The company was set up by the team that contributed much to Tullow Oil’s string of discoveries onshore and off the coast of Africa.
WATCH: Africa Energy Corp welcomes 'gigantic' discovery on its offshore South Africa block
They proved their worth again in February 2019 when, in a consortium led by Total, Africa Energy was part of one of the largest discoveries of the year at Brulpadda, off the coast of South Africa.
By any stretch it is a gigantic find, comprising an estimated billion barrels.
Africa Energy, which has a 5% stake in the field, believes the licence has the potential to be even larger.
The discovery was one of five potential targets identified by pre-drilling work.
Before the first well spudded, its potential was estimated at 500mln barrels with chances of success put at 60%.
After the first well, the chance of hitting something commercial in the other four prospects has risen to as high as 80-90%.
The discovery was also light oil and gas condensate, which carries a premium price as it is used for jet fuel for example.
Mossel Bay within reach
Brulpadda is also within reach of the infrastructure at South Africa’s Mossel Bay gas to liquids plant, which reportedly now is running out of its natural gas supply.
Total is proposing up to four additional wells to flesh out the potential, but Africa Energy has no intention of staying the course and becoming a producer.
After the next couple of wells, the plan is to move onto new projects around Africa.
The ex-Tullow team have plenty of ideas of where to look next, which might be anywhere off the coast from South Africa up to Senegal.
Africa Energy likes offshore projects as it sees them as easier to develop and monetise without the issues of borders and communities that you can get on land.
As well as Brulpadda, there are two other offshore assets currently in the portfolio and again identified by the team prior to setting up Africa Energy.
On Block 2b offshore South Africa, a partner is being sought to help with a new well up-dip of an initial discovery made in 1988.
Africa Energy also has a 10% stake in the offshore Namibia block PEL 37 where Tullow is the operator.
The plan here is to wait until a well in a neighbouring block (Osprey) is drilled as that will effectively de-risk Tullow’s Albatross target.
Africa Energy had cash of about US$20mln at the end of 2018, which is sufficient to fund the cost of further exploration at Brulpadda.
That kicks off this month with a new round of 3D-seismic ahead of the first of the new wells likely at the end of the year.
Additional funds, if required, should not be a problem as the majority shareholder is Sweden’s influential Lundin Group.
Listed in Toronto, Africa Energy’s market value currently is C$192mln (£109mln), which looks well short of what the stake in Brulpadda alone might be worth just on the one discovery not allowing for any additional success.