Massive increase in Energy Africa turnover.

Position:Energy Africa Ltd

Energy Africa Ltd., the South African based oil and gas exploration and production group with interests in West and South Africa and the North Sea, which is listed on the Johannesburg and Luxembourg stock exchanges, has announced a 92% increase in turnover, from R154.2m to R295.6m for the year ended August 1997.The increase reflected a 67% increase in production, 10% higher average oil price per barrel realised of $18.31, and a 14% fall in the R/$ exchange rate.

Cash inflow from operations increased by 70% to R194.8m from R114.8m in 1996 and reflected the improved operating income before deduction of exploration costs written off, and the movement in working capital.

Energy Africa's net income for the period was R16.8m (1996: excluding exceptional items, net loss of R5.9m). Earnings per share, excluding exceptional items, rose from a loss of 7.9cents to a positive 17.6cents.

Managing director Mr John Bentley said that highlights of the year had included the Oribi field coming into production offshore South Africa, a further discovery made in Angola Block 2/92 and a major petroleum partnership signed with the government of Gabon. In addition, feasibility studies for development of the Kudu field were initiated.

"The exploration projects acquired during the last year are all new licences with limited initial work commitments (Durban basin offshore South Africa; Cl-102 offshore Cote d'Ivoire; Block 9 in the Kwanza basin, offshore Angola). Should they be successful they will be providing drilling opportunities in 1999 and 2000.

"Our partnership with the government of Gabon gives Energy Africa access to several small to medium sized field developments and exploration upside. This is a demonstration of...

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