Africa Energy Strengthens Hold on South African Gas Block with 75% Stake Increase
Africa Energy Corp. has announced a major restructuring of its investment in South Africa’s promising Block 11B/12B, increasing its stake to 75% through subsidiary Main Street 1549 (Proprietary) Limited. The Canadian oil and gas exploration company reached definitive agreements with Arostyle Investments, which will retain the remaining 25% interest, following the exit of certain partners.
The company simultaneously reported strong financial improvements for Q2 2025, holding $4.1 million in cash and positive working capital of $3.8 million, compared to a working capital deficit of $8.2 million at the end of 2024. Most notably, Africa Energy now reports zero outstanding debt, down from $10.4 million as of December 31, 2024.
To support the strategic transition, the company appointed Dr. Phindile Masangane as Head of Strategy and Business Development, also joining the Board of Directors. Her expertise in South African regulatory frameworks and energy infrastructure projects positions the company well for block development. Larry Taddei was appointed as the new Chair of the Audit Committee, replacing Pascal Nicodeme.
Operating expenses dropped dramatically to $477,000 in Q2 2025 from $47.6 million the previous year, with total expenses falling by more than $70 million over the half-year period. The Brulpadda and Luiperd fields within the block are considered among Southern Africa’s most promising natural gas assets.
Source: energynews.pro
