Afentra to acquire further interest in Angola blocks
By Josh White
Date: Thursday 19 Jun 2025
(Sharecast News) - Afentra announced on Thursday that it has agreed to acquire further non-operated interests in offshore Blocks 3/05 and 3/05A in Angola from Etu Energias, in a transaction that would deepen its exposure to what it describe as high-margin, long-life production and development assets.
Under the deal, Afentra said it would acquire a 5% interest in Block 3/05 and a 6.67% interest in Block 3/05A for a total initial consideration of $23m, to be funded from existing cash resources.
The AIM-traded firm said the transaction, signed via its wholly-owned subsidiary and in partnership with Maurel & Prom (M&P), would be subject to customary conditions including Angolan government approval.
It said the effective date was 31 December 2023.
"This transaction enhances the alignment within the joint venture and reinforces our exposure to these high-quality production and development assets that continue to perform strongly," said chief executive officer Paul McDade.
"The structure of the transaction reflects our disciplined approach to capital deployment, combining a modest upfront payment with a value-linked contingent consideration."
Afentra said it could also pay up to $11m in additional contingent payments.
Those would include up to $6m based on oil prices and production levels in 2025 and 2026, and up to $5m linked to first oil from the Caco-Gazela and Punja discoveries, provided certain price and volume thresholds were met before the end of 2029.
The company noted that 2024 profit before tax attributable to the Etu interests was $14m.
It said the transaction was structured on a cash-free and debt-free basis, with working capital and inventory adjustments expected to reduce the final consideration at completion.
Following completion, Afentra's interest in Block 3/05 would increase to 35%, and in Block 3/05A to 28%.
Sonangol remained the operator of both blocks with 36% and 33.33% respectively, while M&P and NIS Naftagas rounded out the joint venture.
Afentra said completion was expected in the second half of 2025.
At 1559 BST, shares in Afentra were up 8.05% at 51p.
Reporting by Josh White for Sharecast.com.
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