Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Socio-economic Development
• Transparent Governance

Environmental Achievements

• Reduced general and administrative overheads by 15% to $2.2 million (2019: $2.6 million).
• Committed to minimizing environmental impact in field operations and offices.

Social Achievements

• Focus on positive socio-economic impact in African countries.
• Engagement and dialogue with local stakeholders to ensure projects benefit both the Group and the communities.

Governance Achievements

• Established a robust ESG agenda embedded into the core business model and operating structure.
• High ethical standards are a cornerstone of the Group’s business.
• Implemented anti-bribery and corruption policy.

Climate Goals & Targets

Environmental Challenges

• Low commodity prices and market volatility.
• Difficulty in capital raising for new acquisitions.
• License extension uncertainty.
• Fiscal instability.
• Foreign currency risk.
• Country risk (assets located in a non-OECD country).
• Climate change regulations.
• Complex legal and regulatory compliance.
• Concentration of portfolio (reliance on Somaliland asset).
• Competition from larger companies.
• Exploration and production risk.
• Operator and partner risk.
• HSSE incidents or non-compliance.

Mitigation Strategies

• Maintains a strong balance sheet and remains fully funded for existing commitments.
• Continuously assesses existing and proposed assets in light of future capital requirements.
• Maintains active dialogue with investors.
• Holds the majority of its cash in US dollars.
• Monitors political, regulatory, and HSSE changes and engages third-party expertise.
• Seeks to acquire additional core assets to diversify jurisdictional risk.
• Considers climate-related risks in its future growth strategy.
• Accords high importance to corporate governance and operates to high ethical standards.
• Undertakes legal risk assessment and due diligence for all counterparties.
• Employs suitably experienced staff and external advisors.
• Actively seeking to diversify the portfolio by acquiring producing assets.
• Conducts detailed due diligence prior to engagement with prospective transactions.
• Ongoing engagement with shareholders.
• Aims to diversify and manage risk across a portfolio of assets.
• Carefully considers the capabilities of operators and partners.
• All UK staff are able to work from home when required and following UK Government guidelines.

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Regulation of the energy industry to address climate change.

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Socio-economic Impact
• Governance

Environmental Achievements

• Minimising environmental impact in field operations and offices; objective of reducing environmental impact year-on-year

Social Achievements

• Commitment to positive socio-economic outcomes; responsible stewardship and investment in assets; continued benefit of O&G revenues to support longer-term sustainable transition; engagement and dialogue with local stakeholders to ensure projects benefit both the Group and the communities

Governance Achievements

• Developed a robust Governance and ESG framework to support future growth ambitions; highest ethical standards are a cornerstone of the Group’s business; all business activities are reviewed to ensure they meet our standards; systematic procedure supporting the Antibribery and Corruption Policy to reduce the risk of bribery and corruption

Climate Goals & Targets

Environmental Challenges

• Volatile commodity prices; market volatility; counterparty distress; volatile commodity prices impacting buyer-seller expectations; difficulty in capital raising; licence extension uncertainty; fiscal instability; foreign currency risk; country risk; climate change; legal compliance; concentration of portfolio; competition; concentration of shareholder base; failure to negotiate optimal contract terms; inadequate management processes; financial control of non-operated assets; fraud, bribery and corruption; inappropriate corporate strategy; exploration and production risk; operator and partner risk; exploration activities may not result in a commercial discovery; HSSE incidents or non-compliance

Mitigation Strategies

• Strong balance sheet; disciplined lifecycle investment perspective; active dialogue with investors; strong track record of successful fundraisings; holding the majority of cash in US dollars; monitoring political, regulatory and HSSE changes; engaging third-party expertise; diversifying jurisdictional risk; considering climate-related risks; operating to high ethical standards; legal risk assessment and due diligence; employing experienced staff and external advisors; building depth of experience; engaging specialist IT support; protection against external intrusion; diversifying portfolio; detailed due diligence; ongoing engagement with shareholders; key documentation and contract terms; monitoring and amending cost structure, investment strategy and treasury policy; regular Board meetings; diversifying and managing risk across a portfolio of assets; considering technical, HSSE and financial capabilities of operators and partners; enhanced hygiene and sanitation protocols; regular testing; ability to work from home

Supply Chain Management

Responsible Procurement

• Seeking similar standards from business partners, contractors and suppliers

Climate-Related Risks & Opportunities

Transition Risks

• Regulation of the energy industry to address climate change

Reporting Standards

Frameworks Used: TCFD

UN Sustainable Development Goals

• Sustainable Development Goals (SDGs) relating to energy

Proposition will increasingly meet the specific targets of the United Nations Sustainable Development Goals as we progress from acquisition and development through to operatorship and production.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Social
• Governance

Environmental Achievements

• London office electricity from 100% renewable sources, with offsets neutralizing emissions.
• Reduced oil in water discharge from 25ppm to 19ppm in Angola (Block 3/05).
• Zero spills in Angola (Block 3/05).

Social Achievements

• Funded food and drought relief programs for 4,000 families in Somaliland.
• 100% completion of Anti-Bribery and Corruption (ABC) training for all employees and contractors.

Governance Achievements

• Updated Code of Ethics and Business Conduct.
• Reviewed and updated company policies (Health and Safety, Climate Change).

Climate Goals & Targets

Environmental Challenges

• High levels of flaring in Angola (Block 3/05).
• Aging infrastructure in Angola (Block 3/05) impacting water injection.
• Complexity around contractor selection and performance management.

Mitigation Strategies

• Developing concepts and ideas to reduce emissions in Angola, aiming for zero routine flaring by 2030.
• Working with the operator to reinstate and sustain waterfloods in Angola.
• Supporting operators in contractor evaluation and selection procedures.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Storm surges
• Rising sea levels
• Rising mean temperatures

Transition Risks

• Pricing of GHG emissions
• Enhanced emissions-reporting obligations
• Exposure to litigation
• Increased cost of production
• Substitution of existing products
• Changing customer behavior

Opportunities

• Resource efficiency
• Development of low-emission goods/services

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Emissions reduction
• Health and safety
• Asset integrity
• Gas utilization
• Responsible stewardship
• Stakeholder engagement

Environmental Achievements

• Updated CPR completed with 1P/2P/3P reserves of 72/108/145 mmbbls (gross) at 1.1.23 effective date. 2C resources of 43 mmbbls
• Water injection rates increased to average ~45,000 bw/d in Q1 2023
• Ongoing investment in infrastructure to enhance reliability and uptime
• ESG baseline performance study completed identifying potential future improvement projects

Social Achievements

• Strong environmental KPIs targeting continuous improvement
• Annual action plans to reduce emissions based on identification, quantification and categorisation
• Health and safety system monitors standard industry benchmarks (TRIF & LTI)
• Multi-year asset integrity plan in place with annual rolling maintenance program

Governance Achievements

• Highly experienced Board and Executive team
• Developed a robust Governance and ESG framework to support future growth ambitions
• Independent ESG Report commissioned by Afentra

Climate Goals & Targets

Environmental Challenges

• Timeliness of environmental licence management
• Ensuring timely infrastructure inspections
• Rates impacted by downtime due to planned restoration works on power generation and distribution network

Mitigation Strategies

• Regular auditing to identify areas for improvement
• Continued investment and focus on water injection
• Light well interventions ongoing with a further 30 interventions in next 18 months
• Building full understanding of emissions and potential mitigation options

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• 7
• 13

Afentra’s strategy is fully committed to the creation of shared value for all stakeholders. Our proposition will increasingly meet the specific targets of the United Nations Sustainable Development Goals as we progress from acquisition and development through to operatorship and production.