Crown Energy to withdraw from South African joint venture
Crown Energy AB (publ) has held 10% equity of a joint venture for Block 2B offshore in South Africa for oil exploration.
In summer 2022, the Company announced that the rig was mobilised and on its way to the well site and drilling commenced in October. The drilling activities did not encounter hydrocarbons in any commercial quantities and in November it was announced that the well was to be plugged and abandoned as planned.
Crown Energy has therefore now according to the Joint Operating Agreement sent a withdrawal letter to the JV, meaning that the other owners will take over Crown’s 10 % in the project. This will not have any economic consequences for Crown Energy as Crown has already impaired the value of this asset.
Yoav Ben-Eli, CEO of Crown Energy:
“We have decided to change Crowns strategy from oil and gas into sustainable businesses such as MedTech. To divest the South African holding is logical from both economic and strategic purposes.”
More information
Contact person: Yoav Ben-Eli, CEO Crown Energy AB +46 76 312 9793
ABOUT CROWN ENERGY
Crown Energy is an international group with a history of providing customised solutions for housing, offices and associated services, as well as oil and gas exploration in Africa and the Middle East. The group is now dedicated to a strategy shift into a new and more socially and environmentally responsible business direction contributing to positive change, with a focus on the medical technology industry and on improving our green footprint. For more information, please visit www.crownenergy.se