Energy Africa Acquires Stake in Block L Offshore Equatorial

Energy Africa has signed a farmout agreement with Chevron Equatorial Guinea Ltd, an affiliate of ChevronTexaco, to acquire a 20% interest in Block L, which covers a 5,000 square kilometer area offshore Equatorial Guinea. Block L is located in the Rio Muni Basin of Equatorial Guinea, immediately north of Blocks F and G, which include the producing Ceiba field and where 7 other discoveries have been made in the past two years.

Currently, Chevron Equatorial Guinea operates Block L with a 65% equity. Triton Equatorial Guinea (25%) and Sasol (10%) are the other partners. The acquisition of the 20% interest from the operator is subject to the consent of the Equatorial Guinean Government, which has a 7.5% back-in right in the case of a commercial discovery.

The first well in Block L, Ballena-1, is expected to commence drilling in late March or early April 2003.

Rhidwaan Gasant (Energy Africa CEO) said; "Energy Africa is delighted to be participating in another exploration venture in Equatorial Guinea, a country where we have already had considerable success. It is our belief that our technical experience gained from the company's current activities in Equatorial Guinea will add value to the venture".