Afentra (Angola) Ltd, has signed a Sale and Purchase Agreement ('SPA') with INA - Industrija Nafte, d.d. to acquire a 4% interest in Block 3/05 and a 5.33% interest1 in Block 3/05A, offshore Angola (the "INA Transaction"). This transaction builds upon the acquisition of a 20% interest in Block 3/05 from Sonangol announced in April 2022 (the "Sonangol Acquisition"). The INA Acquisition has an effective date of 30th September 2021.

Transaction Highlights: Strategic Rationale- Incremental acquisition builds upon Afentra's strategic entry into Block 3/05, a mature, shallow water, production asset with material upside - Block 3/05- Acquisition results in a combined equity ownership of 24% - Initial consideration of $9 million - Additional consideration of $10 million, payable upon licence extension - Contingent consideration of up to $6 million over 3 years, subject to certain oil price hurdles and an annual cap of $2 million - Block 3/05A- Acquisition of 5.33% interest in a license adjacent to Block 3/05, providing the opportunity to tie back existing discoveries to the Block 3/05 infrastructure - Initial consideration of $3 million - Contingent consideration of up to $5 million linked to the successful future development of certain discoveries and oil price hurdles - Combined Interests-the INA Transaction and the previously announced Sonangol Acquisition are expected to be financed through new debt facilities and existing cash, discussions with selected debt provider are well advanced - Combined 2P reserves of ~24 million barrels and production of ~4,680 bbl/day - Overall low-cost entry with implied acquisition cost of ~$4/2P bbl4 - Attractive asset breakeven economics of $35/bbl - Average net FCF after capex of ~$35 million p.a. @ $75/bbl over next 5 years - Payback in less than 3 years at ~$75/bbl based on 2P production alone.