Spa with Azule to Acquire a Further 12% of Block 3/05 and Up to 16% of Block 3/05a Amended Sonangol Acquisition to Acquire 14% of Block 3/05 Offshore Angola

Source Company Press Release
Company Afentra plc, BP Plc., ENI S.p.A.
Tags Country: Angola, M&A: Asset Deal, Deals, Upstream: Upstream News
Date July 19, 2023

Afentra has announced that its wholly-owned subsidiary, Afentra (Angola) Ltd, has signed a Sale and Purchase Agreement ('SPA') with Azule Energy Angola Production B.V. ('Azule') to purchase a 12% interest in Block 3/05 and a 16%(1) interest in Block 3/05A, offshore Angola (together the 'Azule Acquisition') for a firm consideration of $48.5 million and deferred contingent payments of up to $36 million subject to oil price, production and development conditions.

In order to ensure support for this additional transaction and an appropriate balance of equity interests in Block 3/05, Afentra has agreed with Sonangol Pesquisa e Produção S.A. ('Sonangol') to amend the terms of the SPA dated as at 20 April 2022 to reduce the interest being acquired by Afentra in Block 3/05 from 20% to 14% (the 'Amended  Sonangol Acquisition'). The SPA terms for the Amended  Sonangol Acquisition will remain unchanged from those previously announced with the exception that the acquisition consideration will be reduced on a pro-rata basis to reflect the reduced interest acquired. The firm and contingent considerations will therefore reduce to $56 million and up to $35 million, respectively.

In accordance with the AIM Rules for Companies, the Company's ordinary shares will be suspended from trading on AIM with effect from 7:30 a.m. today. Trading in the Company's ordinary shares will remain suspended until such time as either an admission document is published, or an announcement is released confirming that the Amended Sonangol Acquisition and the Azule Acquisition are not proceeding. The Company expects to publish the Admission Document in early Q4 2023, with both the Azule Acquisition and the Amended  Sonangol Acquisition being subject to shareholder approval thereafter. We now expect both transactions to complete, subject to shareholder approval, in Q4 2023.

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