London-listed oil and gas company, Afentra, has requested the temporary suspension of its shares from trading on AIM. This suspension follows the company’s plans to announce and publish an admission document regarding their offshore acquisitions in Angola.
Afentra (Angola), a subsidiary of Afentra, has entered into a sale and purchase agreement (SPA) with Azule Energy Angola Production. Under this agreement, Afentra will acquire interests in two offshore blocks for a total of $48.5 million. Additionally, there will be deferred contingent payments of up to $36 million, depending on oil price, production, and development conditions.
Specifically, Afentra will purchase a 12% interest in Block 3/05 and up to a 16% interest in Block 3/05A, located offshore Angola.
In another development, the company has decided to amend the terms of their SPA with Sonangol Pesquisa e Producao. As a result, the interest acquired in Block 3/05 will be reduced from 20% to 14%. Consequently, the firm and contingent consideration will decrease to $56 million and up to $35 million, respectively. This strategic decision aims to ensure support for the additional transactions and maintain an appropriate balance of equity interests in Block 3/05.
The shares of Afentra will remain suspended until the admission document is published or an announcement is made confirming that the amended Sonangol acquisition and the Azule acquisition will not proceed.
Afentra anticipates that the admission document will be released early in the fourth quarter. Both transactions, subject to shareholder approval, are expected to be completed within that quarter.