Replies to post #168 on Africa Energy Corp (HPMCF)

[Tamtam]

Pareto research - Better than expected production test at Luiperd
Africa Energy reports strong production test results from Luiperd with a higher than expected condensate yield of ~130 bbls/MMcf. This is equivalent to a liquids-ratio of 43%, which is well above our previously assumed 25%. As expected (link), total production of 9,820 boe/day was limited by surface equipment implying that production per well in the development phase likely will be much higher. Preliminary analysis indicate that we will increase our valuation by SEK 0.5-0.7/share on the back of today’s better than expected results. We also see upside potential from larger resource estimates and/or lower development costs (fewer wells needed) as the partners conduct further analysis when they now move into development planning for Block 11B/12B. BUY reiterated – TP SEK 4.0 to be increased