Afentra Expands Offshore Angola Holdings with Key Acquisition from Azule Energy

Afentra plc has successfully completed the acquisition of additional non-operating interests in offshore Angola blocks 3/05 and 3/05A from Azule Energy Angola Production B.V. This strategic move significantly increases Afentra's stakes in these blocks, from 18% to 30% in Block 3/05 and from 5.33% to 21.33% in Block 3/05A.

The acquisition was finalized with a cash consideration of $28.4 million, a reduction from the initial $48.5 million due to cash flow adjustments from the transaction's effective date of October 1, 2022. Additionally, Afentra inherits approximately 480,000 barrels of crude oil stock as part of the deal.

Why this matters: This acquisition strengthens Afentra's position in the offshore Angola oil sector, enhancing its production capabilities and financial standing. The deal's impact on the company's financial stability and operational capacity will have broader implications for the energy industry and investors.

Following this acquisition, Afentra's net debt is expected to be around $46.2 million, with a total crude oil stock of approximately 840,000 barrels. The company has also reported a combined gross production for the first four months of 2024 averaging around 23,000 barrels of oil per day (bopd), with net production at about 6,800 bopd.

Afentra anticipates selling its next cargo of crude oil, estimated at approximately 450,000 barrels, in June 2024. This sale is expected to further bolster the company's financial stability and operational capacity.

The company and its auditor, BDO, are currently reviewing and auditing the appropriate accounting treatment related to the INA and Sonangol acquisitions completed in 2023. Afentra plans to issue its annual results for 2023 in early June 2024.

Afentra's management team will also host an investor presentation via the Investor Meet Company platform, providing further insights into the acquisition and the company's future plans.

With this acquisition, Afentra strengthens its position in the offshore Angola oil sector, enhancing its production capabilities and financial standing. The company continues to focus on optimizing its assets and maintaining robust operational performance.

Key Takeaways

• Afentra acquires additional interests in Angola blocks 3/05 and 3/05A from Azule Energy.
• Acquisition increases Afentra's stakes to 30% and 21.33% in blocks 3/05 and 3/05A, respectively.
• Cash consideration is $28.4 million, with Afentra inheriting 480,000 barrels of crude oil stock.
• Afentra's net debt is expected to be $46.2 million, with total crude oil stock of 840,000 barrels.
• Company anticipates selling 450,000 barrels of crude oil in June 2024, boosting financial stability.