REG - Energean PLC - Strategic Entry Offshore Angola

EnergeanAnnouncement

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RNS Number : 3179W  Energean PLC  12 March 2026

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THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

 

For immediate release

 

Energean plc

("Energean" or the "Company")

 

Strategic entry offshore Angola via acquisition of Chevron's interest in Block
14 and Block 14K

London, 12 March 2026 - Energean plc (LSE: ENOG, TASE: אנאג) is pleased to
announce that it has signed an agreement to acquire Chevron's 31% operated
interest in Block 14 and 15.5% non-operated interest in Block 14K, offshore
Angola. This acquisition provides a platform for long-term growth in the
region and is the first step in Energean's strategy to expand its operations
into West Africa.

The Block 14 assets produce around 42 kbbl/d of oil in total 1  (#_ftn1) ,
equivalent to 13 kbbl/d net to the interest to be acquired. Adjusted EBITDAX
in 2025 was $119 million 2  (#_ftn2) , and the transaction is expected to be
immediately cash flow accretive to Energean.

The effective date of the transaction is 1 January 2026, with closing expected
by the end of 2026, subject, inter alia, to government and regulatory
approvals and the waiver of applicable pre-emption rights. Angola has a
supportive fiscal regime and regulatory environment, and the transaction
brings with it a highly skilled and experienced operating team.

Mathios Rigas, Chief Executive Officer of Energean,
commented:

"The acquisition of a producing oil portfolio in Angola's world‑class
hydrocarbon basin, highlighted by major recent discoveries, marks a landmark
moment for Energean. It represents our first major investment in West Africa
and is in line with our strategic focus on disciplined growth and geographic
diversification.

"The high-quality and cash-generating Block 14 assets have stable oil
production and contain long-term growth optionality, including material
resource upside from the PKBB development. We are excited about the
opportunity to realise the full potential of these assets, while growing our
broader position in the country over time.

"Our proven track record in deepwater operations and offshore project delivery
positions us well to support ANPG's strategic objective for Angola to increase
reserves and combat production decline, while creating long-term value for
Angola and our shareholders. We are pleased to be working in cooperation with
Chevron on this transaction and are committed to building on their strong
legacy, safety culture, environmental stewardship and operational excellence.

"We look forward to working closely with the Government of the Republic of
Angola and our partners to secure all necessary permits and approvals,
complete the acquisition, and advance Energean's strategic expansion in West
Africa."

Transaction Consideration and Funding

The base consideration is $260 million in cash, with an effective date of 1
January 2026. The final consideration payable at closing will be subject to:
(1) customary working capital adjustments as at the effective date, and (2)
the economic performance of the assets between the effective date and closing
date; this includes an upside sharing mechanism between Chevron and Energean
for realised oil prices over a certain threshold during this period. Energean
expects to fund the final consideration through a combination of non-recourse
debt financing on the acquired assets and available Group liquidity. The
transaction is expected to be immediately cash flow accretive and brings with
it strong EBITDAX generation.

 

In addition to the base consideration, contingent payments of up to $25
million per annum, capped at $250 million in aggregate, may become payable up
until 2038 in relation to the potential future PKBB development 3  (#_ftn3) ,
contingent on both realised oil prices and production being over certain
thresholds.

 

Timeline to Closing

The transaction is subject to regulatory approvals by Angola's National Agency
for Petroleum, Gas and Biofuels (Agência Nacional de Petróleo, Gás, e
Biocombustíveis, "ANPG"), other customary governmental and third-party
consents, and the waiver of applicable pre-emption rights. Closing is expected
by the end of 2026, conditional on the timely receipt of approvals.

 

Block 14 and Block 14K Asset Overview

Block 14 is an offshore asset, producing from nine oil fields, with output of
around 40 kbbl/d gross 4  (#_ftn4) , (12 kbbl/d net to the 31% operated
interest to be acquired). Current net 2P reserves are 28 mmbbl 5  (#_ftn5) .
Production is processed through the BBLT (Benguela, Belize, Lobito and
Tomboco) and TL (Tombua-Landana and Landana North) hubs, which together
provide significant spare oil processing capacity, along with substantial gas
processing and water‑injection capabilities. The block offers multiple
low-risk and near-term opportunities to optimise and maximise existing
production, as well as mid-term drilling targets that can be tied back into
the existing infrastructure, including the PKKB development, which has
significant upside potential. Abandonment obligations for Block 14 are fully
funded through existing escrow provisions.

 

Block 14K is a unitised cross-border asset that contains the producing Lianzi
oil field which is tied-back to the Block 14 infrastructure. Production is
around 2 kbbl/d gross, (around 1 kbbl/d net to the 15.5% non-operated interest
to be acquired).

 

The Block 14 partners are currently Chevron (31%; operator), Etu Energias
(29%), Azule Energy (20%), and Sonangol P&P (20%); and the Block 14K /
A-IMI (Lianzi) partners are currently Trident Energy (15.75%; operator), Total
E&P Congo (26.75%), Chevron (15.5%), Etu Energias (14.5%), Azule Energy
(10%), Sonangol P&P (10%), and SNPC (7.5%).

 

Block 14 and Block 14K Asset Location Map

 

 

Enquiries

 

 For capital markets:
 Kyrah McKenzie, Investor Relations Manager                      Tel: +44 7921 210 862
 ir@energean.com (mailto:ir@energean.com)
 For media:
 Adonis Seferlis, CEO Office Communications Manager              Tel: +30 697 2414262
 aseferlis@energean.com (mailto:aseferlis@energean.com)
 Ben Brewerton, FTI Consulting                                   Tel: +44 2037 271 065
 energean@fticonsulting.com (mailto:energean@fticonsulting.com)

Forward looking statements

This announcement contains statements that are, or are deemed to be,
forward-looking statements. In some instances, forward-looking statements can
be identified by the use of terms such as "projects", "forecasts", "on track",
"anticipates", "expects", "believes", "intends", "may", "will", or "should"
or, in each case, their negative or other variations or comparable
terminology. Forward-looking statements are subject to a number of known and
unknown risks and uncertainties that may cause actual results and events to
differ materially from those expressed in or implied by such forward-looking
statements, including, but not limited to: general economic and business
conditions; demand for the Company's products and services; competitive
factors in the industries in which the Company operates; exchange rate
fluctuations; legislative, fiscal and regulatory developments; political
risks; terrorism, acts of war and pandemics; changes in law and legal
interpretations; and the impact of technological change. Forward-looking
statements speak only as of the date of such statements and, except as
required by applicable law, the Company undertakes no obligation to update or
revise publicly any forward-looking statements, whether as a result of new
information, future events or otherwise. The information contained in this
announcement is subject to change without notice.

Inside Information

This announcement contains inside information as stipulated under the Market
Abuse Regulation no 596/2014 (incorporated into UK law by virtue of the
European Union (Withdrawal) Act 2018 as amended by virtue of the Market Abuse
(Amendment) (EU Exit) Regulations 2019). Upon the publication of this
announcement via a regulatory information service, this inside information is
now considered to be in the public domain.

 1  (#_ftnref1) Per December 2025 average.

 2  (#_ftnref2) Net to the interest to be acquired.

 3  (#_ftnref3) Subject to Energean taking Final Investment Decision on the
PKBB wells.

 4  (#_ftnref4) Includes production from one well on PKBB.

 5  (#_ftnref5) 2P reserves shown as of 31 December 2025 (D&M CPR report)
and includes Block 14K and PKBB.

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