Africa Energy Announces First Quarter 2025 Results and Corporate Update
On
HIGHLIGHTS
- At
March 31, 2025 , the Company hadUS$4.7 million in cash,US$4.2 million of working capital and no debt compared toUS$2.3 million in cash,US$8.2 million of working capital deficiency andUS$10.4 million promissory note debt obligations at the end of 2024. - On
April 28, 2025 , the Company hired Dr. Phindile Masangane as Head of Strategy and Business Development and appointed Dr. Masangane to the Company's Board of Directors. Dr. Masangane's experience in the energy sector, which includes serving as the Chief Executive Officer ofThe Petroleum Agency of South Africa , will be instrumental in assistingAfrica Energy as we work to move Block 11B/12B to the development phase and bring our world class gas and condensate discoveries to market. Her vast experience in energy infrastructure development, policy and regulation, along with project finance expertise, will play a pivotal role in shaping the strategic direction of the Company. -
Main Street 1549 Pty. Ltd. ("Main Street 1549"), appointed operator of Block 11B/12B in November of 2024, submitted a new Environmental Authorization ("EA") application with a revised project scope onFebruary 28, 2025 and expects to submit a new Environmental and Social Impact Assessment ("ESIA") in advance of the revised deadline in September of 2025. The approval of the Production Right application will not occur until after the Block 11B/12B joint venture receives EA approval in respect of the revised ESIA. - The Company has also committed to completing a consolidation of the Company's shares on a 5:1 basis by
June 29, 2025 , which was approved by shareholders at a special meeting onMarch 27, 2025 , but is still subject to TSX Venture Exchange approval.
OUTLOOK
Subject to all relevant regulatory approvals by South African authorities in respect to the withdrawal of the joint venture partners in Block 11B/12B1 and completion of the restructuring of
__________________________ |
1
|
FINANCIAL INFORMATION
(Unaudited; thousands of US dollars, except per share amounts)
|
Three Months |
Three Months |
|
Ended |
Ended |
|
|
|
|
2025 |
2024 |
Operating expenses |
675 |
23,832 |
Net loss |
(958) |
(24,087) |
Net loss per share (basic and diluted) |
(0.00) |
(0.02) |
Weighted average number of shares outstanding (basic and diluted) |
1,418,790 |
1,407,812 |
Number of shares outstanding |
1,418,790 |
1,407,812 |
|
|
|
Cash flows provided by (used in) operations |
(199) |
(216) |
Cash flows provided by (used in) investing |
(359) |
(173) |
Cash flows provided by (used in) financing |
2,858 |
315 |
Total change in cash and cash equivalents |
2,382 |
(86) |
|
|
|
Change in share capital |
17,671 |
- |
Change in contributed surplus |
(3,956) |
375 |
Change in deficit |
958 |
24,087 |
Total change in equity |
12,757 |
(23,712) |
|
|
|
|
|
|
|
2025 |
2024 |
Cash and cash equivalents |
4,687 |
2,305 |
Total assets |
45,250 |
42,577 |
Total liabilities |
571 |
10,655 |
Total equity attributable to common shareholders |
44,679 |
31,922 |
Net working capital |
4,207 |
(8,229) |
The financial information in this table was selected from the Company's unaudited condensed interim consolidated financial statements for the three months ended
EARNINGS TREND AND FINANCIAL POSITION
(Unaudited; US dollars)
Operating expenses decreased by
At
CORPORATE UPDATE
The Company announces the resignation of
In his place, the Board has appointed
The Board of Directors has approved the grant of 3,500,000 incentive stock options. The options will be granted on
NEXT EARNINGS REPORT RELEASE
The Company plans to report its results for the six months ended
About
Important information
This is information that
The Company's certified advisor on Nasdaq First North Growth Market is
Forward looking statements
Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or the Company's future performance, business prospects and opportunities, which are based on assumptions of management.
The use of any of the words "will", "expected", "planned" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of certain future events. These forward-looking statements involve risks and uncertainties relating to, among other things, changes in oil prices, results of exploration and development activities, including results, timing and costs of seismic, drilling and development related activity in the Company's area of operations and, uninsured risks, regulatory changes, defects in title, availability of funds required to participate in the exploration activities, or of financing on reasonable terms, availability of materials and equipment on satisfactory terms, outcome of commercial negotiations with government and other regulatory authorities, timeliness of government or other regulatory approvals, actual performance of facilities, availability of third party service providers, equipment and processes relative to specifications and expectations and unanticipated environmental impacts on operations. Actual future results may differ materially. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to the Company. The forward-looking information contained in this release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information.
Neither
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