Maurel & Prom S.A.: Signing of an SPA to acquire additional interests in Blocks 3/05 and 3/05A in Angola

Maurel & Prom (M&P) has agreed to acquire a 5% interest in Block 3/05 and a 6.67% interest in Block 3/05A in Angola for an initial $23 million, expanding its footprint in the region. The acquisition from Etu Energias S.A. also includes a contingent consideration of up to $11 million tied to oil prices, production, and development milestones, and is expected to close in the second half of 2025. M&P's CEO cited the transaction as a step toward long-term value creation in Angola, reinforcing their commitment to stable, producing assets.

Analysis

Etablissements Maurel & Prom S.A. (M&P) is strategically expanding its Angolan footprint through an agreement to jointly acquire, with Afentra plc, Etu Energias S.A.’s interests in Blocks 3/05 and 3/05A. M&P will secure an additional 5% interest in Block 3/05 and a 6.67% interest in Block 3/05A for an initial cash consideration of $23 million, funded from its existing cash resources and credit facilities, which stood at $377 million as of March 31, 2025. The transaction carries an effective date of December 31, 2023, and includes potential contingent payments up to $11 million, linked to oil price thresholds (e.g., Brent between $75-$123 per barrel), production performance (e.g., gross production exceeding 15,000 bopd for Block 3/05), and the successful development of existing discoveries on Block 3/05A by December 2029. This acquisition will increase M&P's total working interest to 25% in Block 3/05 and 33.33% in Block 3/05A, assets which reported gross production of 21,300 bopd and 800 bopd respectively in Q1 2025. The CEO emphasized this move aligns with M&P's strategy for long-term value creation in Angola, reinforcing its commitment to stable, producing assets with development upside. The strongly positive sentiment (0.75 general, 0.8 for MAU ticker) surrounding this announcement suggests market approval for M&P's enhanced position in these mature offshore blocks, with closing anticipated in the second half of 2025.

Key Decisions for Investors

• Investors should view this acquisition as a positive strategic step that enhances Maurel & Prom's production profile and reserves in a core operational area, financed prudently from existing resources with a capped, performance-linked contingent consideration.
• It is advisable to monitor the progress towards deal completion, expected in H2 2025, and subsequent updates on production levels and the development of the Caco-Gazela and Punja discoveries, which could unlock further value and trigger contingent payments.
• Factor in the increased exposure to Angolan operational dynamics and Brent crude oil price volatility, as the larger stakes in Blocks 3/05 and 3/05A will have a more pronounced impact on M&P's financial performance.