Afentra PLC (AIM: AET) has shared an update about its previously announced acquisitions in Angola.
Sonangol Acquisition Update
We are delighted to announce that an Executive Decree for the formal approval of the extension period for the Block 3/05 license has been issued, effectively extending the production sharing agreement (PSA) until December 31, 2040. The decree has been published in the Diário da República. The recent accord between the Block 3/05 JV partners and ANPG (the Angolan Oil & Gas regulator) about the terms of the license extension, which was announced on May 10, 2023, will now facilitate the progression of the improved fiscal terms linked with the extension towards formal endorsement.
The approval of the license extension term meets a crucial precondition under the Sonangol Sale and Purchase Agreement (SPA). Sonangol, in its capacity as the seller, is currently seeking the necessary government endorsements for the transaction, which is the primary outstanding precondition. We are on course to complete this by June 30, 2023.
INA Acquisition Update
As highlighted on May 10, 2023, the successful extension of the license satisfies the condition in the INA-Industrija d.d. (INA) SPA for the disbursement of $10m of contingent consideration to INA. This sum was formerly held in an escrow deposit upon the conclusion of the INA acquisition.
The Company anticipates sharing more updates with its shareholders soon.
CEO Paul McDade commented on the update, saying:
“The approval of the Block 3/05 license extension marks a significant step towards the completion of the Sonangol transaction. We are happy with the progress we have made in the past few weeks and remain confident of concluding this transaction within the timeframe we had previously outlined.”
