Afentra Engages in Discussions to Increase Stake in Angolan…

Afentra seeks to increase its stake in two offshore Angolan blocks, engaging in discussions with a joint venture partner to acquire interests currently held by Etu Energias. The company remains committed to enhancing production and resource levels through collaborative efforts with Sonangol, the operator of these blocks. Significant reserves are reported for Block 3/05, reinforcing Afentra’s strategic interest in this region.

Afentra, a UK-based upstream oil and gas company listed on the AIM, has acknowledged media speculation regarding its intention to increase its stake in two offshore blocks in Angola. The company confirmed its participation in discussions with a joint venture (JV) partner to acquire stakes in blocks 3/05, which holds a 10% interest, and 3/05A, which contains a 13.5% interest, currently owned by Etu Energias.

However, Afentra noted that there is no certainty that this transaction will proceed. If the acquisition proceeds, the company plans to utilize its existing cash resources, subject to customary closing conditions such as regulatory and governmental approvals. Afentra is focused on acquiring production and development assets across Africa, emphasizing prudent financial management.

Currently, Afentra is engaged with Sonangol, the operator of blocks 3/05 and 3/05A, to advance a redevelopment plan aimed at increasing both production and reserves. The collaborative efforts with Sonangol have been praised as productive, with a commitment to enhance the value derived from these assets.

As of December 2024, the total net 2P working interest reserves for Block 3/05 are reported to stand at 34.2 million barrels of oil (mmbo), reflecting a reserve replacement ratio of 140% over 18 months. This has led to an increase in net working interest contingent resources, which now total 13.8 mmbo, grossing at 46 mmbo. Block 3/05A is estimated to possess net 2C resources of 7.1 mmbo, with gross resources of 33 mmbo.

Block 3/05 features eight mature producing fields initially discovered by Elf Petroleum, part of TotalEnergies, during the early 1980s. Currently, hydrocarbons are produced from around 40 production wells, supplemented by nine active water injectors. Oil from this block is exported via the Floating Storage and Offloading vessel (FSO) Palanca. The National Agency for Oil, Gas, and Biofuels (ANPG) of Angola indicates there are 30 investment opportunities in the oil sector, which include 11 blocks currently available, six onshore blocks, four in marginal fields with existing discoveries, and nine blocks slated for bidding in 2025.

In summary, Afentra has entered discussions to potentially increase its stake in two offshore blocks in Angola, emphasizing the uncertain nature of the transaction. The company continues collaborative redevelopment efforts to enhance production and resources in these blocks, which hold significant oil reserves. With ongoing initiatives and notable investment opportunities in Angola’s oil sector, Afentra is strategically positioning itself for growth in the region.

Original Source: www.offshore-energy.biz