Offshore staff
LONDON, UK — Afentra (Angola) Ltd., a subsidiary of Afentra Plc, has signed a sale and purchase agreement with INA – Industrija Nafte, d.d. to acquire a 4% interest in Block 3/05 and a 5.33% interest in Block 3/05A offshore Angola.
This transaction builds upon the acquisition of a 20% interest in Block 3/05 from Sonangol announced in April. The INA acquisition has an effective date of Sept. 30, 2021.
Afentra says the incremental acquisition builds upon its strategic entry into Block 3/05, a mature, shallow-water, production asset with material upside.
The Block 3/05 acquisition results in a combined equity ownership of 24%. Details of the acquisition include an initial consideration of $9 million; additional consideration of $10 million, payable upon license extension; and a contingent consideration of up to $6 million over three years, subject to certain oil price hurdles and an annual cap of $2 million
The Block 3/05A acquisition of 5.33% interest in a license adjacent to Block 3/05 provides the opportunity to tie back existing discoveries to the Block 3/05 infrastructure. Details of the acquisition include an initial consideration of $3 million and a contingent consideration of up to $5 million linked to the successful future development of certain discoveries and oil price hurdles
The INA transaction and the previously announced Sonangol acquisition are expected to be financed through new debt facilities and existing cash, and discussions with selected debt provider are well advanced.
Details of these combined interests include combined 2P reserves of ~24 MMbbl and production of ~4,680 bbl/d; overall low-cost entry with implied acquisition cost of ~$4/ 2P bbl; attractive asset breakeven economics of $35/bbl; average net FCF after capex of ~$36 million p.a. at $75/bbl over the next five years; and payback in less than three years at ~$75/bbl based on 2P production alone.
07.19.2022
