REG - Afentra PLC - Update on Etu Acquisition

AfentraAnnouncement

Today 07:02

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260319:nRSS2286Xa&default-theme=true

RNS Number : 2286X  Afentra PLC  19 March 2026

19(th) March 2026

 

AFENTRA PLC

 

Update on Etu Acquisition

Sonangol Joins Afentra and M&P in Acquisition of Interests in Blocks 3/05
and 3/05A, Offshore Angola

 

Afentra plc ("Afentra" or the "Company") (AIM: AET), the upstream oil and gas
company focused on acquiring mature production and development assets in
Africa, is pleased to provide an update on the previously announced Sale and
Purchase Agreement ("SPA") signed with Etu Energias S.A. ("Etu") regarding its
interests in Blocks 3/05 and 3/05A, offshore Angola.

As part of the transaction process, Sonangol E&P, the operator of both
blocks, has elected to participate in the acquisition of Etu's interests.
Following this development, Sonangol, Afentra and Etablissements Maurel &
Prom S.A. ("M&P") will jointly acquire Etu's 10% interest in Block 3/05
and 13.33% interest in Block 3/05A offshore Angola.

As a result of Sonangol's participation in the transaction, Afentra (Angola)
Ltd has signed a new SPA with Etu to acquire a 3.33% interest in Block 3/05
and a 3.66% interest in Block 3/05A. Completion of the transaction remains
subject to customary conditions precedent, including government approval in
Angola. The previously announced SPA signed with Etu has been terminated.

 

Updated Transaction Highlights

·      Acquisition of additional interests; 3.33% net in Block 3/05 and
3.66% net in Block 3/05A, offshore Angola.

·      Net upfront consideration of US$15.2 million 1  (#_ftn1) .

·      Contingent consideration of up to US$6.74 million(1,2) across
both blocks, linked to a combination of oil price thresholds, production
performance, and the successful development of key discoveries.

·      Effective date of the transaction is 31 December 2023.

 

A short supporting presentation has been uploaded to the Afentra website: Etu
Transaction Update - Sonangol Joins Acquisition Presentation
(https://wp-afentra-2025.s3.eu-west-2.amazonaws.com/media/2026/03/2026-Etu-SPA-presentation-update.pdf)

 

The decision by Sonangol E&P, who as national oil company have full
pre-emption rights, to jointly acquire Etu's interests alongside Afentra and
M&P demonstrates the desire by all parties to build on the strong
collaborative partnership that has been formed in Block 3/05 and 3/05A. The
partnership, led by Sonangol as Operator of the assets, will continue to
invest in the ongoing redevelopment programme that is beginning to unlock the
full potential of the assets which will lead to sustained increases in both
production and reserves over the coming years.

 

Afentra continues to pursue its disciplined approach to value creation,
leveraging success-based transaction structures and a strong local partnership
framework. The Company remains confident in the significant upside potential
of Blocks 3/05 and 3/05A and looks forward to continued constructive
engagement with all stakeholders.

 

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

"The evolution of the transaction structure to include Sonangol in the Etu
acquisition is a welcome development and is a clear demonstration of the
collaborative approach that has been achieved within the partnership. The
joint acquisition further consolidates and aligns all parties as we work
together to unlock the full potential of Blocks 3/05 and 3/05A. This
transaction exemplifies Afentra's disciplined strategy of building a
high-quality, cash-generative asset base in Africa in close partnership with
host governments and local operators."

 

Following completion of the acquisitions by Afentra, M&P and Sonangol from
Etu, the joint venture partners across both Blocks 3/05 and 3/05A will be
comprised as follows:

 

 Post Completion interest
                      Block 3/05  Block 3/05A
 Sonangol (Operator)  39.34%      39.34%
 Afentra              33.33%      24.99%
 M&P                  23.33%      30.33%
 NIS Naftagas         4%          5.33%

 

Next Steps

Completion of the Etu acquisition remains subject to customary conditions
precedent, including government approvals in Angola and finalisation of
definitive documentation. The Company expects completion in Q2 2026 and will
provide further updates in due course.

 

 

For further information contact:

Afentra plc +44 (0)20 7405 4133

Paul McDade, CEO

Anastasia Deulina, CFO

Christine Wootliff, Investor Relations

 

Burson Buchanan (Financial PR) +44 (0)20 7466 5000

Louise Mason-Rutherford

Barry Archer

George Pope

 

Stifel Nicolaus Europe Limited (Nominated Adviser and Joint Broker) +44 (0) 20
7710 7600

Callum Stewart

Simon Mensley

Ashton Clanfield

 

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. Offshore Angola, in the Lower Congo
Basin, Afentra holds a 30% non-operated interest in the producing Block 3/05,
a 21.33% non-operated interest in Block 3/05A, and a 40% operated interest in
Block 3/24 - both Blocks 3/05A and 3/24 are located adjacent to Block 3/05.
Onshore Angola, in the western part of the onshore Kwanza Basin, Afentra holds
45% non-operated interests in the prospective Blocks KON15 and KON19. Afentra
also holds a 40% non-operated interest in the offshore exploration Block 23 in
the Kwanza Basin.

 

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) and as subsequently amended by the
Financial Services Act 2021 ('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.

 1  (#_ftnref1) .The upfront and contingent considerations represents
Afentra's pro-rata share of the total considerations agreed by Afentra,
M&P and Sonangol to acquire 100% of ETU's interests in Block 3/05 and 5A.
The upfront consideration is subject to customary completion adjustments.

2. The 2025 contingent payment of up to $2m has lapsed. While production
threshold was met, the Brent price trigger was not reached; therefore, no
contingent payment is due for 2025.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  ACQDDGDXBXBDGLI



            Copyright 2019 Regulatory News Service, all rights reserved