Afentra Share Discussion Threads

[x54v] 24/10/2022 17:05

A couple of chunkier buys today - 100k and 200k.

Somebody loading up in anticipation of deal completion perhaps.

[mount teide] 22/10/2022 00:31

Angolan block 3/05 - FSO Palanca

FSO Palanca was towed 7,200 miles to the Sembawang Shipyard at Singapore in late 2012 to undergo dry docking/Special Survey. And to carry out a major programme of structural inspections, repairs, maintenance and upgrades to extend the commercial life of the ship by up to a further 20 years - 2032 is the current commercial life expectancy of the field.

The programme of work included:

* Renewal of the entire cargo pipeline system and cargo pumps.

* Hull cleaned, inspected, shot blasted and coated

* All cargo and ballast tanks cleaned, inspected, shot blasted and coated

* Electrical systems - Renewal of all cabling

* Accommodation enlarged from 30 to 60 people to carry more maintenance staff.

Estimated cost: $35-$40m


Some photos of Palanca at the at the yard in April 2013

[llygad] 21/10/2022 23:23

Many thanks for the feedback.

[devonlad] 21/10/2022 16:32

llygad, the majors do it all the time if it doesn't fit in with their plans. You might find a good investment strategy to buy in small oil companies that are picking up these types of assets on the cheap rather than having to put a drill bit in the ground, there are a few off them. MT is the expert.

[x54v] 21/10/2022 16:02

And from 3:05 in



"The Angolans are looking ahead and saying these majors are re-arranging their portfolios given the energy transition. Some of these assets are maturing now, not necessarily attractive to the majors. So who's going to fill that void"

[llygad] 21/10/2022 14:48

Can anyone explain why Sonangol would sell such a cash generative asset at such an apparent crazy valuation? I have no expertise in this field but it does not seem to make commercial sense. What am I missing?

[devonlad] 20/10/2022 16:33

SQ, I wouldn't write this off at all. When the deal does get finalised, it will be on an absolutely crazy valuation at this price!

[septimus quaid] 20/10/2022 13:56

I'd long written off my holding in Afentra (SEY), so thanks for the input guys.

[mount teide] 20/10/2022 12:12

Yep, increasing by circa $7.5m a month.

A mid December completion date for both would suggest the potential for circa $60m of accrued benefit.

[devonlad] 20/10/2022 11:59

Thanks MT, so roughly speaking $45m.

Afentra acquires additional interests in Angola

Afentra plc ('Afentra' or the 'Company') is pleased to announce that its wholly-owned subsidiary, Afentra (Angola) Ltd, has signed a Sale and Purchase Agreement ('SPA') with INA - Industrija Nafte, d.d. to acquire a 4% interest in Block 3/05 and a 5.33% interest(1) in Block 3/05A, offshore Angola (the "INA Transaction"). This transaction builds upon the acquisition of a 20% interest in Block 3/05 from Sonangol announced in April 2022 (the "Sonangol Acquisition"). The INA Acquisition has an effective date of 30(th) September 2021.

Transaction Highlights:

-- Strategic Rationale - Incremental acquisition builds upon Afentra's strategic entry into Block 3/05, a mature, shallow water, production asset with material upside

-- Block 3/05 - Acquisition results in a combined equity ownership of 24%(2)

o Initial consideration of $9 million

o Additional consideration of $10 million, payable upon licence extension(3)

o Contingent consideration of up to $6 million over 3 years, subject to certain oil price hurdles and an annual cap of $2 million

-- Block 3/05A - Acquisition of 5.33% interest in a license adjacent to Block 3/05, providing the opportunity to tie back existing discoveries to the Block 3/05 infrastructure

o Initial consideration of $3 million

o Contingent consideration of up to $5 million linked to the successful future development of certain discoveries and oil price hurdles

-- Combined Interests - the INA Transaction and the previously announced Sonangol Acquisition are expected to be financed through new debt facilities and existing cash, discussions with selected debt provider are well advanced

o Combined 2P reserves of 24 million barrels and production of 4,680 bbl/day

o Overall low-cost entry with implied acquisition cost of $4/ 2P bbl(4)

o Attractive asset breakeven economics of $35/bbl

o Average net FCF after capex of $35 million p.a. @ $75/bbl over next 5 years

o Payback in less than 3 years at $75/bbl based on 2P production alone

o Initial consideration of $80 million

o Additional contingent consideration of up to $50 million to be paid in respect of each of the ten calendar years commencing 1 January 2023

o Stable production of c.4,000 bopd net with strong cashflow

o Net 2P reserves of c.20 million barrels(1)

o Oil in Place of over 3 billion barrels(1) provides significant resource upside

o Highly attractive asset economics with low breakeven oil price of $35/bbl

o To date, decommissioning costs have been pre-funded by previous and existing JV partners

-- Block 23 - acquiring 40% non-operated interest in a highly prospective deepwater exploration and appraisal opportunity for a consideration of $0.5 million

-- Funding - expected to be financed through new debt facilities and existing cash on the balance sheet. Discussions with prospective debt providers well advanced

BOFP then they have generated enough cash already to cover 50% roughly of the initial consideration?

[mount teide] 20/10/2022 11:36

The 4% working interest Block 3/05 acquisition has an effective deal date of 30th September 2021, while the 20% working interest acquisition in the same block has a 20th April 2022 effective date.

The Terms of the Deals state Afentra will receive the accrued barrels from the effective date of each deal for their working interest(percentage shareholding) of production, through to the completion date.

Estimated Afentra barrels accrued to date:
4% Deal - 320,000 bbls
20% Deal - 744,000 bbls

Total - 1.06 million bbls

FCF is $35/bbl at $75 Brent, so at $95 Brent its likely to be in the $45-$48 range.

[x54v] 20/10/2022 10:02

"This does appear to be just what it says on the tin, a prudent measure to ensure that the deal goes ahead as announced. Although released out of hours I have no concerns that it is market sensitive and I remain supremely confident that these deals will be incredibly good news once they are completed."

[septimus quaid] 20/10/2022 09:28

Where is this cash coming from, they haven't completed the deal yet?

In Afentra's half year results (dated 27 September 2022) there was no mention of any income.

[devonlad] 20/10/2022 09:23

MT roughly speaking, what are they now generating per month?

That leaves them with a nice war chest for more aquisitions!

[mount teide] 19/10/2022 21:53

Operating cash flow generated from the effective date of the two acquisitions is now circa $60m, increasing at $9m a month.

The 4% acquisition - to date has generated operating cash flow from the effective date close to DOUBLE the headline price!

The 20% acquisition - a completion in late November should see the overwhelming majority of the headline price paid off from cash due to Afentra.


When Jadestone Energy bought oil assets from Petronas Malaysia last year, on completion 6 months later, the cash they were due from the effective date paid off the $9m headline price - plus on top they got a cheque for $9.2m and the assets that were producing 6,500 bopd.

[mirabeau] 19/10/2022 18:07

RNS

Update on the Angolan Acquisitions

Afentra plc ('Afentra' or the 'Company') provides the following update regarding the previously announced Angolan acquisitions.

Sonangol Acquisition

On 28 April 2022, the Company announced that its wholly-owned subsidiary, Afentra (Angola) Ltd, had signed a sale and purchase agreement (the 'SPA') with Sonangol Pesquisa e Producao S.A. ('Sonangol') to purchase non-operating interests in Block 3/05 and Block 23, offshore Angola (the 'Sonangol Acquisition'). As set out in the admission document published by the Company on 10 August 2022, the Sonangol Acquisition is subject to a number of conditions precedent (the 'CPs'), including the receipt of governmental approvals and the extension of the Block 3/05 Production Sharing Agreement until at least 31 December 2040.

The Company remains in discussion with all relevant parties and expects to finalise the Sonangol Acquisition in Q4 2022, as previously guided. Whilst we remain on track to achieve this timing, satisfaction of the CPs is anticipated to occur after the current long-stop date of 20 October 2022. The Company are therefore pleased to announce it has reached an agreement with Sonangol to extend the long-stop date to 31 December 2022 in order to facilitate satisfaction of the CPs in Q4 2022.

INA Acquisition

On 19 July 2022, the Company announced that its wholly-owned subsidiary, Afentra (Angola) Ltd, had signed an SPA with INA - Industrija Nafte d.d. ('INA') to purchase interests in Block 3/05 and Block 3/05A, offshore Angola (the 'INA Acquisition'). As set out in the admission document published by the Company on 10 August 2022, the INA Acquisition also remains subject to a number of CPs. Given the progress made to date, there is not considered to be any requirement to extend the long-stop date pursuant to the INA Acquisition at this time, as set out in the Company's admission document.

The Board looks forward to providing shareholders with further updates on both transactions, as appropriate, in due course.

Commenting on the update, CEO Paul McDade said:

"We are pleased to provide this update on the Sonangol and INA acquisitions and remain confident, having engaged with local authorities and counterparties in Angola earlier this month, that the transactions will complete within the previously guided timeline (Q4 2022). On the Sonangol Acquisition, we consider the extension of the long-stop date as a prudent measure to ensure that the conditions precedent can be satisfied within the agreed timeframe. We look forward to completing both transactions and working with Sonangol and the other partners to optimise production and extend the life of these quality, long-life assets."

[1senn] 15/10/2022 09:52

Anyone got a completion valuation to share price end of year here must be closer to 40p then 30p?

[x54v] 14/10/2022 12:38

Multiple director purchase RNSes since re-listing with 4 directors buying in the market.

£358k worth of shares bought by the directors in total with an average overall buy price of 25.2p and a high paid of 30.91p

With so many recent purchases, they clearly see strong upside from the current level.

Follow the money.

[x54v] 08/10/2022 22:09

Some coverage:

[mount teide] 08/10/2022 10:42

Yes, encouraging to see her adding significantly at the present s/p.

Anastasia Deulina CFO

'Anastasia’s multicultural upbringing and over 20 years of working in the energy sector within global, multinational investment banks, private equity and corporates has given her extensive experience in strategy development, deal origination, structuring and execution, M&A and business transformation.

Her primary focus is always on driving sustainable business growth that has a visible positive impact on the bottom-line. This, along with her significant prior board experience, both as a NED and committee member, and her strong global business development and financial network means that Anastasia provides expert leadership as Afentra’s CFO.'

[x54v] 07/10/2022 15:48

Further director buying today. The CFO this time.

RNS just out.

[wbodger] 06/10/2022 08:59

Not upset, and I made a copy to read at leisure just in case it vanished, which does happen. Having read it I'm glad I didn't invest and sympathise that you did.

It's just that I don't see a link to Afentra. That's all I posted.

I agree generally with the criticism of the Nomad, which do seem to be a useless feature of AIM.