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 year to 28th February 2021 the company reported revenue down 40% and a loss of 46,52c per share compared with a loss of 1,86c in the previous period. In a trading statement for the six months to the 31st of August 2021 the company estimated that it would make between a headline loss of 2,8c and a profit of 2,2c. This share has been suspended since 9th October 2020 because it has still not produced its financial statements for the year ended 28th February 2021.