7th November 2024
AFENTRA PLC
Operational and Financial
Update
Afentra plc ('Afentra' or the
'Company') (AIM: AET), the upstream oil and gas company focused on
acquiring production and development assets in Africa provides an
operational and financial update for the period 1 January to 31
October 2024.
Operational Highlights
Production and Field
Operation
Redevelopment
works at Block 3/05 facilities,
along with well interventions, continue to result in improved production and water injection
performance. Gross average production to end October 2024,
including the impact of the recent shutdown, for Block 3/05 and
3/05A was 20,575 bopd (Net: B3/05 5,815 bopd; B3/05A 255 bopd).
Post shutdown, gross oil
production rates have averaged 23,000 bopd and water injection
resumed, with gross daily water injection rates averaging around
40,000 bwpd which we expect to increase as further injection
facilities are commissioned.
The next phase of light well
interventions (LWIs) has commenced, with more than 10 LWIs planned before the end of
2024 across several fields, which
will include various stimulation techniques and
reperforation activities.
Whilst the ongoing asset
integrity/reliability works, along with LWIs, continue to deliver
successful outcomes the planning process for the next stage of the
Block 3/05 & 3/05A redevelopment is underway. This phase will
focus on near term well workovers, future infill drilling and
satellite field developments.
Shutdown and Maintenance
Activities
The planned 21-day maintenance
shutdown was successfully completed on schedule in early October
2024. Significant maintenance and upgrade work was carried out,
focusing on power supply improvements, inspection and integrity of
the subsea infrastructure, improved monitoring of water injection
allocation and installation of gas meters to assist in monitoring
emissions. Routine maintenance at the Palanca FSO was also
progressed as planned. The shutdown and associated activities are
all part of the ongoing upgrade project aimed at ensuring integrity
and longevity of the Block 3/05 facilities, following the license
extension through to 2040.
Kwanza Onshore
Licenses
Afentra continues to focus on
strategically complementary opportunities in the Kwanza
Onshore Basin. As previously
announced, the PSC for KON19 has been
awarded and we await the license award for KON15 which is
still expected before the end of 2024. Whilst the full work
programme is still to be defined, the
basin-wide enhanced Full Tensor Gravity Gradiometry (eFTG)
survey, initiated in August 2024, has completed its first phase
with coverage recorded over KON19. A further phase covering KON15
will commence early in 2025. The
utilization of advanced, high-resolution eFTG technology will
enable a more efficient and detailed assessment of the subsurface
potential across this 25,000km² onshore basin, a region that has
seen minimal exploration activity over the past few
decades.
Financial Highlights
Afentra maintains a solid financial
position, with cash resources of $37.4 million and net debt of $4.6
million as of 31 October 2024. The Company's prudent approach to
managing its balance sheet is demonstrated by maintaining a low
debt profile, while upcoming crude sales will further bolster
liquidity. Afentra executed three liftings in the first three
quarters of the year, selling 1.68 million bbls of crude at an
average price of $84/bbl. A structured hedging strategy was
implemented to provide protection against price volatility. With
the final lifting scheduled for Q4 2024, which is 70% hedged with a
floor of $70/bbl, the company is well positioned to continue its
disciplined financial management and operational growth.
Key
Financials
- Cash resources as of 31 October 2024 of $37.4 million
- Debt drawdowns at 31 October 2024:
o Reserve Based Lending Facility: $42 million
o Working Capital Facility: zero
- Net debt ~ $4.6 million at 31 October 2024
Crude Oil
Sales
- Final crude cargo (~550,000 bbls) planned for Q4 2024,
completing liftings for this year totaling 2.23 million
bbls.
- Q4 cargo 70% hedged with a mixture of floors and
costless collars providing a floor of $70/bbl.
Paul McDade, Chief Executive Officer, Afentra plc
commented:
"We are pleased with the operational progress made during the
period, particularly the successful completion of the Block 3/05
maintenance shutdown which is part of our redevelopment plan to
futureproof the infrastructure and deliver production growth for
the duration of the license period. I would like to acknowledge the
quality performance that Sonangol, as the operator of Block 3/05,
demonstrated in ensuring the safe and efficient execution of the
shutdown.
Our well intervention program continues to yield positive
results, setting us up for further production improvements in the
months ahead. We are also excited about the ongoing developments in
the Kwanza Onshore Basin, where we see promising
potential.
From a financial perspective, we have made significant strides
this year, achieving a strong balance sheet with cash resources of
~$37 million and net debt of $4.6 million
following the completion of our transactions earlier this year.
This is a key milestone for the company, reflecting our prudent
financial management, and ensuring liquidity to consider
complementary value accretive opportunities. With our final crude
sale scheduled for Q4, we expect to move to a net cash position,
allowing us to continue building long-term value for our
shareholders."
For
further information contact:
Afentra plc +44 (0)20 7405 4133
Paul McDade, CEO
Anastasia Deulina, CFO
Burson Buchanan (Financial PR) +44 (0)20 7466
5000
Ben Romney
Barry Archer
George Pope
Peel Hunt LLP (Nominated Advisor and Joint Broker) +44 (0)20
7418 8900
Richard Crichton
David McKeown
Emily Bhasin
Tennyson Securities (Joint Broker) +44 (0)20 7186
9033
Peter Krens
About Afentra
Afentra plc (AIM:AET) is an upstream
oil and gas company focused on opportunities in Africa. The
Company's purpose is to support a responsible energy transition in
Africa by establishing itself as a credible partner for divesting
IOCs and Host Governments. Offshore Angola Afentra has a 30%
non-operated interest in the producing Block 3/05 and a 21.33%
non-operated interest in the adjacent development Block 3/05A in
the Lower Congo Basin and a 40% non-operating interest in the
exploration Block 23 in the Kwanza Basin. Onshore Angola Afentra has a 45% non-operated interest in the
prospective Block KON 19 located in the western part of the Onshore
Kwanza Basin. Afentra also has a 34% carried
interest in the Odewayne Block onshore southwestern
Somaliland.