TIDMAET
RNS Number : 4785V
Afentra PLC
10 August 2022
This announcement contains inside information for the purposes
of article 7 of Regulation 2014/596/EU (which forms part of
domestic UK law pursuant to the European Union (Withdrawal) Act
2018) ('UK MAR'). Upon publication of this announcement, this
inside information (as defined in UK MAR) is now considered to be
in the public domain. For the purposes of UK MAR, the person
responsible for arranging for the release of this announcement on
behalf of Afentra is Paul McDade, Chief Executive Officer.
10 August 2022
AFENTRA PLC
Publication of Admission Document and Notice of General
Meeting
Afentra plc ('Afentra' or the 'Company'), an upstream oil and
gas company listed on AIM and focused on acquiring production and
development assets in Africa, is pleased to announce that further
to the announcement made on 28 April 2022 regarding the proposed
acquisition of interests in Block 3/05 and Block 23 (the
'Acquisition') from Sonangol Pesquisa e Produço S.A. ('Sonangol'),
an Admission Document in relation to the Acquisition and Notice of
General Meeting to approve the Acquisition will be posted to
shareholders today and is available to download from the Company's
website.
Following the publication of the Admission Document, the Company
anticipates that the suspension of the trading in the Company's
shares will be lifted and that trading in the Company's Ordinary
Shares will recommence at 8.00am BST this morning.
The General Meeting will be held electronically on
https://web.lumiagm.com/ at 2pm on 30(th) August 2022.
Afentra Strategy Overview
-- Launched in May 2021 with strategic intent to:
o support a responsible oil & gas industry transition in
Africa
o capitalise on opportunities resulting from the energy
transition in Africa
o create long-term value for all stakeholders
-- Announced two strategically consistent and complementary transactions in Angola that:
o deliver a balanced cash flow generative portfolio of assets
with significant opportunities for future reserves and production
growth
o provide an opportunity to establish a long-term relationship
with Sonangol
o enable Afentra to influence a broad and positive ESG
impact
o creates a strong foundation for future transactions in
Angola
-- Continue to pursue its material growth strategy by:
o actively screening multiple opportunities across the
region
o supporting the increasingly pragmatic narrative for a just and
responsible energy transition for the African continent
Angolan Acquisitions
-- Provide a foundation for Afentra's strategy to deliver
material value from mature long-life assets with opportunities for
low-cost incremental investment
-- Competent Persons Report published, gross 2P reserves increased to 115 million barrels
o Net 2P reserves of 27.7 million barrels
o Net 1H 2022 production of c.4,700 bbl/day net to Afentra
o Core 2P reserves valuation of c.$185 million(1) with
significant upside potential
-- Attractive low-cost entry into a positive cash flow asset:
o Implied acquisition cost of c.$3.6/2P bbl(2)
o Average annual FCF net to Afentra of c.$36 million @ $75/bbl
over next 5 years
-- Transactions will be financed through cash on balance sheet
and committed five-year RBL and working capital facility with
Trafigura
o Up to $75 million RBL facility(3) ; 8% margin over 3-month
SOFR
o Up to $30 million revolving working capital facility; 4.75%
margin over 1-month SOFR
Re-admission process and key timings
-- Resumption of trading, and commencement of dealings on AIM of
the Company's existing Ordinary Shares expected to become effective
at 8:00am
-- Admission Document available to download from the Company's
website in accordance with the AIM Rules:
https://afentraplc.com/wp-content/uploads/2022/08/Admission-Document-and-Notice-of-General-Meeting.pdf
-- General meeting to approve the Acquisition will be held on 30(th) August 2022
-- INA deal completion expected Q4 2022 post Government approvals
-- Sonangol deal completion expected Q4 2022 post Block 3/05
licence extension and Government approvals
-- Admission of enlarged group to trading on AIM expected Q4 2022
1) Valuation is based on NPV10%
2) Based on the initial consideration
3) RBL facility is up to $110million of which up to $75million
is available for the Sonangol and INA transactions
Management Presentation - 10am Wednesday 10(th) August
Afentra's management team will host a live audiocast
presentation today at 10am to provide further details on the
Acquisition and the assets. The live audiocast can be accessed via
the Investor Meet Company platform at the following link:
https://www.investormeetcompany.com/afentra-plc/register-investor
and the presentation can be accessed on the company website via the
following link:
https://afentraplc.com/wp-content/uploads/2022/08/Angolan-Acquisitions-Resumption-of-Trading.pdf
Analysts and investors wishing to participate in the Q&A
session can do so by pre-submitting questions via the Investor Meet
Company platform or via the chat function of the live presentation,
and these will be addressed by management during the audiocast.
A playback of the audiocast and the presentation will be also be
made available on the website: www.afentraplc.com
Commenting on the update, CEO Paul McDade said:
"We are very pleased to have Afentra's shares re-admitted to
trading after the lengthy suspension period associated with the RTO
process. We are emerging from suspension with two complementary
transactions that provide a strong growth platform underpinned by
robust cash flow and significant upside value.
Since launching just over a year ago, Afentra has been focused
on establishing a profile as a credible and responsible independent
oil and gas company with a clear vision to support an effective and
just energy transition in Africa. In parallel we have been actively
screening opportunities against the strict criteria we established
at the outset in terms of asset type, geography and valuation
metrics. To support our business development activities, we have
also engaged in preliminary discussions with both debt and equity
capital markets to ensure we have supportive investors for the
deals we bring to market. These transactions are the culmination of
all of those aspects and we look forward to demonstrating the value
accretive nature as we complete them both in the coming months.
The market drivers that support Afentra's purpose and long-term
growth strategy remain compelling, despite the current impact of a
volatile commodity price environment, and we remain highly active
and disciplined in our assessment of the opportunity landscape. We
view these inaugural deals in Angola as the early building blocks
in our long-term growth ambitions and look forward to rewarding our
shareholders for their trust and patience."
All capitalised terms, unless otherwise defined, shall have the
meanings ascribed to them in the announcement titled Afentra signs
Sale and Purchase Agreement with Sonangol for Blocks 3/05 & 23
offshore Angola (RNS Number: 6159J) and released by the Company at
7:00 am on 28 April 2022.
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
Chris Judd
Peel Hunt LLP (Nominated Advisor and Joint Broker) +44 (0)20
7418 8900
Richard Crichton
Paul Gillam
David McKeown
Tennyson Securities (Joint Broker) +44 (0)20 7186 9033
Peter Krens
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END
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