Slide 1: African Energy Transition Investor Presentation Q1 2023
AFRICAN ENERGY TRANSITION Investor Presentation Q1 2023 Afentra plc 0
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
Slide 3: 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 4: Strong market drivers
Strong market drivers Focused on shareholder returns and stakeholder outcomes The opportunity Afentra’s Proposition Africa remains a prolific Oil & Gas region with longevity Experienced leadership team with proven track record and (~100 billion boe, 20 years+) established network in Africa Early sta
Slide 5: Delivering against a focused strategy
Delivering against a focused strategy A Firm Foundation Clear Strategic Focus Initial Acquisitions & Opportunity Screening • Highly experienced Board and • Identified key focus areas with a • Angolan acquisitions demonstrate Executive team clear strategy to acquire production the success of the foun
Slide 6: Angola – a key strategic target
Angola – a key strategic target Why Angola? • One of the largest oil producers in Africa • Current Production of ~1.1 million bopd from deepwater, shallow-water & onshore dating back to 1956 • Economy dependent on responsible management of resources • Investment historically dominated by IOCs, howev
Slide 7: Block 3/05, 05A and 23 overview
Block 3/05, 05A and 23 overview Block 3/05 (Congo basin) – 24% • Material shallow water, long life, low decline asset with extensive infrastructure covering 8 fields • OIIP in excess of 3 billion barrels with only 43% recovery to date • Competent Persons Report published; • Gross 2P reserves increas
Slide 8: Block 3/05 Valuation Summary
Block 3/05 Valuation Summary Gross Annual Average Daily Production Production & reserves potential 40 • 9M 2022 gross production: 19,160 bbl/d (net ~4,600 bbl/d) Gross Oil Rate kbbl/d 30 • Multiple low-cost opportunities to increase future production 20 • Minimal capex required to realise 2P case of
Slide 9: Financing value accretive acquisitions
Financing value accretive acquisitions Sonangol Transaction Funding the Transactions Block 3/05 (20%) and Block 23 (40%) Cash on balance sheet and up to $75 million5 Sources $ million • Effective Date – 20th April 2022 committed RBL debt facility with Trafigura • $80.5 million cash upfront, subject
Slide 10: Environmental & Social Impact
Environmental & Social Impact Independent ESG Report commissioned by Afentra • Identify & assess material environmental, community, social and health and safety risks • Identifies emissions reduction opportunities • Provides baseline for future ESG plans Areas of GHG Improvement identified • Emissio
Slide 11: Transaction timing and next steps
Transaction timing and next steps Sonangol Transaction INA Transaction • SPA signing announcement, shares continue to April’22 be suspended from trading • Completion of due diligence and placement of June 10% transaction deposit bank guarantee • SPA signing announcement, placement of 10% July transa
Slide 12: Next steps for Afentra
Next steps for Afentra Afentra are leveraging extensive regional experience and network to deliver significant value African Pipeline of Opportunities • Foothold established in Angola with initial acquisitions in Blocks 3/05 & 3/05A; long life production asset with low decline rate, material upside
Slide 13: 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
Slide 14: Appendices
Appendices Afentra plc 13
Slide 15: Block 3/05: Material shallow water production asset
Block 3/05: Material shallow water production asset OIIP / Recoverable million bbls Post Deal Interests Bn bbls Company Interest 3 Sonangol 30% Further upside RF >50%1 Afentra 24% M&P 20% 2 42 million 2C1 ENI 12% RF 47% Somoil 10% 115 million 2P1 1 Naftagas 4% RF 46% 1.34 billion Production to EY 21
Slide 16: Block 3/05 overview
Block 3/05 overview Block 3/05 Stable production and cash flow providing self funded near-term growth Fields Palanca, Pacassa, Buffalo, Cobo, Pambi, Oombo, Impala & Impala SE • 9M 2022 gross production: 19,160 bbl/d (net ~4,600 bbl/d) Key dates and licence Discovered 1981-1992, First production 1985
Slide 17: Block 3/05A: Material shallow water development asset
Block 3/05A: Material shallow water development asset OIIP / Recoverable million bbls Post Deal Interests2 Mn bbls Company Interest 300 Sonangol 33.33% M&P 26.67% ENI 16% 200 Further upside Somoil 13.33% ~68 million 3C 1 Afentra 5.33% 33 million 2C1 100 Naftagas 5.33% RF 11% 2.4 million Production t
Slide 18: Block 3/05A overview
Block 3/05A overview Block 3/05A Near term production with short cycle developments Fields Punja, Caco, Gazela • Four well initial development Key dates and licence Discovered 1982, 1986, 1990, First production - history 2015, Production Licence to 2035 • Material production growth potential to >10,
Slide 19: Value accretive acquisitions
Value accretive acquisitions • Back-to-back transactions acquiring a combined 24% WI in Block 3/05, 5.33% WI in Block 3/05A and 40% WI in Block 23 • Acquisition structured to protect downside for Afentra and reward Sellers with a capped portion of upside via contingent payments Detailed Acquisition
Slide 20: 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 • Almost 5,000 km2 in water depths from 600 to 1,600m • Covered by modern 3D and 2D Seismic data set • No work commitments remaining on block Contains Azul oil discovery
Slide 21: Odewayne block, Somaliland
Odewayne block, Somaliland (Size of 4 North Sea Quads) Realising value from a legacy high impact exploration asset Contract Summary Contract type PSA Participants Contract signed 6 October 2005 Genel Energy Somaliland Limited 50% (Operator) Contract effective date 6 October 2005 Afentra plc – SE(EA)
Slide 22: A mature asset with opportunities to grow & improve
A mature asset with opportunities to grow & improve Environmental Management • Strong environmental KPIs targeting continuous improvement • Annual action plans to reduce emissions based on identification, quantification and categorisation • Potential future opportunities to improve gas utilisation w
Slide 23: Overview of B/305 historical performance in terms of Sonangol's HSE KPI's
Overview of B/305 historical performance in terms of Sonangol’s HSE KPI’s Safety Key Performance Index Asset Integrity No. Oil Spills > 1bbl TRIR LTIF • Subsea jacket & riser pipeline • No Oil Spills > 1bbl occurred in the 3.27 inspected period 2019-2021 1.31 • Subsea pipelines due for inspection in
Slide 24: Board of Directors
Board of Directors Experience and expertise Non-Executive board members Jeffrey McDonald (Chairman) Jeffrey MacDonald was a former managing director with private equity firm, First Reserve, with responsibility for investment origination, structuring, execution, monitoring and exit strategy, Paul McD
Slide 25: Driving sustainable value
Driving sustainable value A focused and effective business model with embedded ESG framework 1. 2. 3. 4. Assess & acquire Optimise & produce Reinvest & extend Retire & convert Legacy production assets and Applying proven & innovative Reinvest in incremental activities Responsible stewardship of prov
Slide 26: How Afentra's proposition aligns with UNSDGs
How Afentra’s proposition aligns with UNSDGs Drivers of change Changing responsibly Impactful change Pre-asset acquisition Asset development Asset production Afentra’s focus and planned progression Afentra’s strategy is fully committed to the creation of shared value for all stakeholders. Our propos
Slide 27: Global energy transition
Global energy transition Structural changes to the industry ecosystem “The new North Sea are necessary to achieve global sustainability players riding the wake of the retreating objectives and energy demand majors” Financial Times Drivers of change “What Happens “Oil companies • Climate change and c