Investor Presentaiton
Azule SPA and Sonangol Acquisition Update
Combination of transactions builds a material position in both Blocks 3/05 and 3/05A
Azule SPA, 19 July 2023
Attractive incremental acquisition increasing Afentra's interests in Blocks 3/05 (+12%) and 3/05A (+16%) 1
Total consideration of up to $84.5m, split $48.5m upfront and up to $36m in contingent payments²
Deal funded through agreed capacity within debt facilities³ and existing cash on balance sheet
Low entry cost ~$3.7/bbl and access to a further ~7 mmbbls of 2C resources in Block 3/05A4
Positive asset economics from higher associated cost pool & improved fiscal terms anticipated from 3/05 licence extension
Effective date 31 October 2022
Acquisition constitutes a RTO by AIM Rules suspending trading of Afentra shares until publication of Admission Document
Amended Sonangol Acquisition, 19 July 2023
Acquiring a reduced working interest in Block 3/05, from 20% to 14%
Ensures Sonangol's support for Azule transaction and an appropriate balance of equity interests in Block 3/05
Firm and contingent considerations reduce to $56m and up to $35m, respectively (terms remaining unchanged)5
Effective date 20 April 2022 (unchanged)
Combined acquisitions
Increases Afentra interests to 30% in Block 3/05 and 21.33%¹ in Block 3/05A
Increases net production to ~6 kbbl/d;6 net 2P reserves to ~32 mmbbls; net 2C resources ~20 mmbbls4
Completion of both acquisitions expected in Q4'23 following shareholder approval
Block
3/05
Post completion interests
INA deal Sonangol deal Azule deal
Sonangol (op.)
Afentra
50%
36%
36%
4%
18%
+30%
Maurel & Prom
20%
20%
20%
etu energias
10%
10%
10%
NIS Naftagas
Azule Energy
4%
4%
4%
12%
12%
0%
Block
3/05A1
Post completion interests
Sonangol (op.)
INA deal Sonangol deal
33.33%
Azule deal
33.33%
33.33%
Maurel & Prom
Afentra
26.67%
26.67%
26.67%
5.33%
5.33%
21.33%
etu energias
NIS Naftagas
13.33%
13.33%
13.33%
5.33%
5.33%
Azule Energy
16.00%
16.00%
5.33%
0%
1 Assumes that the default China Sonangol interests have been redistributed pro-rata amongst existing Partners, increasing Afentra's interest in Block 3/05A from 4% to 5.33% (post-INA) and from 16% to 21.33% (post-Azule)
2 Up to $21m in contingent payments payable on a sliding scale above Brent price of $75/bbl with an annual cap of $7m over the years 2023, 2024 & 2025; and up to $15m in contingent consideration linked to the successful future development of the Caco-
Gazela and Punja discoveries (split $7.5m equally), payable 1 year after first oil subject to a Brent price of $75/bbl and production hurdles
3 The RBL facility between Trafigura and Mauritius Commercial Bank has a limit of $110m of which up to $75m is available for the Sonangol and INA transactions and up to $35m available for the Azule transaction
4 Based on the Competent Persons Report on Block 3/05 effective 1 January 2023, estimating 2P reserves of 108 mmbbls (gross) and 2C resources of 43 mmbbls (gross). Block 3/05A 2C resources are based on an Afentra resource estimate effective 1
January 2022 of 33 mmbbls (gross).
5 Firm and contingent considerations reducing from $80m to $56m and from up to $50m to up to $35m (capped at $3.5m p.a. for an unchanged 10-year period commencing 1 January 2023 and oil price hurdle of $65/bbl)
6 Including gross production currently being tested at the Gazela field on Block 3/05A of an additional 1,200 bbl/d
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