Past year: ▼ 55%(3.20c – 7.15c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
4 Apr 2022farm in farm out agreement▲ GoodMajor
Afro Energy signs a joint development agreement with South Africa's state-owned IDC for a roughly 20-well gas field on ER271: IDC puts in R70m for 45%, Afro R85m for 55%. Binding loan agreements are due by 1 August 2022; this is the long-awaited institutional funding, with field start expected late 2022.
24 Mar 2022investor presentation● Neutral
Notice of CEO Nick de Blocq's presentation at the 25 March ShareCafe webinar, with slides on the South African assets. Repeats known facts, including the ministerial consent and 4.9 Tcf 2C resource; no new information.
17 Mar 2022regulatory community update▲ GoodMajor
South African ministerial consent obtained for transfer of Badimo's 51% of Afro Energy to Kinetiko, described as the last regulatory approval needed; shareholder approval is still required. Resolves a key condition of the Badimo deal covering the 4.9 Tcf 2C resource.
14 Mar 2022half year report● Neutral
Half-year to 31 December 2021: loss $2,231,808, up from $1,124,340 a year earlier. Cash about $1.013m, debt free, after the $2.8m placement. Covers the Korhaan drilling and the Badimo restructure agreement already announced.
8 Mar 2022well test result● Neutral
Flow testing has started at Korhaan-4 after the storm-damaged pump was repaired, across a roughly 313m production section. No flow rates yet. Company says it is closer to funding from a major South African institution and off-take with Vutomi.
17 Feb 2022drilling progress report▼ Bad
All three Korhaan wells are logged, with similar geology and depths of 432-450m. A lightning strike on Korhaan-5 damaged the pump communications, suspending testing two weeks; flow tests now expected to resume in the last week of February. Delays the first flow rates.
4 Feb 2022drilling result▲ Good
Korhaan-5 (432m) has flowed gas and been logged, with about 133m of cumulative sand intervals; Korhaan-3 reached TD at 449m with strong gas shows and no groundwater inflow. Flow tests of 8-10 days per well are due to start 6 February. Flow rates still unmeasured.
1 Feb 2022quarterly activities report● Neutral
December quarter: cash about $1.013m, debt free, three Korhaan wells spudded and 42 new gas compartments identified. Korhaan-4 flow testing planned for first two weeks of February; a roughly A$7.0m South African institutional pilot-field funding is expected to close by end of March 2022.
27 Jan 2022resource reserve update▲ GoodMajor
Interpretation of the third aeromagnetic survey found 42 new gas-prospective compartments (264 km2), taking the total from 37 to 79 compartments covering 1,229 km2. These are prospective targets, not a booked resource.
24 Jan 2022drilling result▲ GoodMajor
Korhaan-5 reached 432m with gas throughout the production section, and Korhaan-3 hit substantial gas in its surface section at 177m. Korhaan-4 is logged and flow testing is due next week. The company claims a 100% gas discovery success rate; flow rates are still unmeasured.
12 Jan 2022drilling progress report● Neutral
Drilling resumed 10 January. Korhaan-4 is to be logged and then flow tested for at least a week; Korhaan-5 and Korhaan-3 follow, with Korhaan-3 now to use air/percussion rather than mud. Aeromagnetic interpretation is under way. No new results.
24 Dec 2021business combination▲ GoodMajor
Binding agreements signed to lift Kinetiko's Afro Energy stake from 49% to 100% by issuing 597,704,812 shares to Badimo, who would hold about 46% afterwards. Needs shareholder approval and an independent expert report. Resolves the May terms sheet into binding documents.
23 Dec 2021joint venture update▲ GoodMajor
Afro Energy signs a non-final terms sheet for a 50/50 JV with Vutomi Energy to generate and sell electricity using Afro gas and a free-loaned 1MW engine. A binding agreement is to be negotiated within 90 days. A small first step toward gas sales, not the gas traders' off-take.
20 Dec 2021drilling result▲ GoodMajor
Korhaan-4 reached 443m, the longest production interval in the Amersfoort area, with robust gas flows observed under choked conditions. Regulated flow testing is planned for early January 2022. A first positive result from the new campaign, though not yet a measured flow rate.
20 Dec 2021admin correction● Neutral
Share registry Automic notifies that its Perth office moves to 191 St Georges Terrace from 20 December 2021. Administrative only.
7 Dec 2021drilling progress report● Neutral
Storms and cementing-tool delays slowed drilling. Korhaan-3 is suspended at 102m until January 2022. Gas shows were noted at the base of the dolerite in each well. The 564 km2 aeromagnetic survey is complete, with processing due December-January.
25 Nov 2021drilling spud● Neutral
Third well, Korhaan-3, spudded, completing the three-well program's spuds for the year. Korhaan-4 is to drill into the gassy zones within days; Korhaan-5 has cased to about 150m. No flow results yet.
16 Nov 2021drilling spud● Neutral
Second well, Korhaan-5, spudded (air to 150m, then rotary mud to about 450m). Korhaan-4 is paused after casing to about 130m awaiting cementing hardware, and Korhaan-3 is now expected within days after Korhaan-4 reaches depth.
4 Nov 2021drilling spud▲ GoodMajor
First of three Korhaan wells, Korhaan-4, spudded using air/percussion drilling to about 450m, ending the long gap in new drilling. Korhaan-3 is expected the week of 15 November; flow rates will be assessed after Korhaan-4 completes.
4 Nov 2021agm notice● Neutral
The 2021 AGM is postponed to 8 December 2021 in Perth, using the ASIC two-month extension for 30 June year-end companies. Administrative.
29 Oct 2021quarterly activities report● Neutral
September 2021 quarter: cash about $2.165m, no debt, rigs mobilised for the first new wells on the project in over 8 years. The Badimo merger is still progressing toward completion this year. Repeats known regulatory approvals; ER320 environmental work is paused pending regulatory clarification.
20 Oct 2021drilling scheduled▲ Good
A drilling contractor (Torque Africa) is engaged for the three-well Korhaan program, drilling to 400-450m, with the first rig spudding as early as next week and drilling due to finish by early December. The largest-ever aeromagnetic survey has also started flying.
30 Sept 2021annual report● Neutral
Annual report for the year to 30 June 2021 (text provided is only the front section: directors and corporate directory). Financial results are not visible in the supplied text.
30 Sept 2021other● Neutral
Appendix 4G corporate governance checklist lodged with the annual report for FY2021. Administrative filing with no new business information.
8 Sept 2021joint venture update▲ GoodMajor
Badimo merger conditions are satisfied and tax structuring settled, so the definitive share purchase agreement can be signed, with completion targeted this year. A South African institution has decided to invest in a pilot field, documents being drafted. Drilling is now expected early Q4.
8 Sept 2021drilling scheduled● Neutral
A fourth aeromagnetic survey (13,479 line-km, 564 km2) over parts of ER270 and ER272 is confirmed, with results expected next month. The three-well program is said to remain on track, with the drilling contractor still to be chosen.
8 Sept 2021investor presentation● Neutral
Conference presentation repeating known points: 4.9 Tcf 2C contingent resource, three-well program starting early Q4 2021, and advanced talks with a South African institution to fund a 15-20 well pilot field. No new information.
25 Aug 2021regulatory community update▲ GoodMajor
South Africa's Minister approved merging ER56, ER38 and ER271 into one 1,287 km2 ER271. This lets Afro apply for a single production right over the Amersfoort area, continuing the production-right plan. Approval letter dated 19 August 2021.
12 Aug 2021drilling scheduled▲ GoodMajor
Three new wells (KA-03PT7, PT8, PT9) are planned and approved, within 400 m of the gas terminal, with rigs expected on site in September and completion by November. With existing wells they could form a 5-well pilot cluster. First new drilling on the project in over 6 years.
10 Aug 2021director officer appointment● NeutralMajor
Nick de Blocq, with 33 years in oil and gas across Africa, is appointed CEO on A$240,000 a year plus 2m options at 10c expiring July 2024. He succeeds long-standing CEO Johan Visagie, who is retiring.
