances, which are based upon presumptions of management.

Making use of any of the words “will”, “anticipated”, “prepared” and comparable expressions and declarations associating with matters that are not historic truths are meant to recognize positive details and are based upon the Business’s present belief or presumptions regarding the result and timing of specific future occasions. These positive declarations include threats and unpredictabilities associating with, to name a few things, modifications in oil rates, outcomes of expedition and advancement activities, consisting of outcomes, timing and expenses of seismic, drilling and advancement associated activity in the Business’s location of operations and, uninsured threats, regulative modifications, flaws in title, schedule of funds needed to take part in the expedition activities, or of funding on sensible terms, schedule of products and devices on acceptable terms, result of business settlements with federal government and other regulative authorities, timeliness of federal government or other regulative approvals, real efficiency of centers, schedule of 3rd party provider, devices and procedures relative to requirements and expectations and unexpected ecological effect on operations. Real future outcomes might vary materially. Numerous presumptions or elements are normally used in reasoning or making the projections or forecasts set out in positive details. Those presumptions and elements are based upon details presently readily available to the Business. The positive details consisted of in this release is made since the date hereof and the Business is not bound to upgrade or modify any positive details, whether as an outcome of brand-new details, future occasions or otherwise, other than as needed by appropriate securities laws. Due to the fact that of the threats, unpredictabilities and presumptions consisted of herein, financiers need to not put excessive dependence on positive details. The foregoing declarations specifically certify any positive details.

Neither TSX Endeavor Exchange nor its Guideline Solutions Supplier (as that term is specified in the policies of the TSX Endeavor Exchange) accepts obligation for the adequacy or precision of this release.

SOURCE Africa Energy Corp.

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