ENERGY AFRICA - ENERGY AFRICA`S RESPONSE TO PETRON
ENERGY AFRICA - ENERGY AFRICA`S RESPONSE TO PETRONAS` COMMENTS IN RESPECT OF
PRODUCTION FORECASTS AND DEPENDENCE ON EQUATORIAL GUINEA
Energy Africa
Registration number: 1995/007140/06
(Incorporated in the Republic of South Africa)
JSE code: ENR ISIN code: ZAE000010427
ENERGY AFRICA`S RESPONSE TO PETRONAS` COMMENTS IN RESPECT OF PRODUCTION
FORECASTS AND DEPENDENCE ON EQUATORIAL GUINEA
1. The production forecasts in Energy Africa`s response to the Offer are those
used by the independent petroleum engineering consultants, PGS Reservoir
Consultants ("PGS"), in their valuation. The variance from Energy
Africa`s 2002 year end forecast is largely attributable to the timing of
the production due to the planned integrated phased development of a larger
reserve base resulting from further discoveries in Equatorial Guinea. This
approach maximises the value of developments and actually reduces Energy
Africa`s financing requirements. The variance from the previous forecast is
irrelevant to the PGS valuation.
2. Production from the Ceiba field for 2003 is expected to be lower than
previously forecast. However, this is a reservoir management decision and
represents a deferral of production. This has an insignificant impact on
the valuation of Energy Africa.
3. The G11 well has not proved to be a commercial discovery. However, the
well intersected an exceptional quality Tertiary sandstone containing 20m
of gas and 3m of 26`API oil. This significantly upgrades the prospectivity
of a number of Tertiary prospects which hitherto have not been accorded
priority.
In conclusion, the issues raised by Petronas in its announcement dated 30th
October 2002 have little relevance to Energy Africa`s valuation by PGS.
Directors` responsibility: The Energy Africa Directors, apart from Engen and/or
Petronas nominated directors, have considered all statements of fact and opinion
in this announcement. They accept, individually and collectively, responsibility
for the information contained in this announcement, and acknowledge that to the
best of their knowledge and belief (having taken all reasonable care to ensure
that such is the case) the information contained in this announcement is in
accordance with the facts and does not omit anything likely to affect the import
of such information.
31 October 2002
For more information about Energy Africa see: www.energyafrica.com
Enquiries:
Energy Africa Ltd Rhidwaan Gasant +27 21 400 7600
Date: 31/10/2002 05:56:31 PM Produced by the JSE SENS Department
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