Afentra finalizes acquisition of Azule in Angola

Azule acquisition summary

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 in accordance with the sales agreement between Azule Energy Angola Production BV (“Azule”) and Afentra’s wholly owned subsidiary, Afentra (Angola) Ltd, announced on July 19, 2023.

• The acquisition of Azule increases Afentra’s shares in Block 3/05 to 30% and Block 3/05A to 21.33%
• Payable cash consideration upon project completion of $28.4 million. Initial cash amount of $48.5 million less the impact of cash flow adjustments at the effective date of the transaction on October 1, 2022.
• The company inherits crude oil reserves of ~480,000 barrels
• Financial situation at the end:

  • Net debt is expected to be $46.2 million
  • Crude oil reserves are approximately 840,000 barrels

A short presentation has been uploaded to the Afentry website: https://afentraplc.com/investors/

Production update

Total gross production for the first four months of 2024 ending April 30, 2024 for units 3/05 and 3/05A averaged ~23,000 bopd (net: ~6,800 bopd). The Light Well intervention program, launched by the joint venture in 2023, will continue in 2024 with a further 45 interventions planned over two campaigns.

Lifting update

The company expects to sell the next crude oil cargo (~450,000 barrels) in June 2024.

Annual results 2023

The Company and its auditor BDO continue to review and audit the appropriate accounting treatment for the INA and Sonangol acquisitions completed in 2023. The Company expects to complete this work and announce annual results in early June.

Investor webinar presentation

Afentry’s management team will host a presentation to investors via the site’s Investor Meet Company platform Tue 11 Jun 2024 10:30 BST. During the presentation, management will provide more details on the significant growth potential of the Block 3/05 and 3/05A assets and the Company’s plans to utilize this potential.

The presentation is open to all current and potential shareholders. Questions can be submitted ahead of the event via the Investor Meet Company panel until 10 June 2024 at 09:00 BST or at any time during the live presentation.

Investors can register for free at Investor Meet Company and join the AFENTRA PLC meeting via:
https://www.investormeetcompany.com/afentra-plc/register-investor

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

Commenting on this update, CEO Paul McDade said:

“The completion of the Azule acquisition is the final step in the complex process of acquiring a significant 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 significant near-term exposure to world-class production and development assets. The next step, in close collaboration with our Joint Venture partners, is to deliver the full potential of these assets for the benefit of all our stakeholders, while reducing the carbon footprint of these assets.

As with the previous two transactions, the acquisition structure ensures that Afentra will benefit from the net cash flow from the assets during the closing process, which significantly reduces the amount of the cash payment upon completion of the transaction. I would like to thank Azula, ANPG and all other parties involved for their pragmatism and support throughout this complex process.

The Block 3/05 asset continues to perform well following the successful implementation of an ongoing work program aimed at optimizing production from existing wells. The completion of this transaction provides Afentra with a strong growth platform to pursue further attractive opportunities in Angola, as well as target markets in West Africa, as we continue our efforts to transform Afentra into a leading independent, Africa-focused company.”

Read the latest issue of OGV Energy magazine HERE

Published: 23/05/2024