Business
Block 3/05 Licence Extension
Block 3/05 Licence Extension.
About this update from Afentra Plc
[{"type":"text","content":"\n\n17 May 2023\nAFENTRA PLC\n \nMinisterial Approval of Block 3/05 Licence Extension\n \nAfentra plc ('Afentra' or the 'Company') provides the following update regarding the previously announced Angolan acquisitions.\n \nSonangol Acquisition Update\nWe are pleased to confirm that an Executive Decree to formally approve the period of the Block 3/05 licence extension, extending the production sharing agreement ('PSA') to 31 December 2040, has been published in the Diário da República. The recent agreement between the Block 3/05 JV partners and ANPG (the Angolan Oil & Gas regulator) on the licence extension terms, as communicated on 10 May 2023, will now allow these improved fiscal terms associated with the extension to be progressed towards formal approval.\n \nApproval of the licence extension term satisfies a key condition precedent ('CP') under the Sonangol Sale and Purchase Agreement ('SPA'). Sonangol, as seller, is now in the process of obtaining the requisite government approvals for the transaction, the key outstanding CP. We remain on track to complete by 30 June 2023.\n \nINA Acquisition Update\nAs previously advised on 10 May 2023, the successful licence extension satisfies the condition in the INA-Industrija d.d. ('INA') SPA for the payment of $10m of contingent consideration to INA. This $10m had previously been set aside into an escrow deposit upon completion of the INA Acquisition.\n \nThe Company looks forward to providing shareholders with further updates in due course.\nCommenting on the update, CEO Paul McDade said:\n\"Approval of the Block 3/05 licence extension represents a major milestone towards completion of the Sonangol transaction. We are pleased with the progress made in recent weeks and continue to expect completion of this transaction to occur within our previously guided timeline.\"\nFor further information contact:\nAfentra plc +44 (0)20 7405 4133\nPaul McDade, CEO\nAnastasia Deulina, CFO\n \nBuchanan (Financial PR) +44 (0)20 7466 5000\nBen Romney\nJon Krinks\n \nPeel Hunt LLP (Nominated Advisor and Joint Broker) +44 (0)20 7418 8900\nRichard Crichton\nPaul Gillam\nDavid McKeown\n \nTennyson Securities (Joint Broker) +44 (0)20 7186 9033\nPeter Krens\n \nAbout Afentra\nAfentra plc (AIM:AET) is an upstream oil and gas company focused on opportunities...