Afentra : INA Completion Update Presentation

AFRICAN ENERGY

TRANSITION

INA Completion Update

10 May 2023

Afentra plc

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Afentra plc

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Angola Entry Following INA Deal Completion

INA completion

• Completed acquisition from INA of interests in Block 3/05 (4%) and Block 3/05A (4%)1 on 5 May 2023
• Net completion payment of $17.0m with inherited crude oil stock valued at $16.6m2
• Escrow deposit of $10.0m made to cover the Block 3/05 licence extension contingent payment
• Net upfront consideration and escrow deposit funded by $18.9m from debt facilities and $8.1m cash
• The Company expects to sell its first cargo of crude oil in Q3 2023

Block 3/05 PSA extension

• Block 3/05 partners and ANPG have now agreed the terms of the Block 3/05 licence extension
• Licence will be extended to December 20403 with enhanced fiscal terms
• Government approval expected in June 2023

Sonangol Acquisition pending

• Agreement on licence extension allows Sonangol to pursue the requisite government approvals for transaction
• Completion expected ahead of 30 June 2023

Post-deal interests

Block 3/05	INA	Sonangol
	completion	completion
Sonangol	50%	30%
Afentra	4%	24%
Azule	12%	12%
Somoil	10%	10%
M&P	20%	20%
Naftagas	4%	4%
Block 3/05A4	INA	Sonangol
	completion	completion
Sonangol	33.33%	33.33%
M&P	26.67%	26.67%
Azule	16.00%	16.00%
Somoil	13.33%	13.33%
Afentra	5.33%1	5.33%1
Naftagas	5.33%	5.33%

1. Subject to final approval of the distribution of the China Sonangol International ('CSI') interest to the remaining joint venture partners, Afentra's working interest in Block 3/05A would increase from 4% to 5.33%
2. Afentra share of stock-in-tank at 30 April 2023, valued at $80/bbl on a pre-tax basis
3. Block 3/05 PSA extension from 1 July 2025 to 31 December 2040
4. Assumes that the default China Sonangol interests have been redistributed pro-rata amongst existing Partners (subject to final approval, as per footnote 1)

Afentra plc

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Financing INA Completion

Significant offset to completion costs with earned cash flow & stock at completion

INA Transaction

Block 3/05 (4%), Block 3/05A (4%)1 - effective date 30 September 2021

Completion Date - 5 May 2023	$ million
Upfront consideration	12.0
Working capital & interests2	4.8
Contingent consideration due	2.0
Asset cashflow contribution3	(1.8)
Net completion payment to INA	17.0
License extension payment (paid into Escrow)	10.0
Stock entitlement at completion 207,868 bbls	~16.64

1. Subject to final approval of the distribution of the China Sonangol International interest to remaining joint venture partners, Afentra's working interest in Block 3/05A would increase from 4% to 5.33%
2. Working capital adjustments and interest on consideration from effective date to completion date

Transaction status & funding

• Transaction completion
• • Government approval received in January 2023
  • Completion documentation finalised on 5 May 2023
• Funding of $27.0m net upfront consideration and escrow deposit
• • $18.9m debt facilities
  • $8.1m cash
• Further contingent payments
• • Up to $4m over 2 years subject to oil price hurdles5
  • Up to $5m subject to Block 3/05A future developments6

1. Afentra share of stock-in-tank at 30 April 2023, valued at $80/bbl on a pre-tax basis
2. Calculated as 30% share of revenue upside above Brent price of $65/bbl with an annual cap of $2m
3. Subject to development of existing discoveries and a minimum Brent price of $65/bbl

3 Asset cashflow generation from effective date to completion, comprising crude oil sales less cash calls paid, excluding significant stock-in-tank inherited at completion

Afentra plc

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Operational Update: Blocks 3/05 and 3/05A

Block 3/05 (Congo basin) - 24%1

• Q1'23 production from Block 3/05 averaged 17,206 bbl/d

1. Rates impacted by downtime due to planned restoration works on power generation and distribution network

1. April 2023 production averaged ~19,000 bbl/d

• 1. Updated CPR completed with 1P/2P/3P reserves of 72/108/145 mmbbls (gross) at 1.1.23 effective date. 2C resources of 43 mmbbls.
• Key 2023/2024 activities:
• 1. Water injection rates increased to average ~45,000 bw/d in Q1 2023. Continued investment and focus.

1. Light well interventions ongoing with a further 30 interventions in next 18 months

1. Ongoing investment in infrastructure to enhance reliability and uptime

1. Building full understanding of emissions and potential mitigation options

Block 3/05A (Congo basin) - 4%2,3

• Long-termtesting commenced at the Gazela field of additional 1,100 bbl/d, enabling framing of potential development options
• Punja development concept meetings ongoing to frame opportunity

1. Upon completion of the Sonangol transaction, Afentra's working interest in Block 3/05 increases from 4% to 24%
2. Subject to final approval of the distribution of the China Sonangol International ('CSI') interest to the remaining joint venture partners, Afentra's working interest in Block 3/05A would increase from 4% to 5.33%
3. Caco-Gazela& Punja resources not included in 2023 CPR

Afentra plc

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