| Wed 18 Jul 2001, 0:00 | | Chairman's Statement To Agm And Board Appointments |
|
Energy Africa Limited
Registration number : 1995/007140/06
(Incorporated in the Republic of South Africa)
CHAIRMAN'S STATEMENT TO AGM AND BOARD APPOINTMENTS
Cape Town, 18 July 2001. The Annual General Meeting of Energy Africa Ltd was
held in Cape Town today. Chairman Dato' Idris Mansor outlined the company's
success during the past year and made the following comments:
"This year your company celebrated the fifth anniversary of its listing on
the Johannesburg and Luxembourg stock exchanges. In our recently published
annual report, I took the opportunity to review our achievements of which we
can be justifiably proud.
To name but a few:
* During the five year period, production has increased by more than three
and a half times to the current level of 23,500 barrels per day
* Commercial reserves have increased 30% to 47 million barrels (this after
producing 26 million barrels)
* Our capacity to generate cash has increased and,
* Our balance sheet remains strong even after significant reinvestment in
the business.
However, I would like to restate our objective of making discoveries and
acquisitions of a magnitude that would double or treble the size of the
Company. An excellent example of this is our recent success in Equatorial
Guinea, and it has therefore been especially pleasing that since the
publication of our annual results we have been able to announce two
significant discoveries in Block G Equatorial Guinea, Okume-1 and Oveng-1,
in which we hold a 15% interest.
As important as the discoveries themselves is the strong likelihood of
further successful exploration wells, both in the immediate vicinity of the
discoveries and in the greater Blocks G and F area. A number of prospects
with similar seismic and geological attributes have been identified and
further exploration drilling will commence later in the year or early in
2002.
It is certainly premature to conclude that we have achieved our objective of
a step-change in the size of the company based on the recent successes, but
clearly the potential to do so is there. This view is supported by the
recent acquisition by Amerada Hess of our partner in Equatorial Guinea,
Triton Energy, at a significant premium to its share price. We are of
course not relying entirely on our interests in Equatorial Guinea but are
working hard at building our exploration portfolio, which we are confident
will continue to deliver success. Additional major developments are likely
in the Kudu field in Namibia, in Moho/Bilondo in the Congo and ongoing
developments in Gabon will continue to increase production in that area. I
therefore believe that your company faces the most exciting growth phase in
its history.
On this high note and on behalf of the Board, I am pleased to announce today
the appointment of Rhidwaan Gasant as the new Managing Director of Energy
Africa with effect from 1 August 2001. This appointment has been made after
full and careful consideration and the Board's decision that the company
would be best served by an individual from the African Continent who has the
necessary skills to maintain the success of the company. Rhidwaan will be
relinquishing his duties as Finance Director of Engen on taking up his
appointment with Energy Africa. He will of course be devoting 100% of his
efforts and services to looking after the interests of Energy Africa and all
of its shareholders and, to this end, will be resigning all of his positions
with Engen at the same time.
Rhidwaan is no stranger to the business, nor to Energy Africa, having spent
almost five years in London and Cape Town with Engen's exploration division
prior to the formation of Energy Africa. We are very pleased, therefore, to
welcome Rhidwaan to the Board as its new Managing Director.
Adrian Nel, who has been acting as Managing Director during the interim
period, is being appointed as Chief Operating Officer in order to reflect
his expanded responsibility in the light of the considerable operational
activity expected in the near future.
In addition, at the same time, we are also appointing to the Board, as
Commercial Director, Andrew Windham, currently our Group General Counsel.
Andrew has many years of experience in the independent oil sector and,
before joining Energy Africa, early in 1998, was on the main Board of Clyde
Petroleum, a highly respected middle-sized British independent. Andrew will
continue to be based in our London office and we are delighted to welcome
him to the Board.
I am confident that Rhidwaan, Adrian and Andrew will be a strong and
mutually supportive executive team, and that they, together with Bill Torr,
the Company Secretary and Group Financial Controller, as the executive
committee of the company, will be well capable of moving your company
forward to achieve the potential growth referred to earlier.
It is important to reaffirm that Energy Africa will continue to be
independently managed as a listed company. We take great pride in the
performance of Energy Africa, as already outlined to you earlier. There is
therefore no intention to discontinue the current strategies of exploration
and selective acquisition. These important considerations were part of the
process of choosing a new managing director who will make it his primary
duty to look after the interests of all the shareholders in Energy Africa.
Finally, I should like to repeat my thanks to Adrian Nel who has so very
ably acted as Managing Director in the interim period following John
Bentley's departure. I would also like to extend my thanks to my colleague
Peter Elwes, who agreed to act as Deputy Chairman during this period and
who, although now stepping down from that position, will, I am pleased to
say, stay on as an Independent Non-Executive Director. I look forward to
continuing to benefit from his wisdom and experience in the future.
Your company has had quite a remarkable period of growth over the last five
years. Our prospects for continued growth are evidenced by our ongoing
operational success over recent months."
18 July 2001
For more information about Energy Africa see: www.energyafrica.com.
Enquiries:
In Cape Town:
Energy Africa Ltd
Dato' Idris Mansor
Adrian Nel
+27 21 400 7600
Corporate Image
Tamra Veley
+27 21 426 1233
In London:
College Hill
Nicholas Williams
+44 20 7457 2020
+44 07767 242 566
