Afentra provides the following update regarding the previously announced Angolan acquisitions.

Sonangol Acquisition

On 28 April 2022, the Company announced that its wholly-owned subsidiary, Afentra (Angola) Ltd, had signed a sale and purchase agreement with Sonangol Pesquisa e Producao S.A. ('Sonangol') to purchase non-operating interests in Block 3/05 (20%) and Block 23 (40%), offshore Angola (the 'Sonangol Acquisition'). As set out in the admission document published by the Company on 10 August 2022, the Sonangol Acquisition is subject to a number of conditions precedent (the 'CPs'), including the receipt of governmental approvals and the extension of the Block 3/05 Production Sharing Agreement ('PSA') until at least 31 December 2040.

The Company remains in discussion with all relevant parties and is continuing to make good progress on the transaction. An important CP for the transaction is the PSA extension process; ANPG and the Block 3/05 contractor group continue to progress this matter. Nevertheless, the PSA extension is now unlikely to be finalised before 31 December 2022 and the Company, together with Sonangol, are working on extending the long stop date for the Sonangol Acquisition in order to facilitate satisfaction of the remaining CPs to enable completion in Q1 2023.

INA Acquisition

On 19 July 2022, the Company announced that its wholly-owned subsidiary, Afentra (Angola) Ltd, had signed an SPA with INA - Industrija Nafte d.d. ('INA') to purchase a 4% interest in Block 3/05 and an up to 5.33% interest1 in Block 3/05A offshore Angola. As set out in the admission document published by the Company on 10 August 2022, the INA Acquisition also remains subject to a number of CPs.

Good progress has been made with INA and the relevant authorities. The transaction is now with the Ministry awaiting Governmental approval, and formal completion is anticipated to occur in early 2023. Given the progress made to date, there is not considered to be any requirement to extend the long-stop date pursuant to the INA Acquisition at this time, as set out in the Company's admission document.

Block 3/05 operational update

Block 3/05 production for the first nine months of 2022 has been stable and in-line with expectation at 19,160 bopd gross. This is equivalent to ~4,600 bopd net to Afentra upon completion of the Sonangol and INA Acquisitions. The Company looks forward to continuing to guide the market on operational performance.

Finally, the company have made good progress in their search for a further independent Non-Executive Director and are in the final stage of this process, which will ensure a further strengthening of the Afentra Board as they expand the Company's portfolio. Afentra hope to be in a position to finalise this appointment around the time of completion of the Sonangol Acquisition.

Commenting on the update, CEO Paul McDade said:
"We expect governmental approval of the INA Acquisition shortly which will allow us to complete this acquisition, marking our entry into Angola in early 2023 and the inception of our partnership with Sonangol in Blocks 3/05 and 3/05A with whom we intend to work closely with to optimise production and to extend the life of this quality, long-life asset. We are pleased that significant progress has been made on the award of the license extension and look forward to this being completed so that we can proceed with the Sonangol Acquisition in the near future."

KeyFacts Energy: Afentra Angola country profile