RE: Licence extension.19 Feb 2023 10:41
Angolan Acquisitions
The Company announced two strategically consistent and complementary transactions in Angola, signing sale and purchase agreements ('SPAs') with completion expected in Q4 2022 (together the 'Acquisitions'):
· Sonangol Acquisition: acquisition of interests in Block 3/05 (20%) and Block 23 (40%) offshore Angola for a firm consideration of $80.5 million and contingent payments of up to $50 million;
· INA Acquisition: acquisition of interests in Block 3/05 (4%) and Block 3/05A (5.33%)2 offshore Angola for a firm consideration of $12 million and contingent payments of up to $21 million;3
· Financing Agreements: Sonangol and INA Acquisitions will be financed through cash on the balance sheet and agreed RBL and revolving working capital facilities with Trafigura:
o 5-year RBL facility with up to $75 million available to finance the Acquisitions (8% margin over 3-month secured overnight financing rate (the 'SOFR')) (the 'Acquisition Facility');
o Revolving working capital facility for up to $30 million to finance asset funding requirements between crude offtakes (4.75% over 1-month SOFR) (the 'Working Capital Facility').
· Offtake Agreement: The Company has also entered into an offtake agreement with Trafigura for Afentra's crude oil entitlement lifted from the Acquisitions.4