REG - Afentra PLC - Annual Results for the Year Ended 31 December 2020
27/05/2021 07:00
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RNS Number : 9607Z Afentra PLC 27 May 2021
27 May 2021
AFENTRA PLC
ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2020
Afentra plc is today issuing its annual results for the year ended 31 December
2020.
OVERVIEW
Afentra plc ('Afentra' or the 'Company'), together with its subsidiary
undertakings (the 'Group'), is an upstream oil and gas Company listed on the
AIM market of the London Stock Exchange.
The Company has a refreshed strategy built around achieving scale through the
acquisition of both operated production assets and discovered resources
resulting from the accelerating energy transition in Africa, where the Company
and its new management has extensive operational experience. The Company
currently has the high potential onshore Odewayne exploration block that is
operated by Genel Energy, where its 34% interest is fully carried.
2020 SUMMARY
Operations
• Throughout 2020: Odewayne block, Somaliland - The
Company continued to support the Operator in progressing the technical
understanding of the block.
• Afentra continued to review its technical assessment
and outlook on block prospectivity.
Financial
• Cash resources net to the Group at 31 December 2020 of
$42.7 million (2019: $44.9 million).
• The Group remains debt free and fully funded for all
commitments.
• Adjusted EBITDAX(1): loss for the Group of $761k
(2019: $917k loss).
• 2020 focus on capital discipline, general and
administrative overheads ('G&A') expenses reduced by 15% to $2.2 million
(2019: $2.6 million).
Post year end
• 18 February 2021: Several institutional and high net worth
investors purchased the shares sold by Waterford Finance and Investment
Limited (equating to its entire 29.23% shareholding in the Company) and
Mistyvale Limited (equating to its entire 15.66% shareholding in the Company).
• 16 March 2021: Paul McDade and Ian Cloke join the
Board of Directors as CEO and COO respectively.
• 30 March 2021: Jeffrey MacDonald and Gavin Wilson join
the Board of Directors as Independent non-executive Chairman and Independent
non-executive Director respectively.
• 13 April 2021: The Company announced its intention to
change its name from Sterling Energy plc to Afentra plc and adopt new articles
of association. The proposed changes were approved at the General Meeting held
on 30 April 2021.
• 5 May 2021: Afentra plc launched and Anastasia Deulina
is appointed as Chief Financial Officer.
(1)defined within the definitions and glossary of terms
Commenting, CEO Paul McDade, said:
"The last few months have been truly transformational for the Company. I speak
for the whole management & Board as I express our excitement as we embark
upon our updated strategy targeting scale through the implementation of a buy
and build model, focused on the energy transition in Africa. In parallel to
our updated strategy we continue to work with our partners in Somaliland to
establish additional shareholder value from this existing early stage asset".
"I must also thank the Sterling Energy team who despite an extremely
challenging year have shown resilience and have, like our shareholders,
welcomed the new members to the team. We look forward to 2021 and progressing
our strategy as the new Afentra team."
For further information contact:
Afentra plc +44 (0)20 7405 4133
Paul McDade, CEO
Ian Cloke, COO
Anastasia Deulina, CFO
Buchanan (Financial PR) +44 (0)20 7466 5000
Ben Romney
Chris Judd
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
This announcement contains inside information as defined in Article 7 of the
Market Abuse Regulation No. 596/2014 and is disclosed in accordance with the
Company's obligations under Article 17 of those Regulations.
CHAIRMAN'S STATEMENT
Dear Shareholders
I am delighted to be providing the first statement in my role as Chairman, and
indeed the first statement for the Company in its new form as Afentra. Your
Company has undergone a complete transformation in recent months following the
arrival of the new executive team led by CEO Paul McDade. This transformation
has resulted in a significant shift in the shareholder register and an ongoing
restructuring of the Board. This process of change culminated in the recent
General Meeting where you approved the renaming of the Company to Afentra plc
which was followed by its successful relaunch.
The name Afentra, which stands for African Energy Transition, reflects the
Company's strategic imperative of capitalising on opportunities resulting from
the accelerating energy transition on the African continent. Afentra has been
established to support sustainable change in the African energy industry, a
sector that needs further responsible, well managed, independent operators.
The new Executive team have presented this very clear strategy for the Company
and it is fully supported by the Board.
As detailed in the recent launch communications, the structural changes in the
oil and gas industry across Africa present exciting opportunities for agile,
ambitious and credible operators such as Afentra, but they also present
significant risks and challenges to the environment and the socio-economic
impact for the countries and people of the continent if the transition is not
managed responsibly. This critical point is both the opportunity and purpose
of the business. Afentra has been established to support an efficient and
responsible energy transition on the continent that delivers positive outcomes
for all the stakeholders, including the investors who backed Afentra to
achieve these objectives. Indeed, a robust ESG agenda is embedded into the
core fabric of our business model and operating structure, as it reflects our
purpose and will support our ability to achieve our vision.
The energy transition globally is well documented and IOCs are changing their
business models as they pivot towards lower-carbon footprints, driven by
societal and investor pressure. This factor does not alter the current
importance of oil and gas within the energy mix and the requirement for them
to continue to be produced to meet global demand, enable transition and allow
the developing countries in Africa to continue to benefit from the revenues
they generate. In order to enable a responsible transition, credible operators
must position themselves as appropriate acquirers of these assets, so that the
assets and host governments can continue to realise the positive benefit and
impact of quality operators ensuring best practice, environmental stewardship
and transparent governance.
The Board is confident that it has an exceptional leadership team with a
proven track record for operational excellence, value creation and stakeholder
engagement across Africa. Their network amongst the target stakeholder
audiences of IOCs and host governments, coupled with their experience of
managing the sub-surface and above ground risks on the continent, represent
the strong foundation of Afentra's investment proposition. The Company has
developed a clear, straightforward, yet impactful, strategy that we believe
this team is uniquely positioned to execute.
The team are presently screening a pipeline of assets to identify
opportunities that meet the strategic criteria. It is the hope of the Board
that we will be able to update you on our first acquisition in the next 12
months and, rest assured, our priority will be to ensure we execute the right
deal for our shareholders.
These recent changes are exciting developments for the Company and I am wholly
confident that Afentra has a well-defined strategy tailored to the current and
future outlook for the industry and a leadership team with the requisite
experience, drive and capabilities to deliver long-term value for our
shareholders and positive outcomes for all the stakeholders involved in the
African energy transition.
I thank shareholders for their support through these changes and the Board
looks forward to engaging with all of you as we progress our strategy.
Jeffrey MacDonald - Chairman
CHIEF EXECUTIVE OFFICER'S STATEMENT
I would like to express how pleased I am to take on the role as your new CEO
and for the support that I have received from both long-term shareholders and
those who have more recently invested in our Company. I am very excited about
the journey we are embarking upon and the opportunities that the global energy
transition combined with the changes in the African upstream environment
present. We are determined to use these opportunities to transform (build)
Afentra into a responsible, well managed, independent upstream operator.
The global energy transition is rightly at the forefront of global
consciousness and the oil and gas industry is seeking to play its part in
terms of reducing carbon footprint and transparently communicating the impact
of its activities. Although climate change is rightfully the principle
consideration of the global energy transition, there are other key factors
that need to be considered to enable a smooth and responsible transition. We
need to ensure that the continued global demand for hydrocarbons can be
delivered in a responsible manner, and that the developing countries, whose
socio-economic development relies on these resources, can continue to benefit
from the associated revenues. This is particularly true in Africa, a continent
with vast discovered resources, where the population is growing fast and yet
where many hundreds of millions of people remain without access to reliable
power.
As the upstream industry in Africa progresses through its natural cycle,
assets will be divested by IOCs and there will be a requirement for credible
operators to acquire these assets. Our vision is to establish Afentra as a
leading pan-African operator with an unwavering commitment to operational and
subsurface excellence, environmental stewardship, transparent governance,
positive socio-economic impact, and strong sustainable shareholder returns.
To deliver this vision, Afentra has assembled a highly experienced leadership
team with a proven track record of oil and gas operations across Africa. This
team have witnessed previous industry transition cycles in both the North Sea
and Gulf of Mexico, this provides valuable insights into how to capitalise on
the African transition. A simple review of the operating landscape in the
North Sea today, versus twenty years ago, demonstrates the importance of many
smaller independents established specifically to capitalise on the North Sea
energy transition. The African industry transition is in its early stages, but
it is expected to mirror what has happened in the North Sea. I see Afentra
being a key player supporting a smooth transition to ensure the desired
outcomes for all stakeholders.
A key driver of our approach is to ensure the African countries can continue
to benefit from the positive impact of their natural resources through this
accelerating energy transition. This social aspect is not as well understood
or publicised, yet it is a critical factor when considering the broader
aspects of ESG and ethical investment. The environmental aspect of the global
energy transition is better understood, and Afentra will strive to balance
both the socio-economic and environmental implications of the energy
transition. Our approach is simple, we intend to position the Company as a
credible counterparty for IOCs to divest to, and a quality partner for host
governments to work with to enhance the benefits from their upstream assets.
Ultimately, we are seeking to acquire quality producing assets and discovered
resources that can be optimised through innovative operating techniques to
enhance production, extend field life, realise hidden value and reduce their
environmental impact. Through this diligent approach, Afentra can turn
"legacy" producing fields and discovered resources into highly profitable
assets capable of delivering strong cash flow for reinvestment and shareholder
returns.
The assets we are targeting are mid to late life producing assets or
discovered resources across Africa, with a particular focus on West Africa. We
are seeking operated positions, but will also consider non-operated
opportunities alongside credible operators with shared standards. We are
largely commodity agnostic, however anticipate that oil will be the main
emphasis given the opportunities we know to exist in our target markets. Our
goal is to announce a transaction in the next twelve months.
In parallel to the growth strategy we will continue to appraise our existing
asset in Somaliland with a view to establishing additional value on behalf of
shareholders. Given the asset profile is early stage exploration we need to
carefully consider its positioning within our stated strategy and ensure that
we maximise the value of this asset which benefits from a full carry by our
partner.
We see a clear market driver for our business model and believe we have
assembled the right team, with a clear and focused strategy, capable of
capitalising on this opportunity for the benefit of all stakeholders.
Importantly, we remain pragmatic about the challenges that are facing the oil
and gas industry and have factored these into the establishment of our
business model, to ensure we mitigate risks and meet stakeholder expectations.
I'd like to thank the Sterling Energy team that have endured a very difficult
2020 due to the challenges caused by the global covid pandemic, this was
combined by the uncertainties surrounding the changes within the Company. They
have shown dedication and professionalism throughout this period and have been
very supportive and welcoming to myself and the new members of the team. We
are all looking forward to working as the new Afentra team and share our
excitement about the journey we are embarking on together.
Paul McDade - Chief Executive Officer
OPERATIONS REVIEW
Since late 2015 the Company has exited non-core exploration portfolio assets
and removed outstanding liabilities, to provide a simpler and rejuvenated
platform for M&A led growth. The Group retains a fully carried exposure to
the frontier Odewayne block in Somaliland and a clear strategy for future
M&A growth.
SOMALILAND
Somaliland offers one of the last opportunities to target an undrilled onshore
rift basin in Africa. The Odewayne block, with access to Berbera deepwater
port less than a 100km to the north, is ideally located to commercialise any
discovered hydrocarbons. A 2D geophysical survey acquired in 2017 and
reprocessed in 2019, along with field data and legacy geological field
studies, are the focus of the Company's 2021 work programme to determine if a
Mesozoic age sedimentary basin is present in the block and its prospectivity.
Odewayne (W.I. 34%) Exploration block
Overview
This large, unexplored, frontier acreage position covers 22,840km(2), the
equivalent of c. 100 UK North Sea blocks. Exploration activity prior to the
2017 regional 2D seismic acquisition program has been limited to the
acquisition of airborne gravity and magnetic data and surface fieldwork
studies, with no wells drilled on block.
The Company's wholly owned subsidiary, Sterling Energy (East Africa) Limited
('SE(EA)L'), holds a 34% working interest in the PSA (fully carried by Genel
Energy Somaliland Limited for its share of the costs of all exploration
activities during the Third and Fourth Periods of the PSA).
The Odewayne production sharing agreement was awarded in 2005. It is in the
Third Period, with a 1,000km, 10km by 10km 2D seismic grid acquired in 2017 by
BGP. The Third Period has been further extended, through the 8th deed of
amendment. This data was reprocessed in 2019 and is currently being reviewed
after the disruption caused by Covid in 2020.
In 2H 2021 the Company will review the reprocessed 2D seismic data set in and
will update its technical assessment and outlook on block prospectivity
accordingly. Alongside the seismic reprocessing review, the Operator is
undertaking a number of work streams and it is anticipated that these will aid
the JV partnership in developing an appropriate forward work program to
further evaluate the prospectivity of the licence.
Outlook on buy and build strategy
In March 2021 the Company shifted focus to support a responsible energy
transition in Africa by establishing itself as a credible partner for
divesting IOCs and Host Governments. The Company is specifically targeting
producing assets and discovered resources in Africa. The focus will be on
operated positions but will also consider non-operated positions alongside
credible operators with shared standards.
FINANCIAL REVIEW
Selected financial data 2020 2019
Adjusted EBITDAX $million (0.8) (0.9)
Loss after tax $million (1.9) (1.6)
Year end cash net to the Group $million 42.7 44.9
Year end share price Pence 9.4 8.7
Non-IFRS measures
The Group uses certain measures of performance that are not specifically
defined under IFRS or other generally accepted accounting principles. These
non-IFRS measures include capital investment, debt and adjusted EBITDAX.
Income Statement
Group G&A decreased by 15% during the year to $2.2 million (2019: $2.6
million). The reduction in the Group's administrative overhead is in keeping
with the Board's 2020 mandate for cash preservation.
In 2020, a portion of the Group's staff costs and associated overheads have
been expensed as pre-licence expenditure ($1.2 million), or
capitalised/recharged ($74k) where they are directly assigned to capital
projects or recharged. This totalled $1.3 million in the year (2019: $1.4
million).
Interest received during the year was $326k (2019: $1.1 million). The
reduction year on year was as a result of the global pandemic amongst other
factors including, banks increasing their liquidity levels which resulted in a
reduction on deposit rates. Net finance income (finance income less finance
expenses) totalled $268k in the year (2019: $1.0 million).
The loss for the year was $1.9 million (2019: loss $1.6 million):
$' Million
Loss for year 2019 (1.6)
Decrease in G&A and pre-licence costs 0.4
Decrease in finance income (0.7)
Loss for year 2020 (1.9)
Group adjusted EBITDAX loss totalled $761k (2019: $917k loss):
2020 2019
$' Million $' Million
Loss after tax (1.9) (1.6)
Interest and finance costs (0.3) (1.0)
Depletion and depreciation 0.2 0.2
Pre-licence costs 1.2 1.4
Total EBITDAX (Adjusted) (0.8) (0.9)
The basic loss per share was 0.9 cents per share (2019: loss 0.7 cents per
share). No dividend is proposed to be paid for the year ended 31 December 2020
(2019: $nil).
Statement of financial position
At the end of 2020, non-current assets totalled $22.1 million (2019: $22.1
million) the majority of which relates to the Odewayne block ($21.2 million).
Net assets/total equity stood at $63.9 million (2019: $65.8
million).
Net current assets reduced to $42.5 million (2019: $44.5 million). At the end
of 2020 cash and cash equivalents totalled $42.7 million (2019: $44.9
million), the reduction being related to G&A overheads offset by interest
received.
Cash flow
Total net decrease in cash and cash equivalents in the year was $2.2 million
(2019: $1.5 million), a full reconciliation of which is provided in the
Consolidated Statement of Cash Flows.
During the year there were minimal cash investments on the Odewayne Block in
Somaliland due to the Group's interest being fully carried by Genel Energy
Somaliland Limited for its share of the costs during the Third and Fourth
Periods of the PSA.
Accounting Standards
The Group has reported its 2020 and 2019 full year accounts in accordance with
international accounting standards in conformity with the requirements of the
Companies Act 2006.
Cautionary statement
This financial report contains certain forward-looking statements that are
subject to the usual risk factors and uncertainties associated with the oil
and gas exploration and production business. Whilst the Directors believe the
expectation reflected herein to be reasonable in light of the information
available up to the time of their approval of this report, the actual outcome
may be materially different owing to factors either beyond the Group's control
or otherwise within the Group's control but, for example, owing to a change of
plan or strategy. Accordingly, no reliance may be placed on the
forward-looking statements.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
31st December 2020 31st December 2019
$000 $000
Other administrative expenses (953) (1,108)
Pre-licence costs (1,221) (1,444)
Total administrative expenses (2,174) (2,552)
Loss from operations (2,174) (2,552)
Finance income 326 1,068
Finance expense (58) (116)
Loss before tax (1,906) (1,600)
Tax - -
Loss for the year attributable to the owners of the parent (1,906) (1,600)
Other comprehensive income/(expense) - items to be reclassified to the income
statement in
subsequent periods
Currency translation adjustments 7 (3)
Total other comprehensive income/(expense) for the year 7 (3)
Total comprehensive expense for the year attributable to the owners of
the parent (1,899) (1,603)
Basic and diluted loss per share (US cents) (0.9) (0.7)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Note 31st December 2020 31st December 2019
$000 $000
Non-current assets
Intangible exploration and evaluation assets 4 21,209 21,119
Property, plant and equipment 844 975
22,053 22,094
Current assets
Trade and other receivables 193 250
Cash and cash equivalents 42,674 44,851
42,867 45,101
Total assets 64,920 67,195
Equity
Share capital 28,143 28,143
Currency translation reserve (197) (204)
Retained earnings 35,945 37,844
Total equity 63,891 65,783
Current liabilities
Trade and other payables 209 439
Lease liability 205 208
414 647
Non-current liabilities
Lease liability 581 735
Long-term provision 34 30
615 765
Total liabilities 1,029 1,412
Total equity and liabilities 64,920 67,195
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Currency
Share translation Retained
capital reserve earnings Total
$000 $000 $000 $000
At 1 January 2019 28,143 (201) 39,444 67,386
Loss for the year - - (1,600) (1,600)
Currency translation adjustments - (3) - (3)
Total comprehensive expense for the year attributable to the owners of the - (3) (1,600) (1,603)
parent
At 31 December 2019 28,143 (204) 37,844 65,783
Adjustment to IFRS 9 - - 7 7
At 1 January 2020 28,143 (204) 37,851 65,790
Loss for the year - - (1,906) (1,906)
Currency translation adjustments - 7 - 7
Total comprehensive expense for the year attributable to the owners of the - 7 (1,906) (1,899)
parent
At 31 December 2020 28,143 (197) 35,945 63,891
CONSOLIDATED STATEMENT OF CASH FLOWS
Note 2020 2019
$000 $000
Operating activities:
Loss before tax (1,906) (1,600)
Depreciation, depletion & amortisation 193 191
Finance income and gains (326) (1,068)
Finance expense and losses 59 55
Operating cash flow prior to working capital movements (1,980) (2,422)
Decrease in trade and other receivables 57 140
Decrease in trade and other payables (230) (35)
Increase in provision 4 30
Net cash flow used in operating activities (2,149) (2,287)
Investing activities
Interest received 326 1,068
Purchase of property, plant and equipment (12) -
Exploration and evaluation costs 4 (90) (26)
Net cash used in investing activities 224 1,042
Financing activities
Principal paid on lease liability (237) (201)
Interest paid on lease liability (46) (54)
Net cash used in financing activities (283) (255)
Net decrease in cash and cash equivalents (2,208) (1,500)
Cash and cash equivalents at beginning of year 44,851 46,312
Effect of foreign exchange rate changes 31 39
Cash and cash equivalents at end of year 42,674 44,851
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. General information
The results announcement is for the year ended 31 December 2020.
The financial information set out above does not constitute the company's
statutory accounts for the years ended 31 December 2020 or 2019, but is
derived from those accounts. Statutory accounts for 2019 have been delivered
to the Registrar of Companies and those for 2020 will be delivered following
the Company's Annual General Meeting. The auditors have reported on those
accounts; their reports were unqualified, did not draw attention to any
matters by way of emphasis without qualifying their report and did not contain
statements under s498(2) or (3) Companies Act 2006.
While the financial information included in this announcement has been
prepared in accordance with the recognition and measurement criteria of
International Financial Reporting Standards (IFRSs), this announcement does
not itself contain sufficient information to comply with IFRSs.
The Annual Report and Accounts and the notice for the Company's Annual General
meeting, which is to be held at 10.00 a.m. on 30 June 2021, will be posted to
Shareholders on 1 June 2021.
2. Going concern
The Group business activities, together with the factors likely to affect its
future development, performance and position are set out in the Operations
review. The financial position of the Group and Company, its cash flows and
liquidity position are described in the Financial Review.
The Group has sufficient cash resources for its working capital needs and its
committed capital expenditure programme at least for the next 12 months. As a
consequence, the Directors believe that both the Group and Company are well
placed to manage their business risks successfully despite the ongoing
pandemic and uncertain economic outlook.
The Directors have, at the time of approving the financial statements, a
reasonable expectation that the Group has adequate resources to continue in
operational existence for the foreseeable future. This assessment has been
made by the Directors who remain confident the Group has sufficient cash
resources at the date of signing the annual report to meet its liabilities as
they fall due for a period of at least 12 months from the date of signing
these financial statements, and notwithstanding the impact that COVID-19 has
had, and continues to have internationally. The Directors believe that the
Group is in a strong position to absorb any potential impact on the Group
arising from COVID-19, and thus, they continue to adopt the going concern
basis of accounting in preparation of the financial statements.
3. Operating segments
Africa operations in 2020 focused on exploration and appraisal activities in
Somaliland. The UK corporate office is a technical and administrative cost
centre focused on new ventures. The operating results of each segment are
regularly reviewed by the Board of Directors in order to make decisions about
the allocation of resources and to assess their performance.
The following tables present income, expense and certain asset and liability
information regarding the Group's operating segments for the year ended 31
December 2020 and for the year ended 31 December 2019.
Corporate Africa Total
2020 2019 2020 2019 2020 2019
$000 $000 $000 $000 $000 $000
Other administrative expenses (953) (1,108) - - (953) (1,108)
Pre-licence costs (1,221) (1,444) - - (1,221) (1,444)
Loss from operations (2,174) (2,552) - - (2,174) (2,552)
Finance income 326 1,068 - - 326 1,068
Finance expense (58) (116) - - (58) (116)
Segment loss before tax (1,906) (1,600) - - (1,906) (1,600)
Other segment information
Depreciation 193 191 - - 193 191
Segment assets and liabilities
Non-current assets (1) 844 975 21,209 21,119 22,053 22,094
Segment assets (2) 42,867 45,101 - - 42,867 45,101
Segment liabilities (3) (1,016) (1,396) (13) (16) (1,029) (1,412)
(1 )Segment non-current assets of $21.2 million in Somaliland (2019: $21.1
million).
(2 )Corporate segment assets include $42.7 million cash and cash equivalents
(2019: $44.9 million). Carrying amounts of segment assets exclude investments
in subsidiaries.
(3 )Carrying amounts of segment liabilities exclude intra-group financing.
4. Intangible Exploration and Evaluation assets
Group
$000
Net book value at 1 January 2019 21,093
Additions during the year 26
Net book value at 31 December 2019 21,119
Additions during the year 90
Net book value at 31 December 2020 21,209
Group intangible assets at the year end 2020:
Odewayne PSA, Somaliland: SE(EA)L 34%, Genel Energy Somaliland Limited 50%,
Petrosoma 16%
Classified as a joint arrangement in accordance with IFRS 11.
5. Subsequent events
Changes in major shareholdings and Board appointments
On the 18 February 2021 the Company announced that a number of institutional
and high net worth investors had agreed to purchase the following shares:
Waterford Finance & Investment Limited - 64,315,517 ordinary shares in the
Company (equating to its entire 29.23% shareholding in the Company); and
Mistyvale Limited - 34,467,790 ordinary shares in the Company (equating to its
entire 15.66% shareholding in the Company).
The Company and Waterford were parties to a Relationship Agreement dated 10
June 2016. Following the sale of Waterford's ordinary shares in the Company as
set out above, the Relationship Agreement automatically terminated.
On the 16 March 2021 the Company announced that Paul McDade had joined as the
Company's Chief Executive Officer with Ian Cloke joining as Chief Operating
Officer. The Company's existing CEO, Mr. Tony Hawkins, stepped down from the
Board.
On the 30 March 2021 the Company announced the appointments of Jeffrey
MacDonald as Independent non-executive Chairman and Gavin Wilson as
Independent non-executive Director. These appointments replaced the
non-executive Chairman (Michael Kroupeev) and non-executive Directors (Leo
Koot and Ilya Belyaev).
On the 13 April 2021 the Company announced its intention to change its name to
Afentra plc and adopt new articles of association. The proposed change of name
and new articles were approved at a General Meeting held on 30 April 2021.
On the 5 May 2021 Afentra plc is launched and the Company announced the
appointment of Anastasia Deulina as Chief Financial Officer.
DEFINITIONS AND GLOSSARY OF TERMS
$ US dollars
Companies Act or Companies Act The Companies Act 2006, as amended
2006
2D Two dimensional
AIM AIM, a SME Growth market of the London Stock Exchange
AGM Annual general meeting
Articles The Articles of Association of the Company
Board The Board of Directors of the Company
Company Afentra plc
Directors The Directors of the Company
E&E Exploration and evaluation assets
E&P Exploration and production
EBITDAX (Adjusted) Earnings before interest, taxation, depreciation, depletion and amortisation,
impairment, share-based payments, provisions, and pre-licence expenditure
EITI Extractive industries transparency initiative
Farm-in & farm-out A transaction under which one party (farm-out party) transfers part of its
interest to a contract to another party (farm-in party) in exchange for a
consideration which may comprise the obligation to pay for some of the
farm-out party costs relating to the contract and a cash sum for past costs
incurred by the farm-out party
FCA Financial Conduct Authority of the United Kingdom
G&A General and administrative
G&G Geological and geophysical
GBP Pounds sterling
Genel Energy Genel energy somaliland limited
Group The Company and its subsidiary undertakings
HSSE Health, Safety, Security and Environment
hydrocarbons Organic compounds of carbon and hydrogen
IAS International accounting standards
IFRS International financial reporting standards
IOCs International oil company
JV Joint venture
k Thousands
km Kilometre(s)
km(2) Square kilometre(s)
KPIs Key performance indicators
lead Indication of a potential exploration prospect
London Stock Exchange or LSE London stock exchange plc
LTIP Long-term incentive plan
M&A Mergers and acquisitions
m Metre(s)
OECD Organisation for Economic Cooperation and Development
Ordinary Shares Ordinary shares of 10 pence each
Petroleum Oil, gas, condensate and natural gas liquids
Petrosoma Petrosoma Limited (JV partner in Somaliland)
Prospect An area of exploration in which hydrocarbons have been predicted to exist in
economic quantity. A group of prospects of a similar nature constitutes a
play.
PSA Production sharing agreement
QCA Code Corporate Governance Code for Small and Mid-Size Quoted Companies 2018
Reserves Reserves are those quantities of petroleum anticipated to be commercially
recoverable by application of development projects to known accumulations from
a given date forward under defined conditions. Reserves must satisfy four
criteria; they must be discovered, recoverable, commercial and remaining based
on the development projects applied. Reserves are further categorised in
accordance with the level of certainty associated with the estimates and may
be sub-classified based on project maturity and/or characterised by
development and production status
Seismic Data, obtained using a sound source and receiver, that is processed to provide
a representation of a vertical cross-section through the subsurface layers
Shares 10p ordinary shares
Shareholders Ordinary shareholders of 10p each in the Company
Subsidiary A subsidiary undertaking as defined in the 2006 Act
United Kingdom or UK The United Kingdom of Great Britain and Northern Ireland
Waterford Waterford Finance and Investment Limited
Working Interest or WI A Company's equity interest in a project before reduction for royalties or
production share owed to others under the applicable fiscal terms
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