Azinam South Africa Limited completes acquisition of 50% operated interest in Block 2B oil discovery offshore South Africa

Hamilton, Bermuda – April 20th, 2021:

Azinam South Africa Limited (“ASAL” or the “Company”), a Seacrest company, is pleased to announce the completion of its acquisition of a 50% operated interest in Block 2B offshore South Africa.

Under the terms of the Company’s farmout agreement with Africa Energy Corp., ASAL has acquired a 50.0% participating interest in Block 2B and become the Operator of Block 2B on behalf of the joint venture partners. Africa Energy Corp. will retain a 27.5% participating interest in the block.

Simultaneously, Panoro Energy has become a 12.5% participating interest holder on the licence. Crown Energy AB indirectly holds the remaining 10% participating interest.
ASAL and the other licence partners plan to drill up-dip of the A-J1 oil discovery, with the well targeting 349 million barrels of oil (Best Estimate Gross Prospective Resources). The Block 2B area has the potential to provide the first major oil production offshore South Africa, and the first oil production in the Orange Basin. ASAL is supported by its partner SeaPulse Ltd., a Seacrest and Robert Friedland-backed vehicle.

Daniel McKeown, Managing Director of Azinam South Africa Limited, commented:

“With the support of SeaPulse, a Seacrest and Robert Friedland-backed vehicle, ASAL is positioned to deliver the first major oil production offshore South Africa. With A-J1 having flowed oil to surface and with the benefit of a significant database of well and modern seismic information, Azinam believes that Block 2B has the potential to provide South Africa with its first major offshore oil production. This transaction will allow for a well to be drilled to test the wider potential of the A-J1 discovery. Azinam and its partners are targeting 349 million barrels of oil (Best Estimate of Prospective Resources).”

Paul Murray, Director of Azinam Group, commented:

“In 1988, the A-J1 well offshore South Africa encountered significant quantities of oil in 150m water depth and only 25km from shore. With the benefit of new 3D seismic, we can see that A-J1 drilled the down-dip section of a potentially much larger oil accumulation in a number of reservoirs.
Confirmation of a significant oil field on Block 2B, in a benign ocean setting and close to shore, represents a significant opportunity for the Republic of South Africa and the Block 2B licence holders to deliver the first major oil production offshore South Africa. ASAL has significant corporate experience in drilling offshore exploration wells to the highest international safety and performance standards.”

Block 2B, offshore the West coast of South Africa
Daniel McKeown

About Azinam

Azinam South Africa Limited is a wholly owned subsidiary of Azinam Limited (“Azinam”). Azinam
is a leading independent Africa focussed Oil & Gas company. The Company, headquartered in
Bermuda, was established in 2012. Azinam is an approved operator of oil and gas licences in
Namibia and South Africa, with six current licence positions. Azinam is actively reviewing growth
opportunities across Africa.

Azinam is committed to the highest Environmental, Social and Governance standards across all
its business activities.

About Block 2B South Africa

Block 2B is located in the Orange Basin and covers 3,062 square kilometres off the west coast of
South Africa 300 kilometres north of Cape Town with water depths ranging from 50 to 200
meters. Oil was discovered and tested on the block by Soekor in the A-J1 borehole drilled in 1988.
Thick reservoir sandstones were intersected between 2,985 meters and 3,350 meters. The well
was tested and flowed 191 barrels of oil per day of 36 degree API oil from a 10 meter sandstone
interval at about 3,250 meters. The 686 square kilometre 2013 3D seismic data confirmed the
up-dip prospectivity of the A-J1 discovery and significant further prospectivity up to a total of 1
billion barrels of oil on the Block 2B licence area.