Business
Completion of INA Acquisition
Completion of INA Acquisition.
About this update from Afentra Plc
[{"type":"text","content":"\n\n10 May 2023\nAFENTRA PLC\n \nCompletion of INA Acquisition\n \nAfentra plc ('Afentra' or the 'Company') provides the following update regarding the previously announced Angolan acquisitions.\n \nCompletion of INA Acquisition\nAfentra is pleased to announce completion of the acquisition from INA-Industrija d.d. ('INA') of a 4% interest in Block 3/05 and 4% interest1 in Block 3/05A offshore Angola (the 'INA Acquisition') pursuant to a sale and purchase agreement between INA and Afentra's wholly owned subsidiary, Afentra (Angola) Ltd, dated 18 July 2022 ('SPA'). This acquisition marks Afentra's entry into Angola where it is well positioned to build a material production business and contribute to a responsible energy transition for the country.\n· The transaction effective date of 30 September 2021 results in a net upfront consideration at completion of $17.0m, which is offset by the Company inheriting crude oil stock with an approximate value of $16.6m at $80/bbl (207,868 bbls2)\n· The Company has also set aside $10.0m into an escrow deposit (\"Escrow\") at completion, which will be paid to INA after the Block 3/05 licence extension is formally completed\n· The net upfront consideration and escrow deposit will be funded by $18.9m from the agreed Reserve Based Lending ('RBL') and working capital facilities and $8.1m from cash resources\n· The Company expects to sell its first cargo of crude oil in Q3 2023, thereby monetising the inherited crude oil stock and subsequent production\n· Block 3/05 current gross production in April averaged ~19,000 bbl/d (net 760 bbl/d)\nThe upfront consideration of $17.0m comprises a $12.0m initial consideration, $4.8m in working capital and interest3 and $2.0m in payments of crystallised contingent consideration,4 adjusted downwards by $1.8m due to positive net asset cashflows.5\nThe Company is pleased to announce that Mauritius Commercial Bank ('MCB') has entered both the RBL and working capital facilities as the lender to the Company. Trafigura retains an interest in the RBL facility and will continue as offtake provider for the Block 3/05 crude. The principal terms and conditions for both the RBL and working capital facility remain ...