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Quarterly Update Announcement

EFORA ENERGY LIMITED

(Incorporated in the Republic of South Africa)

(Registration number 1993/000460/06)

JSE Share Code: EEL

ISIN: ZAE000248258

(“Efora” or “the Company”)

 

QUARTERLY UPDATE ANNOUNCEMENT

 

Shareholders of the Company (“Shareholders”) are referred to the ongoing suspension in trading of the Company’s shares on the Johannesburg Stock Exchange (“JSE”) which came into effect on 9 October  2020 pursuant to the delay in publication of the results for the year ended 29 February 2020 (“2020 Results”). The 2020 Results were published on 1 July 2021 but trading in the Company’s shares remains suspended due to the subsequent delay in publication of the results for the yearended 28 February 2021 (“2021 Results”) brought upon by the business rescue proceedings at Afric Oil Proprietary Limited (“Afric Oil”), a former 71.13% indirectly owned subsidiary of the Company. The purpose of this announcement is to provide an update on the current state of affairs of the Company and the progress made to date in working towards achieving the reinstatement of trade in the Company’s shares.

 

Business rescue proceedings at Afric Oil

Shareholders are referred to the various announcements issued on the Stock Exchange News Service (“SENS”) regarding the business rescue proceedings at Afric Oil, the last of which was published on 8 February 2022. This announcement contained an update regarding the disposal by the Company of Afric Oil to Royale Energy Limited (“Royale”) which came into effect on 1 March 2022. The Company received R10 000 000 for the disposal of its interest in Afric Oil.

 

Amounts due from Transnational Corporation of Nigeria Limited (“Transcorp”)

Transcorp made the last payment of US$1 250 000 in December 2021 pursuant to the settlement agreement concluded in November 2020 and has now discharged in full its indebtedness to the Company. Amounts due from Encha Group Limited (“Encha”) Efora has concluded a settlement agreement with Encha pursuant to which Encha will pay R40 000 000 in full and final settlement of all amounts owed to Efora. This amount has been received by Norton Rose Fulbright (Efora’s counsel on record) in accordance with the provisions of the settlement agreement and for onward remittance to Efora, accordingly. Efora has, in total, recovered R45 750 000 from Encha of which R5 750 000 was received in July and August 2020. The original debt owing to the Company by Encha was in the amount of R75 000 000 excluding interest. This settlement brings to an end a protracted legal process that commenced in 2016.

 

Progress regarding the 2021 Results

Afric Oil was a key entity in the Group and the finalisation of its results for the year ended 28 February 2021 was impacted by the business rescue proceedings which also posed challenges regarding the commencement of the annual audit of the company for the year then ended. Royale, the new owner of Afric Oil has appointed a new auditor who has now commenced the annual audit for the year ended 28 February 2021. The Afric Oil audit is expected to be completed on or about 31 May 2022. We will provide further updates regarding our expectation of when we can publish the outstanding 2021 Results.

 

Johannesburg

12 April 2022

 

Sponsor

PSG Capital

 

For further information please contact:

 

Efora Energy Limited

Darrin Arendse

 

+27 (0)10 591 2260

 

Date: 12-04-2022 03:30:00

 

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