Afentra acquisition of block interest approved by Angolan government

(Alliance News) - Afentra PLC on Thursday said the Angolan government has approved its acquisition of interest in two oil blocks from Sonangol Pesquisa e Producao SA.

The upstream oil and gas company focused on acquiring mature production and development assets in Africa said it will purchase a 14% non-operating interest in Block 3/05 and a 40% non-operating interest in Block 23, both offshore Angola.

The company said it is finalising the deal with Sonangol, which is expected to be completed in the fourth quarter of 2023.

Afentra also noted that the government approval process for its acquisition of an additional 12% interest in Block 3.05 and a 16% interest in Block 3/05A, both offshore Angola, from Azule Energy Angola Production BV is still ongoing.

It said that following both acquisitions from Sonangol and Azule, and including its current interests, the firm will a 30% stake in Block 3/05, and a 21% stake in Block 3/05A.

Afentra further noted that the Angolan government has also approved the redistribution of China Sonangol International's interests in Block 3/05A, which will result in Afentra's holding increasing to 5.3% from 4.0%.

Chief Executive Paul McDade said: "The receipt of the Government of Angola approval of the Sonangol Acquisition is a key step in the acquisition process and we continue to look forward to completing both the Sonangol and Azule acquisitions before year end. The combination of these interests with our current interests in Block 3/05 and 3/05A will provide Afentra with a material equity position in this world class production asset.

"The approval of the new fiscal terms and the redistribution of the CSI interests further enhances the value of these acquisitions and also demonstrates the Government of Angola's commitment to providing an attractive and stable fiscal environment that encourages further investment in its oil & gas industry.

"We continue to work with the operator Sonangol and our joint venture partners to ensure that we maximise the production, reserves and value of this quality long life asset for the benefit of all stakeholders whilst also reducing the emissions profile."

Afentra shares rose 7.6% to 29.60 pence each on Thursday afternoon in London.

By Harvey Dorset, Alliance News reporter

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