REG - Afentra PLC - Block 3/05 Licence Extension

AfentraAnnouncement

17/05/2023 12:30

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RNS Number : 7580Z  Afentra PLC  17 May 2023

17 May 2023

AFENTRA PLC

 

Ministerial Approval of Block 3/05 Licence Extension

 

Afentra plc ('Afentra' or the 'Company') provides the following update
regarding the previously announced Angolan acquisitions.

 

Sonangol Acquisition Update

We are pleased to confirm that an Executive Decree to formally approve the
period of the Block 3/05 licence extension, extending the production sharing
agreement ('PSA') to 31 December 2040, has been published in the Diário da
República. The recent agreement between the Block 3/05 JV partners and ANPG
(the Angolan Oil & Gas regulator) on the licence extension terms, as
communicated on 10 May 2023, will now allow these improved fiscal terms
associated with the extension to be progressed towards formal approval.

 

Approval of the licence extension term satisfies a key condition precedent
('CP') under the Sonangol Sale and Purchase Agreement ('SPA'). Sonangol, as
seller, is now in the process of obtaining the requisite government approvals
for the transaction, the key outstanding CP. We remain on track to complete by
30 June 2023.

 

INA Acquisition Update

As previously advised on 10 May 2023, the successful licence extension
satisfies the condition in the INA-Industrija d.d. ('INA') SPA for the payment
of $10m of contingent consideration to INA. This $10m had previously been set
aside into an escrow deposit upon completion of the INA Acquisition.

 

The Company looks forward to providing shareholders with further updates in
due course.

Commenting on the update, CEO Paul McDade said:

"Approval of the Block 3/05 licence extension represents a major milestone
towards completion of the Sonangol transaction. We are pleased with the
progress made in recent weeks and continue to expect completion of this
transaction to occur within our previously guided timeline."

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

 

Peel Hunt LLP (Nominated Advisor and Joint Broker) +44 (0)20 7418 8900

Richard Crichton

Paul Gillam

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 4% non-operated interests in
the producing Block 3/05 and adjacent development Block 3/05A offshore Angola
in the Lower Congo Basin. In addition, Afentra maintains a 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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