Afentra, the upstream oil and gas company focused on mature production and development assets in Africa, has announced the publication of the executive decree for Block 3/05A by the Angolan Ministry of Mineral Resources, Petroleum and Gas ('MIREMPET') for the previously announced acquisition from Etu Energias S.A. of additional interests in Blocks 3/05 and 3/05A, offshore Angola (the 'Etu Acquisition').
With the executive decrees for both blocks now published, the parties will proceed with the novation process and the remaining customary completion steps, with completion expected in the coming weeks.
As previously announced, Sonangol E&P, the operator of both blocks, elected to participate in the acquisition process alongside Afentra and Etablissements Maurel & Prom S.A. (“M&P”). Accordingly, Sonangol, Afentra and M&P agreed to jointly acquire Etu’s 10% interest in Block 3/05 and 13.33% interest in Block 3/05A. Under the transaction, Afentra will acquire an additional 3.33% interest in Block 3/05 and an additional 3.66% interest in Block 3/05A, increasing the Company’s interests to 33.33% and 24.99%, respectively.
Transaction Highlights
- Acquisition of additional interests of 3.33% net in Block 3/05 and 3.66% net in Block 3/05A, offshore Angola.
- Net upfront consideration of $15.20 million(1).
- Contingent consideration of up to $6.74 million, of which up to $4.74 million could become payable1,2 across both blocks, linked to a combination of oil price thresholds, production performance, and the successful development of key discoveries.
- Effective date of the transaction is 31 December 2023.
The payment due at completion is expected to be significantly lower than the upfront consideration, reflecting adjustments for the period since the transaction’s effective date of 31 December 2023.
Paul McDade, Chief Executive Officer of Afentra plc, commented:
'The publication of the executive decree for Block 3/05A, following that of 3/05, represents a further important milestone in the expansion of our offshore acreage in Angola. We look forward to working towards closing the acquisition with Etu and our partners, Sonangol and M&P.'
Source: Afentra
