PetroAfrique Oil and Gas Ltd is a majority indigenous ownership incorporated joint venture between Australian/British companies AfroHawk Plc & HACWA Pty Ltd and Nigerian company, Petrosands Oil & Gas Ltd. PetroAfrique, is initially targeting early cash flow through the acquisition of interests in upstream petroleum assets either currently producing or capable of being brought into production within 6-18 months.

The assets targeted may include Special Opportunity individual field assets currently owned 100% by NPDC, Marginal Fields and IOC/NNPC OML opportunities. Minimum individual field sizes representing PetroAfrique’s asset ownership share of 20 MMbbls 2P in groups of 100 MMbbls+ 2P or individual fields of the order of 100 MMbbls+ 2P are initially targeted in land or shallow offshore locales. Future developments for PetroAfrique, after the establishment of a solid bottom line of cashflow from oil, may also include opportunities in other West African nations as well as downstream value adding projects, particularly power production or gas sales on long term take or pay contracts and gas value adding joint venture opportunities such as GTL, LNG, methanol, fertilizers and plastics.

The Directors and senior management of this consortium are all well-seasoned highly competent professionals in the petroleum industry with a wealth of experience gained in country, (much of it with SPDC assets and affairs) as well as internationally. At Board and Senior Management level, there are over 300 years of directly relevant industry experience. In addition to robust technical and financial capabilities and homegrown relationships presented in more detail in the attachments to this introduction, individual PetroAfrique managers have a demonstrable HSE performance record, with a novel community partnership model based on deep host communities involvement in our operations and security.

Funding is planned to be sourced as a mix of debt and equity funding in the first instance with plans for subsequent listing following asset acquisition and partial commutation of early equity into a mix of cash and Company listed securities. Some use of corporate bonds is also allowed for.

PetroAfrique is, and will remain in full compliance with anti-bribery and anti-corruption legislation in Nigeria, the United Kingdom, Australia and any other relevant jurisdictions. The Company has a well developed corporate governance policy as a key performance metric to ensure compliance with all relevant corporate, community and national regulations.

PetroAfrique understands and recognizes well the over-arching requirements for effective and responsible community development and the implementation and monitoring on an on-going basis of effective environmental safeguards. We are committed to operating the assets or providing technical input to the Operator to sound international standards of good oilfield practice and to add value to the economy of Nigeria and we will operate the assets or provide technical input to sound international standards of good oilfield practice, and add value to the economy of Nigeria.

PetroAfrique’s interest in various assets will be qualified by the ability of the intending dealing parties to successfully fulfil the following deliverables:

  • Unfettered but confidential access to all relevant data on the Assets for a reasonable period of time for Company and its consultant Competent Persons (CP) to fully evaluate.
  • Certification of appropriate reserves, production forecasts and valuations by our CP.
  • Design, certification and costing by our management and our CPs of a full Field Development Plan (FDP) designed to rapidly optimize production.
  • Decisions on Operatorship or technical input into the Operatorship of these assets
  • The type of deal structure negotiable which must necessarily be deemed appropriate by external funders
  • The approval and implementation of a FDP to significantly increase the production profile of the fields selected.
  • Extension or re-issue of current titles to the Assets allowing for a minimum period of operations of 20 years
  • The “newcomers” PPT rate of no more than 65.75% from settlement of the acquisition or deal for a period of 5 years.
  • Full understanding of the implications of the proposed Petroleum Industry Bill.
  • Full understanding over which party has responsibility for remediation of past environmental damage and community compensation.
  • Full understanding of the value and implications of possible line losses.