Page 19 - AfrOil Week 43

AfrOil NEWS IN BRIEF AfrOil

for a full gas production right following the
completion of successful pilot gas production
and commercialisation testing enabled from the
current approval.
Short term gas production could be achieved
through re-opening existing gas producing wells
in the areas designated for the establishment of
a pilot production test field in close proximity to
well number KA-03PT within the ER56 tene-
ment, and negotiations are advanced with poten-
tial off takers for the amounts of gas potentially
produced.
Afro Energy, October 21 2020

Ongoing work is focused on seismic repro- our progress as we look to deliver on our twin
cessing and further de-risking the prospects objective to expose our shareholders to high GAS TO POWER
and leads which have been mapped to date. impact exploration activity, while at all times
The forward plan is to build a robust prospect looking to minimise risk by scaling up our UK Tlou Energy seeking
inventory and subject to the results, secure part- onshore production profile and securing part-
ner(s) to drill wells. A farm-out process will be ners to drill wells.” funding for development
formally launched following completion of the Europa Oil & Gas, October 21 2020
technical work programme, however the Com- of Lesedi power project
pany continues to maintain dialogue with three Afro Energy granted
companies, all of whom have expressed interest Tlou Energy an ASX-, AIM- and BSE-listed
in Inezgane. approval to produce gas company focused on delivering power in Bot-
The original duration of the Inezgane Permit swana and southern Africa through the explo-
was eight years comprising three exploration from Amersfoort project ration and development of gas and solar power,
phases of which the Initial Phase of the Licence is seeking funding for development of the Lesedi
comprised two years. Following the extension, in South Africa power project.
the Initial Phase will now run for three years and Project Finance: The Company is currently
the duration of the Inezgane Licence across the Kinetiko Energy has announced that Afro seeking funding for development of the Lesedi
three exploration phases is now nine years. Energy has received approval to produce an power project. The project is proposed to be
At the end of the Initial Phase, Europa will amount of gas annually for a two-year period developed in two phases.
have the option to commit to drilling an explo- from the Amersfoort Project exploration Phase one involves transmission line con-
ration well in the Second Phase or to relinquish rights ER56 and ER38 by the Minister of Min- struction, transformers, grid connection, elec-
the Licence. eral Resources of the Republic of South Africa tricity generators and potentially the drilling of
Simon Oddie, CEO of Europa, said: “We are (DMR). additional gas wells. The approximately 100-km
extremely grateful to the Moroccan authorities Kinetiko chairman Adam Sierakowski stated: transmission line will run from the Lesedi pro-
for their swift response to the challenges posed “Kinetiko, through its 49% economic inter- ject to the town of Serowe, where it will connect
by the global pandemic and specifically for est in Afro Energy, has accomplished another to the existing power grid. Initial generation is
granting us a one year extension to the Initial major milestone towards achieving its vision of proposed to be up to 2 MW of electricity. Fund-
Phase of the Inezgane Licence. The equivalent of becoming the largest on shore gas producer In ing required for phase one is approximately
approximately 50 UKCS North Sea blocks, Inez- South Africa. The approval to produce and sell $10mn.
gane covers a large area in the Agadir basin and, gas enables the Company to fast track pilot field Phase two funding is for the expansion of
while much work has already been carried out gas production which has the potential to deliver electricity generation up to 10 MW. This will
despite COVID-19, this extension will enable us first certified gas reserves and revenues.” involve drilling additional gas wells and the
to build on the encouraging results seen to date, The Company has identified a further 20 gas purchase of additional electricity generators.
the highlights of which include the mapping by compartments across the Amersfoort Project Funding required for phase two is approximately
Europa of up to 10mn barrels of unrisked oil from recently completed and interpreted aer- $20m.
resources. Inezgane is living up to the prom- omagnetic surveys. Existing pilot production Upon successful completion of phase one and
ise we identified when we first applied for the wells and each of the recently identified gas two, the Company plans to expand the project
Licence. With the extension granted, we are now compartments has the potential to host gas pro- beyond 10 MW. This expansion is expected to
focused on completing the technical work ahead duction wells which provides the Company with be completed using project revenues and debt.
of securing a partner or partners with whom extensive alternatives to target pilot production Current funding discussions are mainly
we can work to realise the Licence’s substantial wells adjacent to existing energy Infrastructure related to phase one ($10mn) and have been
potential. and markets. progressing well. The Company is in discussion
“Together with ongoing work to bring the The DMR approval entitles Afro Energy to with a number of groups, some more advanced
Wressle Oil Field in Lincolnshire online later produce gas and dispose of up to 500mn cubic than others.
this quarter, which will more than double our feet (14.2mn cubic metres) per annum of gas for These include institutions with a focus on
production to over 200 bpd, the months ahead a two year period. Afro Energy may also apply infrastructure development within Botswana
promise to be an exciting period for Europa. I for additions to or extensions of the current and cleaner energy groups looking to see a move
look forward to providing further updates on approval given. The Company intends to apply away from traditional coal fired generation.

Week 43 28•October•2020 www. NEWSBASE .com P19