While we are waiting for news, a snippet describing of the...

While we are waiting for news, a snippet describing of the unbelievable offshore exploration 3-act drama and brinkmanship going on in the southern basin in neighboring south africa.
Thank goodness Namibia is relatively straightforward compared to this sh!tshow;
Source Fit Investment Ideas via CEO:CA;

Over the last two years, the South African government has failed in the energy sector with rolling blackouts and very little progress on offshore oil and gas exploration, especially compared to Namibia next door.
The South African Energy Minister Mantashe (recently reappointed) has been promoting the gas transition publicly, and has made no progress with oil and gas, even getting tied up in court with Shell (SHEL) and Impact over foreign-funded environmental protests to offshore exploration.
Moreover, the President has still not signed the energy bill that was approved by the parliament several weeks ago and has been promised for about a decade.
Finally, TotalEnergies' application for the Production Right for Block 11B/12B, filed more than two years ago, has still not been granted, delayed by TotalEnergies' concerns about protests on its environmental impact assessment, now due August 30. CNR clearly lost patience, and the asset was never really core to their mainly Canadian oil business. But is it core to TotalEnergies?
. . . .
I think it can play out in two ways:
1. TotalEnergies is bluffing and remains operator of the block with all the noise about withdrawing just a negotiating tactic to put pressure on the new South African Government to finalise the gas off-take agreement and approve the Production Right; or
2. Everybody withdraws from Block 11B/12B except Africa Energy/Main Street, which will get 100% of the block for free. AEC’s largest shareholder is now Impact, which is controlled by Johnny Copelyn, a white South African billionaire who is a former member of Parliament and now CEO of HCI, a black-empowered South African business conglomerate focused on hotels and casinos.He is very well-connected in SA and is the best placed to execute the project long-term. I guess this is why the Lundin family passed the baton to him and stepped away from AEC.

It may take a bit longer than expected, but sources say Copelyn sees Block 11B/12B as a patriotic mission to supply South Africa with much-needed domestic gas. A 100% stake in Block 11B/12B should motivate him to achieve this.At the moment, I believe option 1 is more likely.

TotalEnergies declared last week to the South African government that they are in fact staying in Block 11B/12B, no doubt to buy government goodwill for their efforts to explore for oil off the West Coast of South Africa. They plan to drill soon in the offshore South African blocks on trend with their large discoveries offshore Namibia in the Orange Basin where Impact (Johnny Copelyn) is their partner.
In the article published on Saturday, Thulebona Nxumalo, an official at the National Energy Regulator of South Africa is quoted:“We contacted them (TotalEnergies) to try and get clarification about what is it that is happening there. And what they indicated is that they had initially planned to exit but following engagements that they’ve had with government and other stakeholders, they’ve decided to stay. So, it sounds like they will be staying for now on that Brulpadda project,”
SourceFurther, see the PGS meeting link and listen from time stamp 1:05. The Minister says TotalEnergies confirmed that they are staying. Of course, this is a statement that may change in the future.In summary, we believe the AEC investment is not lost. We think the Block 11B/12B gas development will happen. There is a lot of gas there, and South Africa clearly needs the gas. If TotalEnergies stays, it will happen faster. If they do not, it will take more time, but it could happen with more upside for AEC shareholders under Johnny Copelyn’s lead.

The risk I see is Russian involvement. If Gazprombank invests in the nearby Block 9 infrastructure with PetroSA, no one will be able to use it because of US sanctions. I have no information that this is what is happening, but it is a risk.Last year, Gazprombank won a tender for financing the reconstruction of the Mossel Bay gas-to-liquids plant, which is now shutdown due to lack of gas feedstock from the depleted Block 9 offshore fields.The tender was widely criticised and based on suspicious conditions whereby all other bidders were eliminated. After public criticism, the tender went quiet, and it could be cancelled under the new coalition government. The final investment decision was due by April, but nothing has been announced.

ConclusionThe best case in terms of timing is that TotalEnergies stays, gets the Production Right by the end of the year, and the whole project moves forward. Africa Energy is a great investment in that scenario, especially at today’s depressed share price and with all its funding secured from shareholder loans.
If it goes back to 3 SEK, where it was trading when the Production Right application was filed, you are looking at a 15 times return!The alternative is that South Africa continues to stall the gas price negotiation or Gazprombank stays involved in the block next door, forcing a more expensive development that cannot rely on the Block 9 infrastructure.
That would result in everybody withdrawing except Africa Energy/Main Street, which would control 100% of the block for free. In that situation, we still believe that the project will happen, but it will take longer.