REG - Afentra PLC - Publication of Admission Document and Notice of GM

AfentraAnnouncement

10/08/2022 07:00

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RNS Number : 4785V  Afentra PLC  10 August 2022

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.

 

10 August 2022

AFENTRA PLC

Publication of Admission Document and Notice of General Meeting

Afentra plc ('Afentra' or the 'Company'), an upstream oil and gas company
listed on AIM and focused on acquiring production and development assets in
Africa, is pleased to announce that further to the announcement made on 28
April 2022 regarding the proposed acquisition of interests in Block 3/05 and
Block 23 (the 'Acquisition') from Sonangol Pesquisa e Produço S.A.
('Sonangol'), an Admission Document in relation to the Acquisition and Notice
of General Meeting to approve the Acquisition will be posted to shareholders
today and is available to download from the Company's website.

Following the publication of the Admission Document, the Company anticipates
that the suspension of the trading in the Company's shares will be lifted and
that trading in the Company's Ordinary Shares will recommence at 8.00am BST
this morning.

The General Meeting will be held electronically on https://web.lumiagm.com/
(https://web.lumiagm.com/) at 2pm on 30(th) August 2022.

Afentra Strategy Overview

·      Launched in May 2021 with strategic intent to:

o  support a responsible oil & gas industry transition in Africa

o  capitalise on opportunities resulting from the energy transition in Africa

o  create long-term value for all stakeholders

·      Announced two strategically consistent and complementary
transactions in Angola that:

o  deliver a balanced cash flow generative portfolio of assets with
significant opportunities for future reserves and production growth

o  provide an opportunity to establish a long-term relationship with Sonangol

o  enable Afentra to influence a broad and positive ESG impact

o  creates a strong foundation for future transactions in Angola

·      Continue to pursue its material growth strategy by:

o  actively screening multiple opportunities across the region

o  supporting the increasingly pragmatic narrative for a just and responsible
energy transition for the African continent

Angolan Acquisitions

·      Provide a foundation for Afentra's strategy to deliver material
value from mature long-life assets with opportunities for low-cost incremental
investment

·      Competent Persons Report published, gross 2P reserves increased
to 115 million barrels

o  Net 2P reserves of 27.7 million barrels

o  Net 1H 2022 production of c.4,700 bbl/day net to Afentra

o  Core 2P reserves valuation of c.$185 million(1) with significant upside
potential

·      Attractive low-cost entry into a positive cash flow asset:

o  Implied acquisition cost of c.$3.6/2P bbl(2)

o  Average annual FCF net to Afentra of c.$36 million @ $75/bbl over next 5
years

·      Transactions will be financed through cash on balance sheet and
committed five-year RBL and working capital facility with Trafigura

o  Up to $75 million RBL facility(3); 8% margin over 3-month SOFR

o  Up to $30 million revolving working capital facility; 4.75% margin over
1-month SOFR

Re-admission process and key timings

·      Resumption of trading, and commencement of dealings on AIM of the
Company's existing Ordinary Shares expected to become effective at 8:00am

·      Admission Document available to download from the Company's
website in accordance with the AIM Rules:
https://afentraplc.com/wp-content/uploads/2022/08/Admission-Document-and-Notice-of-General-Meeting.pdf
(https://afentraplc.com/wp-content/uploads/2022/08/Admission-Document-and-Notice-of-General-Meeting.pdf)

·      General meeting to approve the Acquisition will be held on 30(th)
August 2022

·      INA deal completion expected Q4 2022 post Government approvals

·      Sonangol deal completion expected Q4 2022 post Block 3/05 licence
extension and Government approvals

·      Admission of enlarged group to trading on AIM expected Q4 2022

 

1)     Valuation is based on NPV10%

2)     Based on the initial consideration

3)     RBL facility is up to $110million of which up to $75million is
available for the Sonangol and INA transactions

Management Presentation - 10am Wednesday 10(th) August

Afentra's management team will host a live audiocast presentation today at
10am to provide further details on the Acquisition and the assets. The live
audiocast can be accessed via the Investor Meet Company platform at the
following link:
https://www.investormeetcompany.com/afentra-plc/register-investor
(https://www.investormeetcompany.com/afentra-plc/register-investor) and the
presentation can be accessed on the company website via the following link:
https://afentraplc.com/wp-content/uploads/2022/08/Angolan-Acquisitions-Resumption-of-Trading.pdf
(https://afentraplc.com/wp-content/uploads/2022/08/Angolan-Acquisitions-Resumption-of-Trading.pdf)

Analysts and investors wishing to participate in the Q&A session can do so
by pre-submitting questions via the Investor Meet Company platform or via the
chat function of the live presentation, and these will be addressed by
management during the audiocast.

A playback of the audiocast and the presentation will be also be made
available on the website: www.afentraplc.com

Commenting on the update, CEO Paul McDade said:

"We are very pleased to have Afentra's shares re-admitted to trading after the
lengthy suspension period associated with the RTO process. We are emerging
from suspension with two complementary transactions that provide a strong
growth platform underpinned by robust cash flow and significant upside
value.

Since launching just over a year ago, Afentra has been focused on establishing
a profile as a credible and responsible independent oil and gas company with a
clear vision to support an effective and just energy transition in Africa. In
parallel we have been actively screening opportunities against the strict
criteria we established at the outset in terms of asset type, geography and
valuation metrics. To support our business development activities, we have
also engaged in preliminary discussions with both debt and equity capital
markets to ensure we have supportive investors for the deals we bring to
market. These transactions are the culmination of all of those aspects and we
look forward to demonstrating the value accretive nature as we complete them
both in the coming months.

The market drivers that support Afentra's purpose and long-term growth
strategy remain compelling, despite the current impact of a volatile commodity
price environment, and we remain highly active and disciplined in our
assessment of the opportunity landscape. We view these inaugural deals in
Angola as the early building blocks in our long-term growth ambitions and look
forward to rewarding our shareholders for their trust and patience."

All capitalised terms, unless otherwise defined, shall have the meanings
ascribed to them in the announcement titled Afentra signs Sale and Purchase
Agreement with Sonangol for Blocks 3/05 & 23 offshore Angola (RNS Number:
6159J) and released by the Company at 7:00 am on 28 April 2022.

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

Chris Judd

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

 

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