REG - Afentra PLC - Completion of Azule Acquisition

AfentraAnnouncement

23/05/2024 07:00

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RNS Number : 5535P  Afentra PLC  23 May 2024

 

 

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/ (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
(https://urldefense.com/v3/__https:/www.investormeetcompany.com/afentra-plc/register-investor__;!!H_q-o1I4kFo!hPfpnp1SfltKHTZeuf8fkrggEm0Y9dlJZbGvwz8HZUknBRmnE-YGSjRmmshDeGdEcmSAM9QT3hw3OD9YoiQ369ENJZhEYoVfAMNtHhgbkA$)

 

The investor presentation and webinar playback will be made available on the
company website on 11 June: https://afentraplc.com/investors/
(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.

 

 

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