In South Africa Crown Energy received the positive news that their partner Africa Energy successfully farmed out a part of their share in the Block 2B Licence to two new partners, Azinam and Panoro Energy during the month of February. Africa Energy also submitted the applications to the South African authorities - first to take the joint venture into the next extension phase of the Licence for a further two years with the intention to drill a well and; secondly to formally bring the new partner companies onto the Licence. The applications are progressing with the Governmental authorities in SA, in spite of extensive COVID-19 related restrictions in the country, and we hope to receive further feedback after the summer recess is over. Azinam will become the Operator of the Licence and will operate the planned drilling of the well, the location of which has now been proposed formally. Additionally, Africa Energy have an estimated first well prospect size of up to 349 million barrels, which is very encouraging. The Company will be carried through the next exploration well, Gazania-1, expected to spud in the first quarter of 2021. Gazania-1 will target two prospects in a relatively low-risk rift basin oil play up-dip from the discovery A-J1 borehole drilled in 1988.

In Equatorial Guinea Crown Energy have been working with their partners Vaalco and Atlas to assist them in taking over a portion of the Operator GEPetrol's equity in the Licence as well as supporting Vaalco in taking on a greater role in the operational management of the Licence. Crown Energy expect the Licence period to be extended by the Government as a result of the pandemic, as Government is applying this policy to all Licence holders in country.

In Madagascar, Crown Energy have been in contact with the authorities about the future of the Licence and have requested an extension. However, since the outbreak of the COVID-19 pandemic, the company had not progressed these communications. Crown Energy will await feedback from the authorities before deciding on the best way forward for the Company, in relation to the continuation of this licence.

Iraq has been quite heavily affected by the COVID-19 pandemic and activities there have been very restricted. Crown Energy remain in contact with the relevant authorities and continue to manage their Licence.

Financial performance

During the 2020 1H, net sales decreased by 32 percent compared to same period last year. The decrease is due to the devaluation of the Angolan currency, as the net sales in local currency increased by 11 percent in the same period. 

Property costs for the reporting period amounted to SEK -7,121 thousand (-8,300), a decrease of 14 percent compared to last year.

Other external costs totalled SEK -10,002 thousand (-7,376), which is an increase of 36 per cent compared to same period previous year. The increase is partly due to a provision for doubtful accounts receivables, which is SEK 3,319 thousand higher than last year. The provision is attributable to two clients in the C-View property, where there are some payment uncertainties.

KeyFacts Energy: Crown Energy South Africa country profile   l   Crown Energy Equatorial Guinea country profile   l   KeyFacts Energy: Crown Energy Madagascar country profile   l   KeyFacts Energy: Crown Energy Iraq country profile