Business
SPA with Etu for interests in Blocks 3/05 & 3/05A
SPA with Etu for interests in Blocks 3/05 & 3/05A.
About this update from Afentra Plc
[{"type":"text","content":"\n\n19 June 2025\n \nAFENTRA PLC\n \nSigning of Sale and Purchase Agreement with Etu Energias\nAfentra agrees to acquire additional interests in Blocks 3/05 and 3/05A, offshore Angola\n \nAfentra plc (AIM: AET), the upstream oil and gas company focused on acquiring mature production and development assets in Africa, is pleased to announce that its wholly-owned subsidiary, Afentra (Angola) Ltd, has agreed to jointly acquire, alongside Etablissements Maurel & Prom S.A. (\"M&P\"), Etu Energias S.A. (\"Etu\") 10% interest in Blocks 3/05 and 13.33% interest in Block 3/05A, offshore Angola (the \"Etu Acquisition\"). Afentra (Angola) Ltd has signed a Sale and Purchase Agreement (\"SPA\") with Etu for its 50% share of the acquisition which is subject to customary conditions including government approval.\n \nTransaction Highlights\n· Acquisition of additional interests; 5% net in Block 3/05 and 6.67% net in Block 3/05A, offshore Angola.\n· Net Initial consideration of US$23 million[1].\n· Contingent consideration of up to $11 million1 across both blocks, linked to a combination of oil price thresholds, production performance, and the successful development of key discoveries.\n· Effective date of the transaction is 31 December 2023.\n· The acquisition will be funded entirely from existing cash resources.\n \nA short presentation has been uploaded to the Afentra website: https://wp-afentra-2025.s3.eu-west-2.amazonaws.com/media/2025/06/2025-Etu-SPA-presentation.pdf.\n \n \nStrategic Rationale\nThis transaction represents a further value focused step in Afentra's strategy to build a high-quality portfolio of cash-generative production and development assets, offering:\n· Additional exposure to our high-margin, long-life producing and development assets in Blocks 3/05 and 3/05A.\n· Further consolidation of the Joint Venture partnership that is successfully re-developing the very material upside of this multi-billion barrel offshore asset.\n· Continued focus on value creation using disciplined transaction structures, combining modest upfront consideration with success-based contingent payments aligned to oil price and asset performance.\n \nPaul McDade, Chief Ex...