Renewal of PEL 37 Offshore Namibia and Signature of Rig Contract

Africa Energy Corp. is pleased to announce both the renewal of Petroleum Exploration License 37 ("PEL 37") offshore the Republic of Namibia and the signing of a rig contract.

The PEL 37 joint venture application for entry into the Second Renewal Period was approved by the Ministry of Mines and Energy in Namibia. The Second Renewal Period is for a period of two years commencing March 28, 2018 and includes an obligation to drill an exploration well.

The operator of PEL 37, Tullow Namibia Limited, has contracted the Ocean Rig Poseidon, a sixth-generation deep water drillship that is currently transitioning to Walvis Bay.

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Jan Maier, Africa Energy's VP Exploration, commented, "We welcome the renewal of PEL 37 offshore Namibia so that we can commence operations. Operator Tullow recently executed a contract with Ocean Rig to drill the Cormorant Prospect and plans to spud on September 1, 2018. ExxonMobil's recent entry into a block adjoining PEL 37 confirms our positive view of the geology in this region."

PEL 37 covers an area of 17,295 square kilometers in the northern Namibian offshore region. The Cormorant Prospect is located in the Walvis Basin in a water depth of approximately 550 meters. The prospect is one in a series of extensive base-of-slope turbidite fan prospects with significant combined resource potential. The fans are in close vertical proximity to a mature oil-prone source rock of Aptian age that was recently proven by the nearby Murombe-1 and Wingat-1 wells, the latter of which recovered light oil.

Africa Energy owns one-third of the shares in a subsidiary of Pancontinental Oil & Gas N.L., which holds a 30% participating interest in PEL 37, providing Africa Energy an effective 10% interest. The other participants in the PEL 37 joint venture are Tullow Namibia Limited, the operator with a 35% interest, ONGC Videsh Vankorneft Pte Ltd with 30% and Paragon Oil & Gas with 5%.

Source: Africa Energy Corp.
Date: Mar 8, 2018