Afentra Plc · LSE:AET
Afentra — Investor Presentation (June 2024)
30 slides from Afentra's investor presentation, Jun 11, 2024
Slide 1: Value driven growth
African Energy Transition Value driven growth Investor Webinar 11 June 2024 Afentra plc 1
Slide 2: Disclaimer
Disclaimer The information set out in this presentation and the accompanying verbal presentation including any question and answer session and any documents or other materials distributed with the presentation (the “Presentation”) has been produced by Afentra plc (the “Company”) as at the date of th
Slide 3: Creating a New African Independent
Creating a New African Independent 3 highly accretive deals – significant production, cashflow and reserves May 2021 April & July 2022 July 2023 May 2024 Key Elements Formation of Afentra Foundational Transactions 3rd Production Deal Azule Completion ▪ Established company with SPAs with Sonangol & I
Slide 4: Delivering an Industry Transition in Angola
Delivering an Industry Transition in Angola UK 1993 30 Years 2023 ▪ Majority of production today managed by Independents 1.9 Mmbopd Production North Sea Industry Transition ▪ Improved Recovery ~25 Bn Reserves & Resources (boe) > 150 Transactions ▪ Life Extension of Assets > 70% Production from IOC’s
Slide 5: Proven Ability to Deliver Value Through Smart Deal Making
Proven Ability to Deliver Value Through Smart Deal Making Value Evolution Since Inception ($m) Proven business development capabilities with an established >250 track record of value creation Strong relationships in capital markets to access required financing Highly experienced in-house legal and c
Slide 6: Value Driven Deal Making
Value Driven Deal Making Transaction Timeline Further contingent payments (Effective Date) (Sep-21) (Apr-22) (Oct-22) Aggregate ▪ INA Transaction – Block 3/05 - up to $2m subject Upfront to oil price hurdles4 $12.0m $56.5m $48.5m $117.0m Consideration – Block 3/05A up to $5m subject to future develo
Slide 7: Strong Financial Outlook
Strong Financial Outlook 2021 – 2023 Financial Results Highlight Debt Maturity Profile Net production (kbopd) Revenue ($m) Adj. EBITDAX ($m) Amount drawn ($m) Margin (%) -- -- 42 Facility Rate Maturity 3.5 26.4 Dec-23 May-24 11.1 RBL 33.6 47.3 3m SOFR + 8% May 28 RBL Principal Maturity Profile ($m)
Slide 8: Actively Managing Lifting & Hedging Programmes
Actively Managing Lifting & Hedging Programmes 2024 Lifting & Hedging Schedule Prepayment Facility Ongoing execution of long-term plan ▪ Up to $30 million revolving facility 70% hedged 70% hedged Targets Unhedged @ $70/bbls @ $80/bbls 0-12 months: 50% - 70% of cargo ▪ 5-year tenor cargo Puts Puts 12
Slide 9: Sound Financial & Risk Management
Sound Financial & Risk Management Liquidity Management Risk Management ▪ Managing liquidity to fulfil debt ▪ Implementing robust internal governance obligations, support continuous frameworks to identify and mitigate investments in assets and finance future M&A corporate risks ▪ Actively managing cr
Slide 10: World-Class Shallow Water Assets
World-Class Shallow Water Assets Diversified Portfolio Scale of the Prize 9 fields 3 undeveloped discoveries 17 installations 3.5 billion bbls oil in place 157 wells Block 3/05 (30%) Block 3/05A (21.33%) 3 3 ▪ >3 billion bbls ▪ 300 million bbls 2 ▪ 42% Recovery to date 2 ▪ 1% Recovery to date ▪ 108
Slide 11: Delivering Material Organic Growth
Delivering Material Organic Growth Stabilise and Sustain Production 40 Optimise Operational Wells 30 Oil Rate kbopd (Gross) and Infrastructure 20 Increase Recovery through Infill Drilling 10 Develop Satellite Discoveries 0 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Illustration of future
Slide 12: Stabilise & Sustain Production
Stabilise & Sustain Production Oil Rate kbopd (Gross) 40 30 20 10 Field Management Recent Production Profile 0 ▪ Uptime 87% in 2023 30 ▪ Targeting >90% in 2025 Total Oil Rate Quarterly Oil Avg Unplanned downtime ▪ Comprehensive upgrades of installations 25 2023 Water Injection ▪ 33,000 bwpd in 2023
Slide 13: Optimise Operational Wells & Infrastructure
Optimise Operational Wells & Infrastructure Oil Rate kbopd (Gross) 40 30 20 10 0 Portfolio of Light Well Interventions Gas lifts ▪ Adding ~150 bopd per intervention ▪ Adding 75-150 bopd per well 157 wells ▪ Further 45 interventions in 2024 ▪ Assessing 10 interventions ▪ $500k per LWI ▪ $300k per act
Slide 14: Increase Recovery Through Infill Drilling
Increase Recovery Through Infill Drilling Oil Rate kbopd (Gross) 40 30 20 10 Opportunity 0 ▪ No infill wells drilled for > 10 years ▪ Over 20 opportunities identified ▪ Initial drilling planned for 2026/2027 Next Steps ▪ Identification of wells & ranking ongoing ▪ Integrate into fieldwide gas manage
Slide 15: Develop Satellite Discoveries
Develop Satellite Discoveries Oil Rate kbopd (Gross) 40 30 20 10 Opportunity 0 ▪ Incremental production from existing discoveries with significant OIIP ▪ > 300 mmbo (3/05A) ▪ > 200 mmbo (Bufalo Norte 3/05) Next Steps ▪ Low-cost phased development concepts under review ▪ Ranking opportunities to phas
Slide 16: Delivering Material Organic Growth
Delivering Material Organic Growth 40 Stabilise and Sustain Production 30 Optimise Operational Wells and Infrastructure Oil Rate kbopd (Gross) Increase Recovery through Infill Drilling 20 Develop Satellite Discoveries 10 Phased approach to control capital requirements 0 Delivering cash flow while re
Slide 17: Significant Onshore Potential
Significant Onshore Potential Rejuvenation of existing & abandoned basin 1960s/70s Basin produced over 15,000 Kwanza Opportunity bopd in the 1960’s & 1970' ▪ Under-explored basin covering 25,000 km2 1980s/90s ▪ 11 fields discovered; largest >200 MBO OIIP Onshore activities ceased ▪ Opportunity to ap
Slide 18: Near & Long-term Avenues for Growth
Near & Long-term Avenues for Growth West African Oil Producing Countries Maximise Value from Core Assets 2024 Production ▪ Optimising existing base production ▪ Increase recovery through well works and infill drilling ▪ Further life extension through development of satellites >5mmbl/d LIFE OF DISCOV
Slide 19: Value & Growth Proposition
Value & Growth Proposition Assembled portfolio with significant Alignment with partners as we seek to upside potential to be realised over optimise production and reduce coming years emissions profile Strong asset cash flow profile will Keen focus on balance sheet strength & generate ~$50m p.a. with
Slide 20: APPENDIX
APPENDIX Afentra plc 20
Slide 21: Afentra's Founding Principles
Afentra’s Founding Principles The Global Energy Transition will take time. Hydrocarbons are part of the transition and will continue to remain important in the overall energy mix. It is vitally important that we responsibly manage what has already been found. The socio-economic impact of the energy
Slide 22: Strengthened Board and Team
Strengthened Board and Team Deep experience and expertise across Africa Paul McDade Ian Cloke Anastasia Deulina Jeffrey MacDonald Gavin Wilson Thierry Tanoh Chief Executive Officer Chief Operating Officer Chief Financial Officer Chairman Non-Executive Director Non-Executive Director Joined 2021 Join
Slide 23: Partnerships for Success
Partnerships for Success Partnership Model ▪ Strategic alignment on asset outlook and sustainability agenda ▪ Aligning with operators with proven capabilities ▪ Materiality of interest to ensure relevance and influence ▪ Influence through leveraging of technical expertise ▪ Partner credibility and a
Slide 24: Block 23: Highly Prospective Exploration & Appraisal Asset
Block 23: Highly Prospective Exploration & Appraisal Asset Large Block located in the Kwanza Basin with a working petroleum system ▪ 40% non-operated interest ▪ Almost 5,000 km2 in water depths from 600 to 1,600m ▪ In proximity to TotalEnergies Kaminho future deepwater development Contains Azul oil
Slide 25: Odewayne Block, Somaliland
Odewayne Block, Somaliland ▪ Company is fully carried by Genel ensuring no cost impact forward ▪ 2D geophysical survey acquired in 2017. Reprocessed in 2019, integrated with field data and legacy geological field studies ▪ In 2023 geochemical analysis of seeps and Bahadhamal water well identified Up
Slide 26: History of the Asset
History of the Asset Impala Palanca First Oil: 1992 First Oil: 1985 STOIIP: 60 mmbbls STOIIP: 587 mmbbls RF at 19% RF at 47% 3/05 ▪ Initial development phase 1983 – 1997 Pacassa by ELF/Total First Oil: 1986 ▪ Sonangol P&P operator since 2005 STOIIP: 1103 mmbbls ▪ Located 37km offshore, 60-100m water
Slide 27: Why Angola?
Why Angola? Abundant Resources Government Support Angola is Africa's second-largest oil The Angolan government is actively producer, with vast untapped reserves. seeking to attract foreign direct High quality mid-life assets primed for investment, offering incentives such as optimisation following p
Slide 28: Angola's Positive Transition
Angola’s Positive Transition 2017 GDP: ▪ Mr Lourenço becomes president in elections replacing José Eduardo dos Santos, who $106.7bn (World ranking 68, World Bank 2022) ruled Angola for nearly four decades after independence in 1975 and through a long civil war that ended in 2002. Population: 35.6mn
Slide 29: Production Sharing Contract (PSC) Mechanics
Production Sharing Contract (PSC) Mechanics Schematic Representation Illustrative Scenario Assuming Full Cost Recovery Key Fiscal Terms Block 3.05A Block 3.05 (Producing) Gross Revenue A Cost oil limit 75% 50% (100%) Profit oil sharing B State profi t oi l s ha re 60% 30% C Contra ctor Group (CG) pr
Slide 30: Uniquely positioned to capitalise on the African Energy Transition
Uniquely positioned to capitalise on the African Energy Transition 1. 2. 3. 4. 5. Significant hydrocarbon Gap in market for Proven team Committed to African Energy Transition resource base in Africa credible operators to with significant responsible stewardship provides compelling with material M&A