Afentra Lands Compelling New Opportunity in Angola

Afentra plc conferred a contract for Block KON4 in Angola, securing a 35% operated interest. The area includes historically significant oil and gas fields, which management believes can be revitalized using modern techniques. Shares rose roughly 3%, indicating investor confidence in the company’s future prospects.

Afentra plc is making headlines with its latest development in Angola, entering into a contract for Block KON4 located in the Kwanza basin. This agreement, known as a Risk Service Contract, grants Afentra a significant 35% operated interest in a substantial area measuring 1,387 square kilometers. This block is notable, having previously produced around 90 million barrels of oil from eleven historical oil fields and two gas fields.

The Quenguela Norte field is a highlight, being Angola’s largest-ever onshore discovery, holding over 200 million barrels with a peak production record of 12,000 barrels of oil per day. Afentra management sees potential for immediate returns by reactivating legacy fields using state-of-the-art techniques while taking advantage of cost-effective near-field exploration.

In a statement released on Monday, Chief Executive Paul McDade conveyed optimism about this new undertaking. “This is a significant step for us. While we are at the beginning of the formal approval process, we are collaborating closely with our partners in the contractor group to facilitate a smooth review of the existing oil fields in this block and explore any early development opportunities,” he remarked.

He further emphasized that the KON4 license addition to their portfolio poses a compelling chance to engage with local Angolan companies. The goal is to rejuvenate historical oil fields through modern methods and thoroughly evaluate the exploration potential of this basin, which has seen no exploration efforts for over 40 years.

Following the announcement, Afentra shares saw a noticeable uptick of approximately 3%, trading at around 52.89 pence per share, which brings the company’s market valuation to nearly £120 million. Investors are clearly showing interest in the company’s strategic moves in the Angolan oil sector.

Afentra plc has successfully secured a contract for Block KON4 in Angola’s Kwanza basin, giving it a substantial operated interest and opening pathways for reactivating long-dormant oil fields. The company’s collaboration with local firms and the potential to exploit the area’s historical oil reserves signal promising growth opportunities. Following this news, Afentra’s stock has seen upward movement, reflecting positive investor sentiment toward its plans in Angola.

Original Source: www.proactiveinvestors.co.uk