Member Info for jt2017

Hi KnC, I think that September was mentioned as the estimated completion date for the the original pre-emption with Azule. The latest Enog deal mentions end of 2026 for estimated completion and it seems likely that this will be extended by around 3 months if the new Etu pre-emption is successful. I would hope Char have some involvement, as the timing would suit us re-earnings. Also expect another partner, maybe Trident Energy, who already operate the 14K block to be involved to cover the deepwater operator clause. IMHO

Oiltdr, your thoughts?

It will be interesting to see how this plays out, as I don't think Etu have deepwater operator experience, which is one of the conditions for the block. The Enog deal does not mention a deposit, so probably just transaction funds needed upfront. Char will probably be able to release up to $100M via the shell deal, if they are included. Maybe, another third party could be involved, or perhaps Etu just forcing Enog to make a deal. IMHO

I think they struggled to get an ipo off the ground for the renewables. At the agm, they mentioned a possible sale, but only if the price was right. The Angola deal has thrown a curveball, so maybe they might not need to sell the renewables after all. It will be interesting to see the forecast / timings for Angola earnings. At the current oil price, it must be closer than first anticipated. IMHO

Hi Surfit, agreed, Etu are using the threat of pre-emption to squeeze Enog for a deal. Not sure if we will have any involvement.

Anchois - I still think the hold up is connected to ONHYM's conversion to a joint stock company. Hopefully the bill will pass royal ascent soon. IMHO

Https://www.africaintelligence.com/southern-africa-and-islands/2026/05/12/etu-energias-presses-energean-for-more-say-in-block-14-after-chevron-s-exit,110732378-art

Hi Surety, agree, it should be this week if it is going to happen. If no pre-emption, then I assume that the Shell drawdown can only be used by Etu against another producing asset, rather than any development of existing assets? IMHO

Interesting article on the prospective Enog acquisition. Highlights the pros / risks, which is a good read through comparison for our current deal. Also states pre-emption time limit is normally 30-60 days:

https://www.linkedin.com/pulse/chevron-sells-angola-oil-blocks-energean-timothy-kisembo-xcm7f

The Charge doc implies that Etu can draw down on the loan, but Char provides the security. Note that they have decided upon $150M, not $170M.

“(A) The Assignor is entering into this Deed of Assignment in connection with the up to USD150,000,000 acquisition prepayment facility agreement dated 17 March 2026 and made between Etu Energias Block 14 B.V., Etu Energias Overseas Block 14 B.V. and SWST (the Prepayment Facility Agreement).

(B) The Assignor has agreed to provide Security to the Secured Parties to secure the payment and discharge of the Secured Obligations on the terms of this Deed of Assignment.”

Hi KnC, I believe that the shell loan is arranged with char, not Etu. There is a registration of Charge on the Chariot Holdings sub to cover it. IMHO

Recent statement from Etu:

“Angola's energy must be produced by Angolans. More than just producing…It's about developing the country.” So I would expect Etu to pre-empt Enog if they can find the funding.

Looking at the recent presentation slide showing the latest estimated final payment for the current deal, it appears from the graph to be around $40M. We have the $150M facility with Shell, so will probably just need to fund any transaction costs, if we were to become involved in any new deal with Etu. IMHO

While we wait for the Angola deal to be finalised, just looking at a similar company with an oil producing asset for comparison.

Afentra is producing around 6K bopd net from Angola and has a current market valuation of around £178M:

https://www.lse.co.uk/ShareChat.html?ShareTicker=AET&share=Afentra-Plc

Gives us an idea of our prospective valuation for Angola. IMHO

Just a linkedin post:

https://www.linkedin.com/posts/onhym_investinafricanenergy-onhym-energyleadership-activity-7453085390896295936-YsxQ

They are going for a higher % though, so the earnings will be higher. Final cost could be a lot lower by the end of 2026.

So Oiltdr, I know that you weren't happy re- the share dilution, but what do you think now about the deal with the current oil price?

Hi KnC, it looks like Energean is not paying a deposit, the whole deal being financed by a loan. So maybe Char just needs to fund any transaction costs and bring in Shell?

I'm unable to find any mention of a cash deposit required in the deal announced by Energean to acquire Chevron's Angola block 14 asset. If that is true, then Etu may pre-empt again if they can engineer another deal. They probably have another month before their pre-emption rights expire. Chariot seem to be keen on making upstream the priority and working with Etu again. Things could become interesting in the next few months. IMHO

Looks like the purpose for the Chariot Holdings sub created in Jan is for managing the Shell loan / Angola:

https://find-and-update.company-information.service.gov.uk/company/16975450/filing-history

Yes, seems too good to be true, but I think the deal has become a lot more attractive because of the current oil price. Slide 10 on the presentation explains all.

Hi Marland, Whimax, I think you answered 4 via the answer in 2. The final consideration will be reduced by the earnings from Jan 25 to the date of completion. There will be extra payments triggered by the recent rise in oil price, but overall a high oil price is positive for us.

I wonder what was offered for the renewables business last year?

Hi Surfit, I had one question answered regarding the oil price effect / extra payments. I also asked if the ONHYM transformation to a joint stock company was delaying any Anchois partnering discussions, but that did not get mentioned.

Yes, I think DW said it’s not a 4000bopd cap, but a %. So we benefit if they produce more.