Block III DRC Licence Extension
EFORA ENERGY LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1993/000460/06)
JSE Share Code: EEL
(“Efora” or “the Company”)
BLOCK III, ALBERTINE GRABEN, DEMOCRATIC REPUBLIC OF CONGO – LICENCE EXTENSION TO JULY 2019 AND CHANGES TO THE PARTNERS IN THE BLOCK
Efora is pleased to obtain a licence extension for Block III in the DRC that extends the licence until July 2019, during which time the remaining partners will carry out a review of the technical data to determine the area that will be the subject of the renewal of the licence in July 2019. Under DRC legislation, the renewal of the licence is subject to the relinquishment of 50% of the total area of Block III. We envisage that the area to be relinquished lies largely in the Virunga National Park, which as previously reported was excluded as part of the seismic survey due to operational challenges associated with environmental sensitivities in this part of the block. The partners will during this extension period complete the evaluation of the technical data to determine the retention of the most prospective and operationally viable area of Block III.
Total E&P RDC, which previously held 66.7% of the working interest in Block III, has indicated that it will no longer continue as part of the consortium to further explore Block III. Consequently, Efora will pay its working interest share of forward costs associated with Block III. In addition, Efora now has the option to increase its working interest in Block III to 42.5% and is currently evaluating whether it will take up this option.
Efora and the remaining partners, Semliki Energy SARL (wholly-owned by the Divine Inspiration Group Proprietary Limited) and Société Nationale des Hydrocarbures (Sonahydroc SA owned by the DRC government) are committed to the continued development of Block III and will discuss future plans with the relevant authorities; and in this regard, will make further announcements in due course.
Commenting on the update, Efora’s Interim CEO Mr Matroos said:
“Efora has interpreted a large number of prospects and leads in Block III, of which 5 are anticipated to have several stacked targets which could be intersected with a single borehole. Efora considers the probability of finding hydrocarbons comparable to that in Uganda on the eastern side of Lake Albert where large-scale commercial discoveries have been made in recent years. The unaudited recoverable resource estimate resulting from Efora’s internal assessment equals 800 MMbbl (Low Estimate) and 1,213 MMbbl (Best Estimate). Efora recognises the challenge associated with the logistics of mobilising equipment into the area and drilling a well and will actively engage in finding a workable solution. We remain committed to moving forward on this exciting prospect alongside our remaining partners and will continue to assess our position with regards to establishing a level of exposure commensurate with our strategic objectives.”
22 May 2019
For further information please contact:
Efora Energy Limited
+27 (0)10 591 2260
Buchanan (Financial PR adviser)
Ben Romney / Chris Judd
+44 (0)20 7466 5000
Efora Energy Limited is a South African based independent African oil and gas company, listed on the JSE. The Company has a diverse portfolio of assets spanning production in Egypt; exploration and appraisal in the Democratic Republic of Congo; midstream project relating to crude trading in Nigeria and material downstream distribution operations throughout Southern Africa. Our focus as a Group is on delivering energy for the African continent by using Africa’s own resources to meet the significant growth in demand expected over the next decade.
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