13 March 2024
AFENTRA PLC
Company
update
Afentra plc ('Afentra' or the
'Company') (AIM: AET), the upstream oil and gas company focused on
acquiring production and development assets in Africa, provides the
following update on its operations:
Operational Update
Production performance on both Block
3/05 and 3/05A has been strong year to date with combined gross
average production of ~23,700 bopd (Net: ~6,995 bopd1)
for the period to the end of February 2024. The next program of
Light Well Interventions is underway and we expect these to support
current production levels.
The Company sold its first 2024
cargo of 450,000 bbls of crude oil in February 2024. The sales
price inclusive of the Brent premium was $85/bbl, generating
pre-tax sales2 of $38.2 million
to Afentra.
Onshore License Round
Following the announcement by ANPG,
which confirmed Afentra as preferred bidder for a 45% non-operated
interest in both KON 15 and KON 19 onshore Angola, the
Company is now reviewing the license documentation which will be
negotiated over the coming months.
Government Approval of Azule Acquisition
Afentra has received approval from
the Angolan Competition Authority for the acquisition from Azule
Energy Angola Production B.V. ('Azule') of a 12% non-operating
interest in Block 3/05 and a 16.33% non-operating interest in Block
3/05A, offshore Angola (the 'Azule Acquisition') pursuant to a sale
and purchase agreement between Azule and Afentra's wholly-owned
subsidiary, Afentra (Angola) Ltd, dated 19 July 2023.
The Company awaits approval from the
Minister of Mineral Resources, Petroleum and Gas and it is
therefore now expected that the transaction will be completed in 2Q
2024. Afentra continues to benefit from the asset cashflow from the
effective date of October 2022 and upon the completion of the
transaction Afentra will provide details on the financing of the
final completion payment, which will be positively impacted by the
asset cashflow.
Commenting on the update, CEO Paul McDade
said:
"The strong performance of the Block
3/05 and 3/05A assets has continued into 2024 and highlights the
significant upside potential of these assets. We expect the Angolan
government's approval of the Azule Acquisition to be given in the
coming weeks, and this will enable us to proceed with the
completion of our third transaction in the country, providing
Afentra with meaningful exposure to both of these quality assets.
In the meantime, we continue to benefit from the strong asset
cashflows from both our existing interests and the Azule interests
and this will be reflected in the final payment upon completion of
Azule Acquisition."
1 Net production post completion of the Azule
transaction
2 The sales revenue is subject to Petroleum Income Tax (PIT)
which represents approximately 7% of sales revenue.
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 18%
non-operated interest in the producing Block 3/05 and 4%
non-operated interest in the adjacent development Block 3/05A
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.