TIDMAET
RNS Number : 7007A
Afentra PLC
27 September 2022
27 September 2022
AFENTRA P L C
2022 HALF YEAR RESULTS
Afentra plc ('Afentra' or the 'Company'), the upstream oil and
gas company focused on acquiring mature production and development
assets in Africa, announces its half year results for the six
months ended 30 June 2022 (the 'Period').
Financial S ummary
-- Cash resources as at 30 June 2022 of $27.1 million (30 June 2021 of $40.8 million)
-- Additional restricted funds of $8.0 million(1)
-- Adjusted EBITDAX loss of $1.2 million (1H 2021: loss $1.5 million)
-- Loss after tax of $2.9 million (1H 2021: loss $2.4 million)
-- The Group remains debt free and fully carried for Odewayne operations
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)
AIM Re-admission Process
-- AIM Admission Document was published on 10 August 2022.
Suspension of the trading in the Company's shares was lifted and
trading in the Company's ordinary shares recommenced
-- General Meeting: Resolution to approve the Sonangol
Acquisition was passed at the General Meeting held on 30 August
2022
-- Completion of the Acquisitions and re- admission of the
enlarged group to trading on AIM is anticipated in Q4 2022
Operations Summary
Operations pursuant to the ongoing Acquisitions
-- Block 3/05 : Congo basin, Angola (24% interest)(5) - net 2P
reserves of 27.7 mmbo, net 1H 2022 production of c. 4,700 bbl/day,
net 2C resources of 10 mmbo with significant potential for future
upgrades
-- Block 3/05A : Congo basin, Angola (5.33% interest)(2,5) -
three appraised discoveries in adjacent licence to Block 3/05,
providing tie-back opportunities using existing infrastructure; net
2C resource of 1.8 mmbo
-- Block 23 : Kwanza basin, Angola (40% interest)(5) - highly
prospective deepwater exploration and appraisal opportunity that is
largely under-explored containing a small pre-salt oil
discovery
Existing operations
-- Odewayne exploration block : offshore Somaliland (34%
interest fully carried by operator, Genel Energy) - the team
continues its technical assessment and outlook on block
prospectivity in discussion with the operator
Paul McDade, Chief Executive Officer, Afentra plc commented:
"The first half of 2022 marked a transformational period for the
Company, including the foundational asset transaction with Sonangol
enabling entry into Block 3/05 in Angola. Following Period end,
Afentra announced an incremental transaction with INA gaining
additional exposure to the high quality 3/05 block and the adjacent
3/05A block. Combined, these complementary acquisitions provide a
strong growth platform, underpinned by robust cash flow and
significant potential to deliver upside value. The financing and
offtake agreements announced with Trafigura demonstrate our ability
to efficiently fund our focussed buy and build strategy. In August,
we were pleased to recommence trading in Afentra's shares on AIM
and, subsequently, shareholder approval of the Sonangol
transaction. We take confidence that the completion of a smooth
election process and the re-instatement of the government will
allow the Company to re-engage with the Government to achieve
completion of the transactions in Q4 2022. Meanwhile, the Company
continues to remain highly active and disciplined in its assessment
of the opportunity landscape in line with its stated growth
strategy."
For further information contact:
Afentra plc +44 (0)20 7405 4133
Paul McDade, CEO
Anastasia Deulina, CFO
Buchanan (Financial PR) +44 (0)20 7466 5000
Ben Romney
Jon Krinks
Peel Hunt LLP (Nominated Advisor and Joint Broker) +44 (0)20
7418 8900
Richard Crichton
David McKeown
Tennyson Securities (Joint Broker) +44 (0)20 7186 9033
Peter Krens
(1) Please refer to Note 4 (notes to the accounts) for further
detail on restricted funds.
(2) Subject to final approval of the distribution of the China
Sonangol International ('CSI') interest to the remaining joint
venture partners.
(3) $12 million upfront consideration is split $9 million for 4%
interest in Block 3/05 and $3 million for 5.33% interest in Block
3/05A. $21 million in contingent payments broken down as $10
million upon licence extension of Block 3/05 (from 2025 to 2040),
up to $6 million for Block 3/05 subject to certain oil price
hurdles, and $5 million linked to successful future development of
certain discoveries in Block 3/05A.
(4) Subject to the terms of the Trafigura Offtake Agreement.
(5) Subject to completion of the Acquisitions.
CEO Statement
I am pleased to provide an update on Afentra's progress in the
first half of 2022, a period in which we have announced a
transformative inaugural acquisition, enabling the Company to enter
Angola, a major oil and gas jurisdiction with significant
opportunities ahead to build a material business and positively
impact the energy transition in Africa.
The Sonangol Acquisition aligns with the management team's
clearly defined strategic vision set out at launch in May 2021: to
capitalise on opportunities presented by the accelerating energy
transition in Africa and in doing so support a responsible transfer
of asset ownership that provides beneficial outcomes for all
stakeholders involved. The industry trends and market drivers that
formed the basis of Afentra's strategy at the time of launch have
only strengthened this year in terms of a greater emphasis on
energy security and a more pragmatic understanding of the timeline
required for an effective and responsible energy transition.
Following P eriod end , we have been pleased to announce an
incremental and accretive transaction with INA, increasing
Afentra's exposure to this high-quality asset, underpinned by
strong cash flow from stable and long-life production and 28
million barrels of net 2P Reserves, as per the published CPR. With
Trafigura, Afentra have also secured an RBL facility, flexible
working capital facility, and offtake agreement ; combined, these
provi de the financial headroom for the business while limiting the
Company's exposure to offtake risk with the sale and purchase
secured for 100% of Afentra's entitlement to crude oil lifted from
the acquired assets.
In August, we were delighted to recommence trading in Afentra's
shares on the AIM market after the lengthy suspension period
associated with the RTO process, as well as shareholder approval of
the Sonangol Acquisition . We take confidence that a smooth
reinstatement of government in Angola (following the general
election) will help the Company to re-engage with the Angolan
government to achieve completion of the transactions in Q4
2022.
The market landscape in terms of the industry transition that
supports Afentra's long-term growth strategy remains compelling,
despite the current impact of a volatile commodity price
environment, and we remain highly active and disciplined in our
assessment of the opportunity landscape. The initial transactions
in Angola represent the first steps towards our more ambitious
growth targets and demonstrate the value accretion that can be
achieved through the team's disciplined approach to M&A.
To support our business development activities, we continue to
engage with both debt and equity capital markets to ensure we have
supportive investors and access to capital for any deals we bring
to market. We look forward to demonstrating the true value
accretive nature of these initial transactions as we complete them
both in the coming months and begin working with the Operator and
JV partners to optimise production, enhance environmental
performance and realise the material upside value from th e se
licences.
Overall, it has been a transformational first half of the year
for Afentra and we have since made further headway with our stated
growth ambitions. We thank our shareholders for their support and
look forward to delivering positive outcomes for all our
stakeholders through the second half of the year and beyond .
Angolan Acquisitions and Financing Agreements
The Company has announced two strategically consistent and
complementary transactions in Angola, signing sale and purchase
agreements ('SPAs') with completion expected in Q4 2022. The SPA
for the Sonangol Acquisition was signed with Sonangol Pesquisa e
Produção S.A. ('Sonangol') on 28 April 2022. This was to acquire a
20% interest in Block 3/05 offshore Angola for a firm consideration
of $80 million and contingent payments of up to $50 million (in
aggregate) and Block 23 (40%) for a $0.5 million consideration. The
SPA for the INA Acquisition was signed with Industrija Nafte, d.d
('INA') on 19 July 2022. This was to acquire (i) a 4% interest in
Block 3/05 offshore Angola for an initial consideration of $9
million, additional considerations of $10 million and up to $6
million payable upon licence extension and certain oil price
hurdles, respectively; (ii) a 5.33% interest in Block 3/05A
offshore Angola for an initial consideration of $3 million and
contingent consideration of up to $5 million linked to successful
future development of certain discoveries and oil price hurdles.
The Acquisitions will be financed through cash on the balance sheet
and agreed RBL acquisition facility and a revolving working capital
facility agreed with Trafigura. The Company has also entered into
an offtake agreement with Trafigura (the 'Trafigura Offtake
Agreement') to secure the sale and purchase of 100% of Afentra's
entitlement to the crude oil lifted from the acquired assets in
Angola (subject to the terms of the Trafigura Offtake
Agreement).
The Acquisition Facility and Working Capital Facility were
signed with Trafigura on 10 August 2022 with Afentra Angola as
original borrower and the Company as original guarantor. The
Acquisition Facility is a senior secured 5-year RBL facility
agreement for up to $110 million, with up to $75 million available
to finance the Acquisitions ($60 million and $15 million to fund
the Sonangol and INA Transactions, respectively). The terms include
an 8% margin over 3-month SOFR, semi-annual linear amortisations
and conventional RBL covenants. The revolving working capital
facility agreement is for up to $30 million to finance asset
funding requirements between crude offtakes, repayable with the
proceeds from each crude lifting and maturing on the date on which
the Trafigura Offtake Agreement terminates. Interest is payable at
4.75% over 1-month SOFR. Further detail on the Acquisitions,
Acquisition Facility, Working Capital Facility and Trafigura
Offtake Agreement can be found on the Company's website at
www.afentraplc.com and in the admission document .
Operations Review
Angola
Angola is one of the largest oil producers in Africa with
current production of 1.2 million bopd from deepwater, shallow
water & onshore dating back to 1956. The economy is dependent
on responsible management of hydrocarbon resources. Investment has
historically been dominated by IOCs, however assets are starting to
change hands. Afentra believes that the situation is similar to the
status to the UKCS where a more mature industry transition has
already played out. Global research and consultancy business Wood
Mackenzie has identified 15 billion barrels of oil and gas reserves
in Angola, highlighting the scale of opportunity in Angola.
According to IHS Markit Consulting, close to 300 fields have been
discovered with less than half developed (IHS 2022). Over the last
5 years, the Angolan government led by President Joao Louranco has
actively sought new oil and gas investors alongside improving
fiscal terms and extending licenses. There are large opportunities
for growth and limited competition in the independent space.
Block 3/05 (24%)
Block 3/05 is located in the Lower Congo Basin and consists of
eight mature producing fields. The discoveries were made by Elf
Petroleum (now part of TotalEnergies) in the early 1980s.
Development was by shallow-water (40-100m) platforms that included
successful waterflood activities with first oil in 1985. Sonangol
assumed operatorship from 2005 and has focused on sustaining
production through workovers and maintaining asset integrity. No
infill drilling campaigns have taken place in the last 15 years.
The asset has a diverse portfolio of over 100 wells and currently
produces from around 40 production wells and has nine active water
injectors. The facilities include 17 well-head and support
platforms and four processing platforms, with oil exported via the
Palanca FSO.
In the 1H of 2022 average daily gross production was 19,500
bopd. Gross 2P reserves are 115 mmbo as of 1 April 2022 and 2C
resources are 42 mmbo. Block 3/05's existing Production Sharing
Agreement ('PSA') expires in 2025 and this is expected to be
extended to 2040. This extension is a condition to completing the
Acquisition. To date, the asset decommissioning costs have been
pre-funded to the amount of $554 million.
Post completion of the Acquisition, the JV will be comprised as
follows: Sonangol (Operator, 30%), Afentra (24%), M&P (20%),
ENI (12%), Somoil (10%) and NIS-Naftagas (4%).
Block 3/05A (5.33%)
Block 3/05A, which is located adjacent to Block 3/05, contains
the undeveloped discoveries Punja, Caco and Gazela with an
estimated in place resource of 0.3 billion barrels. The 2C
resources estimated by Afentra is 33 mmbo. From 2015 circa two
years of production from the Gazela field via a single well and
fields supported by Block 3/05 infrastructure was undertaken.
Approximately 2 million barrels were recovered prior to a wellbore
driven shut down. There is currently no production from the Block
3/05A fields. Assessments to define an optimal development
framework of these fields benefitting from the use of the nearby
Block 3/05 facilities and infrastructure is ongoing.
Post completion of the Acquisition and subject to final approval
of the distribution of the CSI interest, the JV will be comprised
as follows: Sonangol (Operator, 33.33%), M&P (26.67%), ENI
(16%), Somoil (13.33%), Afentra (5.33%) and NIS-Naftagas
(5.33%).
Block 23 (40%)
Block 23 is a 5,000 km(2) exploration and appraisal block
located in the Kwanza basin in water depths from 600 to 1,600
meters and has a working petroleum system. Whilst the large block
is covered by modern 3D and 2D seismic data sets, with no
outstanding work commitments remaining, the majority of the block
remains under-explored.
The block contains the Azul oil discovery, the first deepwater
pre-salt discovery in the Kwanza basin. This discovery made in
carbonate reservoirs has oil in place of around 150 mmbo and tested
at flow rates of around 3,000 - 4,000 bopd of light oil.
Post completion of the Acquisition, the JV is expected to be
comprised of: Namcor, Sequa and Petrolog (40% and operator);
Afentra (40%) and Sonangol (20%).
Somaliland
Somaliland offers one of the last great opportunities to target
an undrilled onshore rift basin in Africa. The Odewayne block, with
access to Berbera deepwater port less than a 100km to the north, is
ideally located to commercialise any discovered hydrocarbons.
Odewayne Block (34%)
This large, unexplored, frontier acreage position covers
22,840km.(2) The Odewayne PSA is in the Third Period (further
extended through the 8th deed of amendment) with a 1,000km, 10km by
10km 2D seismic grid acquired in 2017 by BGP (this data was
reprocessed in 2019 and is currently being reviewed).
In 2H 2022 the Company will work alongside the Operator in
developing an appropriate forward work program to further evaluate
the prospectivity of the licence. The Company's 34% working
interest in the PSA is fully carried by Genel Energy Somaliland
Limited for its share of the costs of all exploration activities
during the Third and Fourth Periods of the PSA.
Outlook on buy and build strategy
Afentra is leveraging its extensive regional experience and
network to deliver significant value. The initial transactions have
established a foothold in Angola with our acquisition of Block 3/05
and 3/05A and provide a strong foundation for future growth and
consolidation in Angola. Blocks 3/05 and 3/05A are long-life
production and development assets with low decline rate, material
upside and future short-cycle developments, alongside reducing
emission profiles. Screening assets continues across West Africa
and we see similar scale and larger operated and non-operated
opportunities onshore and offshore and an opportunity for new
credible and responsible operators.
Financial Rev iew
Selected financial data
1H 2022 1H 2021 FY 2021
Cash and cash equivalents net to Group ($m) 27.1 40.8 37.7
--------------------------------------------- -------- -------- --------
Restricted Funds 8.0 - -
--------------------------------------------- -------- -------- --------
Adjusted EBITDAX(1) ($m) (1.2) (1.5) (2.0)
--------------------------------------------- -------- -------- --------
Loss after tax ($m) (2.9) (2.4) (5.0)
--------------------------------------------- -------- -------- --------
Debt ($m) - - -
--------------------------------------------- -------- -------- --------
Share price (at period end) (GBP pence) 14.6 15.0 14.6
--------------------------------------------- -------- -------- --------
(1) Adju s t ed EBITDAX is cal c u lat ed as earnings be f ore
int ere s t, taxat i on, depreciation, amor t i sat i on, impa i r
m ent, pr e - l i cence expend i tur e, pr ov isio ns and shar e
-ba s ed pa y m ents.
Loss from operations
T he loss from operations for 1H 2022 was $2.9 million (1H 2021:
loss $2.5 million).
During the period, net administrative expenditure increased to
$2.9 million (1H 2021: $2.5 million) predominantly as a result of
costs relating to the Angolan Acquisitions and its associated
workstreams ($611k). Pre-licence costs for 1H 2022 was $1.6m (1H
2021: $862k).
Adjusted EBITDAX and loss after tax
A d j usted EBI T DAX totalled a loss of $1.2 million (1H 2021:
loss 1.5 million).
Finance inco me of $2k r epre sents inter est r e c eived on
cash h eld by the Group (1H 2021: $46k).
Finance costs totalled $73k (1H 2021: $23k).
The loss after tax totalled $2.9 million (1H 2021: loss $2.4
million). Basic loss per share was 1.34 USc per share (1H 2021:
1.11 USc loss per share). No dividend is proposed to be paid for
the six months to 30 June 2022 (30 June 2021: nil).
Cash flow
Net cash outflow from operating activities (pre-working capital
movements) totalled $2.8 million (1H 2021: outflow $2.3 million).
After working capital, net cash outflow from operating activities
totalled $2.5 million (1H 2021: outflow $1.8 million). During the
period the Company provided a bank guarantee (issued by Nedbank
Limited) to Sonangol, in respect of the Sonangol Acquisitions,
detailed in Note 4.
Statement of financial position
At 30 June 2022, Afentra held $27.1 million cash and cash
equivalents (30 June 2021: $40.8 million) and restricted funds of
$8.0 million.
Group net assets at 30 June 2022 were $55.9 million (30 June
2021 were $61.4 million). Non-current assets totalled $21.8 million
(30 June 2021: $22.0 million) with net current assets reducing to
$34.4 million (30 June 2021: $40.1 million).
Going Concern
T he Group's business activitie s, togeth er with the factors
likely to af f ect its future de v elop ment, performance and
position is s et out above (page 1) and within the CEO State ment
and in the Op erations Re vie w. The financial position of the
Group is de scribed in the Financial R e vie w.
The Group has paid deposits in relation to the disclosed
transactions detailed in Note 5, which may not be refundable under
certain circumstances but otherwise currently has no unconditional,
legally binding commitments in relation to such transactions. In
the event that these deposits are not refunded the Group has
sufficient cash resources for its working capital needs for at
least the next 12 months.
The Directors remain confident the Group has sufficient cash
resources to meet its liabilities as they fall due for a period of
at least 12 months from the date of signing these financial
statements, and notwithstanding the impact from the current
situation in Ukraine and the impact to commodity prices and foreign
exchange rates. As a consequence, the Directors believe that the
Group is in a strong position and thus, they continue to adopt the
going concern basis of in preparing the results for the six months
ended 30 June 2022.
Disclaimer
T his document contains ce r tain forward-looking statements
that are subj ect to the usual risk factors and uncertainties
associated with the oil and gas e xploration and production busines
s. Whilst the Group beli e v es the e xpectation re flected he r
ein to be reasonable in light of the information available to it at
this time, the actual outcome may be materially diff erent owing to
factors eith er beyond the Group's control or oth erwise within the
Group's control but where, for e xample, the Group decides on a
change of plan or strategy. Accordingly, no reliance may be plac ed
on the figures contained in such for ward -looking statements.
Glossary
$ US Dollars
2D two dimensional
------------------------------------------------------
3D three dimensional
------------------------------------------------------
Adjusted EBITDAX earnings before interest, taxation, depreciation,
amortisation, impairment, pre-
licence expenditure, provisions and share based
payments
------------------------------------------------------
AIM Alternative Investment Market of the London Stock
Exchange
------------------------------------------------------
bopd Barrels of Oil per day
------------------------------------------------------
CPR Competent Persons Report
------------------------------------------------------
CSI China Sonangol International
------------------------------------------------------
ERCE Independent and qualified Reserves and Resources
evaluator (CPR)
------------------------------------------------------
Group Afentra plc, together with its subsidiary undertakings
(the 'Group')
------------------------------------------------------
INA Industrija Nafte, d.d
------------------------------------------------------
km kilometre
------------------------------------------------------
mmbo million Barrels of Oil
------------------------------------------------------
Petrosoma Petrosoma Limited (JV partner in Somaliland)
------------------------------------------------------
PSA production sharing agreement
------------------------------------------------------
Seismic Geophysical investigation method that uses seismic
energy to interpret the geometry of rocks in the
subsurface
------------------------------------------------------
Sonangol Sonangol Pesquisa e Produção S.A.
------------------------------------------------------
km(2) square kilometre
------------------------------------------------------
WI working interest
------------------------------------------------------
Condensed consolidated income statement for the six m onths to
30 June 2022
Six months Six months
to to Year ended
30th June 30th June 31st December
2022 2021 2021
$000 $000 $000
(unaudited) (unaudited) (audited)
------------ ------------ --------------
Other administrative
expenses (1,301) (1,605) (2,249)
Pre-licence costs (1,574) (862) (2,734)
-------------------------- ------------ ------------ --------------
Total administrative
expenses (2,875) (2,467) (4,983)
Loss from operations (2,875) (2,467) (4,983)
Finance income 2 46 36
Finance expense (73) (23) (45)
Loss before tax (2,946) (2,444) (4,992)
Tax - - -
Loss for the period
attributable to the
owners of the parent (2,946) (2,444) (4,992)
------------ ------------ --------------
Other comprehensive
expense - items to
be
reclassified to the
income statement in
subsequent periods
Currency translation
adjustments (21) (5) (5)
Total comprehensive
expense for the period (21) (5) (5)
------------ ------------ --------------
Total comprehensive
expense for the period
attributable to the
owners of the parent (2,967) (2,449) (4,997)
============ ============ ==============
Basic and diluted
loss per share (US
cents) (1.3) (1.1) (2.3)
Condensed consolidated statement of financial position as at 30
June 2022
As at As at As at
30th June 30th June 31st December
Note 2022 2021 2021
$000 $000 $000
(unaudited) (unaudited) (audited)
------------ ---------------------------------------- -----------------------------------
Non-current
assets
Intangible
exploration
and
evaluation
assets 3 21,305 21,252 21,289
Property,
plant and
equipment 542 746 725
21,847 21,998 22,014
------------ ---------------------------------------- -----------------------------------
Current
assets
Trade and
other
receivables 290 228 288
Cash and cash
equivalents 27,096 40,772 37,727
Restricted
Funds 4 8,000 - -
35,386 41,000 38,015
------------ ---------------------------------------- -----------------------------------
Total assets 57,233 62,998 60,029
============ ======================================== ===================================
Equity
Share capital 28,143 28,143 28,143
Currency
translation
reserve (223) (202) (202)
Retained
earnings 28,007 33,501 30,953
Total equity 55,927 61,442 58,894
------------ ---------------------------------------- -----------------------------------
Current
liabilities
Trade and
other
payables 836 825 518
Lease
liability 111 120 234
947 945 752
------------ ---------------------------------------- -----------------------------------
Non-current
liabilities
Lease
liability 327 576 347
Long-term
provision 32 35 36
359 611 383
------------ ---------------------------------------- -----------------------------------
Total
liabilities 1,306 1,556 1,135
------------ ---------------------------------------- -----------------------------------
Total equity
and
liabilities 57,233 62,998 60,029
============ ======================================== ===================================
Condensed consolidated statement of changes in equity for the
six months ended 30 June 2022
Currency
Share translation Retained
capital reserve earnings Total
$000 $000 $000 $000
--------------------- ---------------------------- --------- --------
At 1 January 2021 28,143 (197) 35,945 63,891
---------------------------------- --------------------- ---------------------------- --------- --------
Total comprehensive expense for
the period attributable to the
owners of the parent - (5) (2,444) (2,449)
---------
At 30 June 2021 28,143 (202) 33,501 61,442
---------------------------------- --------------------- ---------------------------- --------- --------
Total comprehensive expense for
the period attributable to the
owners of the parent - - (2,548) (2,548)
At 31 December 2021 28,143 (202) 30,953 58,894
---------------------------------- --------------------- ---------------------------- --------- --------
Total comprehensive expense for
the period attributable to the
owners of the parent - (21) (2,946) (2,967)
At 30 June 2022 28,143 (223) 28,007 55,927
---------------------------------- --------------------- ---------------------------- --------- --------
Condensed consolidated statement of cash flows for the six
months ended 30 June 2022
Six months Six months
to to Year ended
30th June 30th June 31st December
Note 2022 2021 2021
$000 $000 $000
(unaudited) (unaudited) (audited)
------------ ------------- --------------
Operating activities:
Loss before tax (2,946) (2,444) (4,992)
Depreciation, depletion
& amortisation 119 119 241
Finance income and
gains (2) (46) (13)
Finance expense and
losses 15 23 45
------------ ------------- --------------
Operating cash outflow
prior to working capital
movements (2,814) (2,348) (4,719)
Increase in trade
and other receivables (2) (35) (95)
Increase in trade
and other payables 318 616 309
(Decrease)/increase
in provision (4) 1 2
Net cash outflow
from operating activities (2,502) (1,766) (4,503)
Investing activities
Interest received 2 11 13
Purchase of property,
plant and equipment (1) (9) (127)
Exploration and evaluation
costs 3 (16) (43) (80)
Net cash used in
investing activities (15) (41) (194)
Financing activities
Principal paid on
lease liability (99) (121) (234)
Interest paid on lease
liability (14) (20) (39)
Increase in restricted
funds 4 (8,000) - -
Net cash used in
financing activities (8,113) (141) (273)
Net decrease in cash
and cash equivalents (10,630) (1,948) (4,970)
Cash and cash equivalents
at beginning of period 37,727 42,674 42,674
Effect of foreign
exchange rate changes (1) 46 23
Cash and cash equivalents
at end of period 27,096 40,772 37,727
============ ============= ==============
Notes to the consolidated results for the six months ended 30
June 2022
1. Basis of preparation
T he financial information contained in this announcement does
not constitute statutory financial statements within the meaning of
S ection 435 of the Co mpanies Act 2006.
T he financial information for the six months ended 30 June 2022
is unaudited. In the opinion of the Directors, the financial
information for this period fairly repre s ents the f inancial
position of the Group. R e sults of operations and cash flo ws for
the period are in compliance with International Financial Reporting
Standards (IFRSs). The accounting policie s, e stimat es and judg e
ments applied are consistent with those disclos ed in the annual
financial statements for the year ended 31 De c e mber 2021. The se
financial statem ents should be read in con junction with the
annual financial statem ents for the year ended 31 De c em b er
2021. All financial information is pres ented in USD, unle ss oth
erwise disclos ed.
An unqualified audit opinion was expressed for the year ended 31
December 2021, as delivered to the Registrar.
The Directors of the Company approved the financial information
included in the results on 27 September 2022.
2. Results & dividends
T he Group has r etained earnings at the end of the p eriod of
$28.0 million (30 June 2021: $33.5 million r etained earnings) to
be carried forward. The Directors do not recom mend the paym ent of
a dividend (1H 2021: nil ).
3. Intangible exploration and evaluation (E&E) assets
Group intangible assets:
Total
$000
(unaudited)
------------
Net book value at 31 December
2020 21,209
------------
Additions during the period 43
Net book value at 30 June
2021 21,252
------------
Additions during the period 38
Net book value at 31 December
2021 21,289
------------
Additions during the period 16
Net book value at 30 June
2022 21,305
------------
Odewayne PSA, Somaliland: A(EA)L 34%, Genel Energy Somaliland
Limited 50%, Petrosoma 16%.
4. Restricted Funds
The Company has provided a bank guarantee issued by Nedbank
Limited to Sonangol in respect of a $8.0 million cash deposit in
respect of the Sonangol Acquisitions that would otherwise have been
required to be paid shortly after the signing of the Sonangol
Acquisition Agreement. This guarantee has been fully cash
collateralised by the Company.
5. Subsequent Events
During the Period (28th April 2022) Afentra plc announced that
its wholly-owned subsidiary, Afentra (Angola) Ltd, had signed a
Sale and Purchase Agreement with Sonangol to purchase interests in
Block 3/05 and Block 23, offshore Angola.
On the 19th July 2022 Afentra plc announced that its
wholly-owned subsidiary, Afentra (Angola) Ltd, had signed a Sale
and Purchase Agreement with INA to acquire a 4% interest in Block
3/05 and a 5.33% interest in Block 3/05A, offshore Angola.
On the 10th August 2022 Afentra plc published its Admission
Document in relation to the acquisitions and Notice of General
Meeting. The resolution to approve the Acquisitions was passed as
an ordinary resolution by the requisite majority at the general
meeting, held on the 30th August 2022.
The Group has paid deposits in relation to the transactions,
which may not be refundable under certain circumstances but
otherwise currently has no unconditional, legally binding
commitments in relation to such transactions.
The next steps in the process contain a number of conditions
precedent that will need to be satisfied or waived before the
Acquisition can be completed. There is, however, no guarantee at
this stage that the Acquisition will be completed.
The measurement of expected credit losses in accordance with
IFRS 9 (Financial Instruments), are not impacted by subsequent
global developments related to the situation in Ukraine and the
impact to commodity prices and foreign exchange rates and are
therefore non-adjusting.
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END
IR EAKNKADLAEFA
(END) Dow Jones Newswires
September 27, 2022 02:00 ET (06:00 GMT)
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