Our opinion on the current state of EEL

Efora Energy (EEL) is an African oil and gas company incorporated in 1993 and listed on the JSE in October 1994. The company is involved in numerous projects from oil production to midstream and downstream distribution. It has operations in Egypt, Nigeria, the DRC, Zimbabwe and South Africa. Africoil is a subsidiary which distributes 45m litres of oil products monthly. It has two depots in Boland and Beitbridge. Most of its sales are in South Africa. In Egypt, the company owns the Mena International Petroleum Company which is developing the Lagia oil field in the Sinai Peninsula. In the DRC, the company owns 68% of Semliki which in turn owns 18,3% of block III in the North-East of the DRC bordering on Uganda. This is in an exploratory phase. In Nigeria, the company has a 50% joint venture with Energy Equity Resources (EER) to lift and trade Nigerian oil. In its results for the six months to 31st August 2021 (published on 27th November 2023) the company reported revenue down 95% and a headline loss of 0,32c per share compared with a loss of 25,08c in the previous period. This share has been suspended since 9th October 2020 because of delays in producing its financial statements.