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REG - Afentra PLC - Acquisition Update

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RNS Number : 5094A  Afentra PLC  03 February 2022

3 February 2022

 

AFENTRA PLC - Acquisition Update

Negotiations continue with Sonangol; shares remain suspended

Afentra plc ('Afentra' or the 'Company') confirms that negotiations with
Sonangol E.P ('Sonangol')(1) to purchase interests in Block 3/05 and Block 23
(the "Acquisition") in Angola have continued into the new year. This follows
the announcement on 8 October 2021 that the Company had submitted a
non-binding Expression of Interest for the two blocks and the subsequent
suspension of its shares.

Since submitting the Expression of Interest, Afentra has been engaged in
negotiations with Sonangol to reach agreement on the detailed terms of the
transaction.  These negotiations are ongoing but there is, however, no
guarantee at this stage that an agreement between the two companies will be
reached. The Acquisition would be subject to satisfactory completion of the
necessary due diligence and agreement of a sale and purchase agreement with
Sonangol.

If Afentra ultimately proceeds with the Acquisition, it would be classified as
a reverse takeover transaction in accordance with Rule 14 of the AIM Rules for
Companies. Trading in Afentra shares will remain suspended until either the
publication of an AIM admission document, or until confirmation is given that
Afentra's participation in the bid process has ceased.

Whilst the timeline of the Sonangol sales process has been extended beyond the
previously expected timetable, this has not diverted Afentra from the pursuit
of other production assets in West Africa. The Company continues to appraise
multiple acquisition opportunities that support its growth strategy in terms
of acquiring assets across West Africa with solid low-cost production, proven
reserves and significant upside.  The Company remains disciplined in its
screening process to ensure all targets meet the operational, commercial and
environmental factors that comprise its focussed acquisition criteria.

The Company will make further announcements as appropriate.

Paul McDade, Chief Executive Officer, Afentra plc, commented today:

"We are pleased that we were selected by Sonangol to negotiate for Block 3/05
and Block 23 in Angola, and have been working diligently to find a mutually
attractive outcome for both parties.

Given our ambition to build an African business of scale, we also remain
focussed on identifying additional value-accretive opportunities across West
Africa and are engaged in a number of active acquisition processes. We
continue to screen opportunities in jurisdictions that we know well and look
forward to updating the market at the appropriate time on the first deal for
the Company."

 

Notes:

(1)In June 2021 Sonangol, Angola's national oil company, initiated an asset
sales process to divest some of its interests in eight blocks across its
portfolio. Afentra submitted a non-binding expression of interest on 20
September 2021 and on 7 October 2021 was announced as one of six bidders on
Block 03/05 and one of two on Block 23.

 

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

 Jon Krinks

 James Husband

 Peel Hunt LLP (Nominated Advisor and Joint Broker)

 +44 (0)20 7418 8900

 Richard Crichton

 David McKeown

 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 a current carried interest
 in the Odewayne Block onshore southwestern Somaliland.

 

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