LONDON, March 8,
2023 /CNW/ - (TSX: AOI) (Nasdaq-Stockholm: AOI) –
Africa Oil Corp. ("Africa Oil", "AOC" or the "Company") is
pleased to announce that an independent review of the Company's
prospective resources has been completed by RISC Advisory (UK)
Limited ("RISC"), in accordance with Canadian National Instrument
51-101 – Standards for Oil and Gas Activities ("NI 51-101"), the
Canadian Oil and Gas Evaluation Handbook ("COGE Handbook") and the
Petroleum Resources Management System 2018 ("PRMS"). The effective
date of RISC's report is March 7,
2023. View PDF version
Highlights
- RISC has reviewed the prospective resources and probability of
geological success of an inventory of exploration prospects within
Block 3B/4B and have reported total unrisked gross P50
prospective resources of approximately 4 billion barrels of oil
equivalent ("boe"). Probability of success ranges from 11% to 39%
over the 24 prospects identified.
- The prospect inventory evaluated by RISC has been identified
following completion of the reprocessing of 2,200 km2 of
3D seismic data and knowledge of the regional geology of
play-opening discoveries in the Orange Basin, offshore Namibia, including TotalEnergies' Venus
discovery and Shell's Graff, La Rona, and Jonker discoveries.
- Africa Oil is the operator of Block 3B/4B with a 20%
participating interest,
- The Company and its partners are progressing plans to conduct a
two-well campaign on Block 3B/4B and are in
discussions with various potential partners to farm out up to a 55%
gross working interest in the Block.
Africa Oil Chief Executive Officer, Keith Hill, commented on the statement of
reserves: "Africa Oil is at the forefront of the exciting
appraisal and exploration activities in the Orange Basin, probably
the most sought-after new petroleum region globally. We are the
only publicly-listed Independent E&P company with exposure to
the transformational upside of the Venus discovery and its possible
westerly extension. We are also excited about the large prospect
inventory in Block 3B/4B; the prospects are all based on 3D seismic and
are of similar age and type to the discoveries announced by Shell
and TotalEnergies in the Orange Basin. We are keen to begin
drilling our first prospect, possibly as soon as 2024, and we will
start the environmental impact surveys this month."
About Block 3B/4B
Block 3B/4B covers an area of 17,581 km2 within
the Orange Basin offshore of the Republic of South Africa. Africa Oil is the Operator with
a 20.00% participating interest, Ricocure Pty. Limited holds a
53.75% interest and Azinam South Africa Limited, a subsidiary of
Eco Atlantic Oil & Gas Ltd., has a 26.25% interest.
RISC has reviewed the prospective resources and probability of
geological success of 24 exploration prospects within Block
3B/4B
in accordance with the PRMS. The report provides an evaluation of
prospective resources from a prospect inventory identified using 3D
seismic data and follows completion of the reprocessing of 2,200
km2 of 3D seismic data and play-opening discoveries in
Namibia including TotalEnergies'
Venus discovery and Shell's Graff, La Rona, and Jonker light oil
discoveries. These discoveries prove the existence of a working
petroleum system for light oil, gas condensate and gas in the
geological play fairway. The proven reservoirs in Graff and Venus
discoveries are similar to Cretaceous reservoirs and geological
plays that would be targeted in the AOC 3B/4B Exploration
Right. Prospects in Block 3B/4B are
identified using 3D seismic data to assess the presence of seismic
attributes including amplitude-variation-with-offset ("AVO") or
direct hydrocarbon indicators ("DHI's"). RISC's report can be
accessed on the Company's website:
https://africaoilcorp.com/operations/project-overview/
Figure 1. Location map showing Block 3B/4B and other
Africa Oil interests in the Orange Basin.
Table 1: Gross Unrisked UPIIP (Undiscovered Petroleum Initially
in Place) and Unrisked Prospective Resources for Prospects in
Block 3B/4B and the Probability of Geologic Success (Pg)
for Prospects
Source: RISC Advisory- Prospective
Resources report of independent qualified evaluator for Block
3B/4B,
South Africa, 7 March 2023 on behalf of Africa Oil
Corp.
Notes:
1. Gross values are 100% of resources
attributable to Exploration Right .
2. Arithmetic
aggregation: RISC cautions that the 1U aggregate quantities may be
conservative estimates and the 3U aggregate quantities may be
optimistic due to portfolio effects.
Table 2. Summary of Gross and Net (20%) Unrisked Prospective
Resources for OIL
Notes:
Net values are Africa Oil Corp.'s 20%
working interest share of Gross Unrisked Prospective
Resources attributable to Exploration Right, and not
equivalent to an entitlement right.
Table 3. Summary of Gross and Net (20%) Unrisked Prospective
Resources for Associated GAS
Notes:
Net values are Africa Oil Corp.'s 20%
working interest share of Gross Unrisked Prospective Resources
attributable to Exploration Right, and not equivalent to an
entitlement right.
Definitions:
|
UPIIP
|
Undiscovered Petroleum
Initially In Place (resources)
|
STOIIP
|
Stock Tank Oil
Initially In Place
|
Stb
|
Stock tank
barrels
|
MMstb
|
Millions of stock tank
barrels
|
Bcf
|
Billion cubic feet of
gas
|
Pg
|
Probability of geologic
success
|
Overall
Pg
|
Auditor's assessment of
Pg based on a combination of risking criteria
|
1U-2U-3U
|
Undiscovered
prospective resources corresponding to P90-P50-P10 prospective
resource categories respectively
|
P90-P50-P10
|
90%, 50% & 10%
probabilities respectively that the stated quantities will be
equaled or exceeded
|
Associated
Gas
|
Gas produced as a
by-product of the production of crude oil
|
Prospective
Resources-
|
Those quantities of
petroleum which are estimated, as of a given date, to be
potentially recoverable from undiscovered accumulations as defined
in the SPE-PRMS
|
|
|
Qualified Person's Statement:
The CPR Report 'Prospective Resources report of independent
qualified evaluator for Block 3B/4B, South Africa, dated 7
March 2023' has been authorised for release by Mr.
Gavin Ward, RISC Director. RISC is
independent with respect to Africa Oil and confirms that there is
no conflict of interest with any party involved in the assignment.
Under the terms of engagement between RISC and Africa Oil, RISC
will receive a time-based fee, with no part of the fee contingent
on the conclusions reached, or the content or future use of this
report. Except for these fees, RISC has not received and will not
receive any pecuniary or other benefit whether direct or indirect
for or in connection with the preparation of this report. Neither
RISC Directors nor any staff involved in the preparation of this
report have any material interest in Africa Oil Corporation or in
any of the properties described herein.
About RISC Advisory
RISC is an independent oil and gas advisory firm. All of the
RISC staff engaged in this assignment are professionally qualified
engineers, geoscientists or analysts. RISC was founded in 1994 to
provide independent advice to companies associated with the oil and
gas industry. RISC has completed over 2,200 assignments in
more than 90 countries for over 500 clients.
About Africa Oil
Africa Oil Corp. is a Canadian oil and gas company with
producing and development assets in deepwater Nigeria; development assets in Kenya; and an exploration/appraisal portfolio
in west and south of Africa, as
well as Guyana. The Company is
listed on the Toronto Stock Exchange and on Nasdaq Stockholm under
the symbol "AOI".
Additional Information
This information is information that Africa Oil is obliged to
make public pursuant to the EU Market Abuse Regulation. The
information was submitted for publication, through the agency of
the contact persons set out above, at 6:30p.m. EDT on March 8,
2023.
Cautionary Statements Regarding Prospective Resources
Prospective Resources are defined as "….those quantities of
petroleum estimated, as of a given date, to be potentially
recoverable from undiscovered accumulations by application of
future development projects. Prospective resources have both an
associated chance of discovery and a chance of development." There
is no certainty that any portion of the prospective resources will
be discovered. If discovered, there is no certainty that it will be
commercially viable to produce any portion of the resources.
The Low Estimate represents the P90 values from the
probabilistic analysis (in other words, the value is greater than
or equal to the P90 value 90% of the time), while the Mid Estimate
represents the P50 and the High Estimate represents the P10. The
totals given are simple arithmetic summations of values and are not
themselves P90, P50, or P10 probabilistic values of the portfolio
of opportunities.
Forward Looking Information
Certain statements and information contained herein constitute
"forward-looking information" (within the meaning of applicable
Canadian securities legislation). Such statements and information
(together, "forward looking statements") relate to future events or
the Company's future performance, business prospects or
opportunities.
All statements other than statements of historical fact may be
forward-looking statements. Statements concerning prospective
resource estimates may also be deemed to constitute forward-looking
statements and reflect conclusions that are based on certain
assumptions that the prospective resources can be economically
exploited. Any statements that express or involve discussions with
respect to predictions, expectations, beliefs, plans, projections,
objectives, assumptions or future events or performance (often, but
not always, using words or phrases such as "seek", "anticipate",
"plan", "continue", "estimate", "expect, "may", "will", "project",
"predict", "potential", "targeting", "intend", "could", "might",
"should", "believe" and similar expressions) are not statements of
historical fact and may be "forward-looking statements".
Forward-looking statements involve known and unknown risks, ongoing
uncertainties and other factors that may cause actual results or
events to differ materially from those anticipated in such
forward-looking statements, including the results, schedules and
costs of exploratory drilling activity, uninsured risks, regulatory
and fiscal changes, availability of materials and equipment,
unanticipated environmental impacts on operations, duration of the
drilling program, availability of third party service providers and
defects in title.
Although the Company believes that the expectations reflected by
the forward-looking statements presented in this document are
reasonable, the Company's forward-looking statements have been
based on assumptions and factors concerning future events that may
prove to be inaccurate. Those assumptions and factors are based on
information currently available to the Company about itself and the
businesses in which it operates. Information used in developing
forward-looking statements has been acquired from various sources,
including third party consultants, suppliers and regulators, among
others. Because actual results or outcomes could differ materially
from those expressed in any forward-looking statements, investors
should not place undue reliance on any such forward-looking
statements. By their nature, forward-looking statements involve
numerous assumptions, inherent risks and uncertainties, both
general and specific, which contribute to the possibility that the
predicted outcomes will not occur. Some of these risks,
uncertainties and other factors are similar to those faced by other
oil and gas companies and some are unique to the Company.
No assurance can be given that these expectations will prove to
be correct and such forward-looking statements should not be unduly
relied upon. The Company does not intend, and does not assume any
obligation, to update these forward-looking statements, except as
required by applicable laws. These forward-looking statements
involve risks and uncertainties relating to, among other things,
changes in macro-economic conditions and their impact on
operations, changes in oil prices, reservoir and production
facility performance, hedging counterparty contractual performance,
results of exploration and development activities, cost overruns,
uninsured risks, regulatory and fiscal changes, defects in title,
claims and legal proceedings, availability of materials and
equipment, availability of skilled personnel, timeliness of
government or other regulatory approvals, actual performance of
facilities, joint venture partner underperformance, availability of
financing on reasonable terms, availability of third party service
providers, equipment and processes relative to specifications and
expectations and unanticipated environmental, health and safety
impacts on operations. Actual results may differ materially from
those expressed or implied by such forward-looking statements.
SOURCE Africa Oil Corp.