23 May 2024
AFENTRA
PLC
Completion of Azule
Acquisition
Summary of Azule Acquisition
Afentra plc ('Afentra' or the
'Company') is pleased to announce the completion of the acquisition
of a 12% non-operating interest in Block 3/05 and a 16%
non-operating interest in Block 3/05A offshore Angola (the "Azule
Acquisition") . This is pursuant to the sale and purchase agreement
between Azule Energy Angola Production B.V.
('Azule') and Afentra's wholly-owned subsidiary, Afentra (Angola)
Ltd, announced on the 19 July 2023.
· The
Azule acquisition increases Afentra's interest in Block 3/05 to 30%
and in Block 3/05A to 21.33%
· Payable cash consideration at completion of $28.4million.
Initial cash consideration of $48.5m reduced by impact of cash flow
adjustments as of the transaction effective date of 1 October
2022
· Company inherits crude oil stock ~480,000 bbls
· Financial position at completion:
o Net
Debt is expected to be $46.2m
o Crude oil stock of around 840,000 bbls
A short presentation has been
uploaded to the Afentra website: https://afentraplc.com/investors/
Production Update
Combined gross production for the
first four months of 2024 ending 30 April 2024 for Blocks 3/05 and
3/05A has averaged ~23,000bopd (Net: ~6,800, bopd). The Light Well
Intervention programme, commenced by the joint venture during 2023,
continues into 2024 with a further 45 interventions planned over
two campaigns.
Lifting Update
The Company expects to sell its next
cargo of crude oil (~450,000 bbls) in June 2024.
Annual Results 2023
The Company and it's auditor, BDO,
continue to review and audit the appropriate accounting treatment
relating to the INA and Sonangol acquisitions completed in 2023.
The Company expects this work to be completed and the annual
results issued in early June.
Investor Webinar Presentation
Afentra's management team will host
an investor presentation via the Investor Meet Company platform on
Tuesday 11 June 2024 10:30
BST. During the presentation management will provide more
details of the significant upside potential of Block 3/05 and 3/05A
assets and the Company's plans to realise that
potential.
The presentation is open to all
existing and potential shareholders. Questions can be submitted
pre-event via your Investor Meet Company dashboard up until 10 Jun
2024, 09:00 BST, or at any time during the live
presentation.
Investors can sign up to Investor
Meet Company for free and add to meet AFENTRA PLC via:
https://www.investormeetcompany.com/afentra-plc/register-investor
The investor presentation and webinar
playback will be made available on the company website on 11
June: https://afentraplc.com/investors/
Commenting on the update, CEO Paul McDade
said:
"The completion of the Azule
Acquisition is the final step in the complex process of acquiring a
material equity position in both Block 3/05 (30%) and Block 3/05A
(21.33%) through three separate transactions. We have now achieved
our first goal of having significant exposure to these world-class
production and near-term development assets. The next step, working
closely with our Joint Venture partners, is to deliver the full
potential of these assets for the benefit of all of our
stakeholders while also reducing the carbon footprint of the
assets.
As with the previous two
transactions the acquisition structure ensures that Afentra
benefits from the net cash flow from the assets while working
through the completion process, significantly reducing the cash
payment at completion. I would like to thank Azule, ANPG and all
the other parties involved for their pragmatism and support through
this complex process.
The Block 3/05 asset continues to
perform strongly following the successful implementation of an
ongoing work programme designed to optimise production from the
existing wells. The completion of this transaction presents a
strong growth platform for Afentra to capitalise on further
compelling opportunities in Angola as well as in target markets in
West Africa as we seek to build Afentra into a leading African
focused independent."
For
further information contact:
Afentra plc +44 (0)20 7405 4133
Paul McDade, CEO
Anastasia Deulina, CFO
Buchanan (Financial PR) +44 (0)20 7466 5000
Ben Romney
Barry Archer
George Pope
Peel Hunt LLP (Nominated Advisor and Joint Broker) +44 (0)20
7418 8900
Richard Crichton
David McKeown
Georgia Langoulant
Tennyson Securities (Joint Broker) +44 (0)20 7186
9033
Peter Krens
About Afentra
Afentra plc (AIM:AET) is an upstream
oil and gas company focused on opportunities in Africa. The
Company's purpose is to support a responsible energy transition in
Africa by establishing itself as a credible partner for divesting
IOCs and Host Governments. Afentra has an
30% non-operated interest in the producing Block 3/05 and a 21.33%
non-operated interest in the adjacent development Block 3/05A and a
40% non-operating interest in the exploration Block 23, all
offshore Angola in the Lower Congo Basin. Afentra has a current carried interest in the Odewayne Block
onshore southwestern Somaliland.
Inside Information
This announcement contains inside
information for the purposes of article 7 of Regulation 2014/596/EU
(which forms part of domestic UK law pursuant to the European Union
(Withdrawal) Act 2018) ('UK MAR'). Upon publication of this
announcement, this inside information (as defined in UK MAR) is now
considered to be in the public domain. For the purposes of UK MAR,
the person responsible for arranging for the release of this
announcement on behalf of Afentra is Paul McDade, Chief Executive
Officer.