Afentra has announced its annual results for the year ended 31 December 2022
SPAs were signed to acquire non-operated interests from Sonangol and INA in the producing Block 3/05 (24%), adjacent development Block 3/05A (4%) and exploration Block 23 (40%). Reverse takeover (RTO) announced under Rule 14 of the AIM Rules to acquire Block 3/05. Stakeholder engagement across governmental, regulatory authorities and industry counterparties in Angola continues to demonstrate the country as an attractive operating and investment jurisdiction.
Angolan transactions were progressed to acquire interests in Blocks 3/05, 3/05A and Block 23. Independent ESG due diligence conducted as an integral part of the Block 3/05 and 3/05A assessment and to identify potential options to reduce emissions. The operator of the Odewayne block in Somaliland was supported to progress the technical understanding of the block and outlook on block prospectivity, as well as contributing to the drought relief programme.
The company entered into financing and offtake agreements with Trafigura to finance Sonangol and INA Acquisitions.
Post year-end highlights:
Completion of the INA acquisition was announced on 10 May, marking Afentra's formal entry into Angola.
Mauritius Commercial Bank (MCB) has entered both the RBL and working capital facilities as the lender to the company. Trafigura retains an interest in the RBL facility and will continue as offtake provider.
The Sonangol acquisition long-stop date was extended to 30 June in order to facilitate completion of the transaction.
ANPG and the Block 3/05 JV partners agreed the improved terms for the licence extension (1 July 2025 to 31 December 2040). ANPG will now progress the formal approval process.
Commenting on the update, CEO Paul McDade said, "2022 has been a year in which Afentra has truly established itself as a respected oil and gas independent. Our focus on value accretive M&A, accessing proven resources and delivering robust cash flows has been evidenced by our two inaugural acquisitions. These highly cash generative transactions provide an entry into Angola, a target country for the Company and provide a platform from which we plan to access further opportunities.
"Despite a reduced financing market in the oil and gas space, Afentra has been successful in securing financing packages for both INA and Sonangol acquisitions and maintains a strong cash position which will support potential future transactions.
"With the completion of the INA transaction in May, we now look ahead to completing the Sonangol transaction, and working with the partnership to deliver the significant potential of these assets. Beyond this, we continue our ongoing business development efforts to seek further acquisitions in line with Afentra strategy and purpose."