Afentra acquires additional interests offshore Angola

Afentra (Angola) Ltd. increased its equity in Block 3/05 and Block 30/05A, offshore Angola, to 30% and 21.33%, respectively, through a deal with Azule Energy Angola Production BV.

The acquisition is for an additional 12% interest in Block 3/05 and 16% interest in Block 3/05A. Initial consideration for the purchase is $48.5 million with contingent consideration of up to $21 million over 3 years, subject to certain oil price and Block 3/05 production hurdles and an annual cap of $7 million. There is a contingent consideration of up to $15 million linked to successful future development of certain Block 3/05A discoveries and associated oil price and production hurdles.

Afentra worked with Sonangol to ensure a balance of equity interests across Block 3/05 post the Azule transaction. The result is an agreement to adjust the equity being acquired from Sonangol by Afentra to 14% from 20% with a pro-rata adjustment to the consideration. All other terms remain unchanged.

Net 2P reserves of Blocks 3/05 and 3/05A are about 32 million bbl and net 2C resources of about 20 million bbl. Production is about 6,000 b/d net. Upside potential for the blocks include improved recovery from over 3 billion bbl OIIP in Block 3/05 and development of multiple fully-appraised discoveries in Block 3/05A, the company said. Decommissioning costs to date have been pre-funded by previous and existing JV partners.

Production from Block 3/05 averaged about 19,100 b/d in June 2023 and about 18,000 b/d for first-half 2023. Water injection has averaged about 38,000 b/d for first-half 2023, an increase from first-half 2022.

The continued light well intervention program will focus on acid wash and stimulation across Oombo, Pacassa, Palanca, and Bufalo fields. In Block 3/05A, at Gazela field, long term testing continues at about 1,200 b/d. Future activities on Block 3/05 consist of additional well perforations and installation of artificial lift on a sample of production wells.

After completing the Azule and Sonangol acquisitions, JV partners in Block 3/05 will include Sonangol (operator, 36%), Afentra (30%), M&P (20%), etu energieas (10%), and NIS Naftgas (4%). JV partners in Block 3/055 will include Sonangol (operator, 33.33%), Afentra (21.33%), M&P (26.67%), etu energieas (13.33%), and NIS Naftgas (5.33%).