Afentra has announced its unaudited annual results for the year ended 31 December 2023.

2023 SUMMARY

Overview

• During FY2023 and post period, successful completion of three acquisitions in Angola to acquire 30% non-operated interest in the producing Block 3/05 and a 21.33% non-operated interest in the adjacent development Block 3/05A:
  • Completion of acquisition of interests from Sonangol (14% in Block 3/05 and 40% in Block 23).
  • Completion of acquisition of interests from INA (4% in Block 3/05 and 5.33% in 3/05A).
  • SPA signed with Azule to acquire further equity in Block 3/05 and 3/05A.
  • Post year-end, completion of acquisition of interests from Azule (12% in Block 3/05 and 16% in 3/05A)
• Appointment of Thierry Tanoh as an Independent Non-Executive Director and Chairman of the Audit Committee.

Financial Highlights

• Cash resources at year end 2023 of $19.6 million (2022: $30.6 million), which includes restricted funds of $4.9 million (2022: $10.2 million).
• Reserve Based Lending Facility at year end of $31.7 million resulting in year end net debt of $12.3 million.
• First cargo of300,000 bbls ofcrude oil sold in August 2023, at a salesprice inclusive of the Brent premiumof$88/bbl,generating pre-tax sales of $26.4 million net to Afentra.
• Crude oil stock as at year end 2023 of approximately 300,000 bbls[1].
• Net asset level cashflow generation related to 30% equity in Block 3/05 in 2023 was $67.4 million at an average weighted sales price of $90/bbl.
• Mauritius Commercial Bank became a lender by entering both the RBL and working capital facilities, Trafigura retains an interest in the RBL facility and will continue as an offtake provider.

Operations

• Combined 2023 gross production on Block 3/05 and Block 3/05A was 20,180 bopd (2022: 18,700bopd).
• Light well intervention campaigns successfully executed, leading to December 2023 gross production exceeding 23,000 bopd.
• Water injection upgrades doubled injection rates, with December rates of ~42,000 bwipd.
• Gazela field (Block 3/05A) production was restored in March 2023 leading to gross production rate of around 1,300 bopd.
• Future investment options progressed to unlock the significant resource base including review of electric submersible pumps ('ESPs'), heavy workovers, infill drilling and development of Block 3/05A discoveries.
• Drone surveys performed to identify fugitive emissions and assist in quantifying flaring.
• Competent persons report ('CPR') with reserves replacement in the first half of 2023 in excess of 150%.

Post year-end Summary

• Selected as the preferred bidder for 45% non-operating equity in both KON15 and KON19 located in the Kwanza Basin onshore Angola.
• PSA for the onshore Block KON19 negotiated with Agência Nacional de Petróleo, Gás e Biocombustíveis ('ANPG') and now await the formal Government approval.
• Completion of the Azule acquisition resulting in Afentra holding non-operated interests of 30% in Block 3/05 and 21.33% in Block 3/05A.
• Government of Angola declared the Punja Development Area in Block 3/05A a marginal discovery with improved fiscal terms now applicable for the remainder of its term.
• Sold cargo of 450,000 bbls of crude oil in February 2024. The sales price inclusive of the Brent premium was $85/bbl, generating pre-tax sales of $38.2 million to Afentra.
• Net debt at Azule completion of around $46.2m with crude oil stock of around 840,000 bbls(1).
• Combined gross production for the first four months of 2024 ending 30 April for Blocks 3/05 and 3/05A has averaged ~23,000 bopd (Net: ~6,800, bopd).

(1) Crude oil stock entitlement

Commenting on the update, CEO Paul McDade said:
"Last year was another transformative period for the company as we completed our first two transactions in Angola.  The subsequent completion of the Azule transaction represented another key milestone for Afentra as we, alongside our partners, turn our attention to realising the significant organic growth opportunities that we see in the quality portfolio that we have assembled.  With these initial transactions, we have successfully proved our suitability as a credible counterparty for divesting IOCs/NOCs, our ability to deliver high value accretive deals, and to fund these types of deals through smart deal making.  The market dynamics in Africa continue to support our inorganic growth strategy and we are actively screening compelling opportunities that meet with our commercial criteria.  We look forward to updating the market through what will be an active year ahead for Afentra."

KeyFacts Energy: Afentra Angola country profile