Afentra PLC Acquisition Update (5094A)
03 February 2022 - 5:59PM
UK Regulatory
TIDMAET
RNS Number : 5094A
Afentra PLC
03 February 2022
3 February 2022
AFENTRA PLC - Acquisition Update
Negotiations continue with Sonangol; shares remain suspended
Afentra plc ('Afentra' or the 'Company') confirms that
negotiations with Sonangol E.P ('Sonangol')(1) to purchase
interests in Block 3/05 and Block 23 (the "Acquisition") in Angola
have continued into the new year. This follows the announcement on
8 October 2021 that the Company had submitted a non-binding
Expression of Interest for the two blocks and the subsequent
suspension of its shares.
Since submitting the Expression of Interest, Afentra has been
engaged in negotiations with Sonangol to reach agreement on the
detailed terms of the transaction. These negotiations are ongoing
but there is, however, no guarantee at this stage that an agreement
between the two companies will be reached. The Acquisition would be
subject to satisfactory completion of the necessary due diligence
and agreement of a sale and purchase agreement with Sonangol.
If Afentra ultimately proceeds with the Acquisition, it would be
classified as a reverse takeover transaction in accordance with
Rule 14 of the AIM Rules for Companies. Trading in Afentra shares
will remain suspended until either the publication of an AIM
admission document, or until confirmation is given that Afentra's
participation in the bid process has ceased.
Whilst the timeline of the Sonangol sales process has been
extended beyond the previously expected timetable, this has not
diverted Afentra from the pursuit of other production assets in
West Africa. The Company continues to appraise multiple acquisition
opportunities that support its growth strategy in terms of
acquiring assets across West Africa with solid low-cost production,
proven reserves and significant upside. The Company remains
disciplined in its screening process to ensure all targets meet the
operational, commercial and environmental factors that comprise its
focussed acquisition criteria.
The Company will make further announcements as appropriate.
Paul McDade, Chief Executive Officer, Afentra plc, commented
today:
"We are pleased that we were selected by Sonangol to negotiate
for Block 3/05 and Block 23 in Angola, and have been working
diligently to find a mutually attractive outcome for both
parties.
Given our ambition to build an African business of scale, we
also remain focussed on identifying additional value-accretive
opportunities across West Africa and are engaged in a number of
active acquisition processes. We continue to screen opportunities
in jurisdictions that we know well and look forward to updating the
market at the appropriate time on the first deal for the
Company."
Notes:
(1) In June 2021 Sonangol, Angola's national oil company,
initiated an asset sales process to divest some of its interests in
eight blocks across its portfolio. Afentra submitted a non-binding
expression of interest on 20 September 2021 and on 7 October 2021
was announced as one of six bidders on Block 03/05 and one of two
on Block 23.
For further information, contact
Afentra plc
+44 (0)20 7405 4133
Paul McDade, CEO
Anastasia Deulina, CFO
Buchanan (Financial PR)
+44 (0)20 7466 5000
Ben Romney
Jon Krinks
James Husband
Peel Hunt LLP (Nominated Advisor and Joint Broker)
+44 (0)20 7418 8900
Richard Crichton
David McKeown
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.
Afentra has a current carried interest in the Odewayne Block
onshore southwestern Somaliland.
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END
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