WTI (Dec) $60.74 +83c, Brent (Jan) $64.89 +69c, Diff -$4.15 +14c
USNG (Dec) $4.37 +1c, UKNG (Dec) 82.35p -0.93p, TTF (Dec) €31.025 -€0.675

Oil price

The oil price has shaken out today, last night the API inventory stats showed a build in crude of 4.4m barrels and the EIA stats later will determine how accurate they were. Elsewhere MbS is feted by the Donald and markets are abuzz ahead of the NVIDIA results tonight….

Afentra

Afentra has provided an operational and financial trading update for the period 1 January to 31 October 2025. 

Key Highlights

• Block 3/24 Award: License awarded to Afentra as Operator with 40% interest
• Etu Energias Acquisition: Approval process progressing with completion expected in Q1 2026
• Kwanza Onshore Expansion: KON4 license contract initialled; award expected in Q1 2026
• Net Average Production: production continues to be stable, 6,368 bopd for period to 31st October 2025
• Crude Oil Sales & Revenue: 1.63 mmbbls sold at $70.14/bbl average price, generating $114.3 million revenue
• Borrowings: drawn RBL of $31.5 million, Net debt of $7.5 million
• Board Appointment: Andrew Osborne appointed as Non-Executive Director and Chair of Audit Committee

Operational Highlights

• Gross average production for the period ended 31 October 2025 was 21,428 bopd (Net: Block 3/05 6,222 bopd; Block 3/05A 146 bopd).
• Multi-year redevelopment plan remains on track targeting increased recovery and production growth. Key workstreams progressed in the period ended 31 October 2025 include:
  • Water injection ramp-up continued, averaging 35,000 bwpd for the period, average injection rates of 55,000 bwpd achieved in October. The programme remains on track to achieve a consistent 85,000 bwpd by year-end.
  • 22 light well interventions delivered to date sustaining production performance, programme targeting a total of around 35 wells to be completed by year-end.
  • Infrastructure upgrades continue across power systems, cranes, subsea lines and risers to enhance safety, reliability, uptime and protect future value.
  • Platform surveys and access preparation to support rig mobilisation and drilling in 2026.
• Asset uptime remained stable throughout the period, Opex continues to track $23/bbl.
• Additional investment associated with the preparation for the 2026 drilling campaign and accelerated revamping programme will increase the 2025 capital programme from $180 million gross to around $220 million gross (Net: $66 million).
  • Drilling related investment included long lead items, platform surveys, mobilisation of contractor drilling teams and heavy work over studies.
  • Incremental revamping activities included commencement on platforms earlier than planned, refurbishment of the gas compressor and power systems and materials for 2026 revamping. 
• Block 3/05 drilling and workover activities being finalised and agreed for execution of up to two new wells and three workovers in 2026.
• Block 3/24 offshore license award completed following ministerial approval with Afentra as Operator at 40% working interest. Work is already underway reviewing the potential for redevelopment of the existing discoveries on this block.
• Sale & Purchase Agreement signed with Etu Energias in June for an additional 5% net interest in Block 3/05 and 6.67% net interest in Block 3/05A. Approval process is ongoing and completion is now expected in Q1 2026.
• Onshore Kwanza basin:
  • Block KON15 license formally awarded in February.
  • KON4 Risk Service Contract initialled in June, confirming Afentra as Operator at 37.5%, completion of the award is now expected in Q1 2026.
  • eFTG data acquisition programme underway across Blocks KON4, KON15 and KON19, with completion targeted for Q1 2026 to advance subsurface evaluation and define future exploration and development targets.
  • On the KON4 license, the JV has completed field reconnaissance and progressed integration of historic data, supporting subsurface modelling ahead of well re-entry.

 Financial Highlights up to 31st October 2025

• Revenue of $114.3 million1
• Cash resources of $23.8 million (including $7.1 million of restricted funds)
• Debt drawdowns
  • Reserve Based Lend Facility: $31.5 million
  • Working Capital Facility: zero
• Net debt of $7.5 million
• Crude Oil Sales
  • Four liftings during the period totalling 1.63 million bbls; average price of $70.14/bbl
  • Next lifting of ~500,000 bbls expected in January 2026
• Currently ~7% of 2026 sales hedged; programme remains under review as current pricing does not offer sufficient value for the protection provided.
• Employee Benefit Trust commenced a share purchase programme in July to acquire ~6.5 million shares, covering FSP and LTIP awards through H2 2025 and 2026, avoiding dilution and capitalising on current share price levels. The company purchased 3,978,677 shares at a volume-weighted average price of ~48 pence per share over the period.

 Post Period-End

• Appointment of Andrew Osborne as Independent Non-Executive Director and Chair of the Audit Committee announced on 10 November, further strengthening Afentra's board and governance framework

Near-Term Catalysts

• Completion of Etu Energias acquisition
• Award of KON4 Risk Service Contract
• Completion of the eFTG acquisition and interpretation to identify the potential of the onshore licenses
• Next crude lifting (~0.5 mmbbls) expected in January 2026
• Block 3/05 drilling and workover programme with execution anticipated to start in 2026
• Annual reserves and resources review expected to continue to demonstrate upside potential

Paul McDade, Chief Executive Officer, Afentra plc commented:
“The completion of the Block 3/24 license award marks an important milestone for Afentra, adding material reserves and production potential and establishing our first operated position offshore Angola. With the Etu Energias acquisition expected to complete in early 2026, we will further enhance our reserves base, production profile and presence in Angola. As Operator of Block 3/24, Afentra will apply its technical and operational expertise to unlock the redevelopment potential of the block, complementing the ongoing work on Blocks 3/05 and 3/05A. Together, these assets provide a clear pathway for material production growth and long-term value creation.

Operationally, we continue to make good progress on the asset workstreams that support our long-term growth strategy, while maintaining a disciplined approach to cost management and balance sheet strength. Additionally, we are pleased to be progressing preparations for the commencement of drilling activities in 2026 as we seek to achieve an organic step-change in production and cash flow generation.

Afentra enters 2026 well positioned to deliver on its strategy and to build on the strong platform established over the past years.“

Afentra has yet again delivered, the packed report today has many areas of excitement for shareholders and the company has this year sewn the seeds for yet more significant growth both onshore and offshore Angola. 

I guess that in a cracking list of achievements the acquisition of the Block 3/24 licence is right up there, an ‘important milestone’ indeed which adds ‘material reserves and production potential’ but is also key in that as its first operatorship offshore Angola means that the company can apply its technical and operational expertise which is worth much more. 

With the Etu Energias deal soon to be completed and work ongoing on Blocks 3/05 and 3/05A giving continued improving performance, to be supplemented by water injection and interventions the outlook is very good indeed. The company are preparing for a big drilling programme next year as they ‘seek to achieve an organic step-change in production and cash flow generation’ and have already upped spend on long lead items increasing capex to $220m from $180m. 

Onshore they also have the KON4 Block due for completion soon and of course the KON15 and 19 making a handy onshore portfolio which ideally complementing the offshore assets. I remain very impressed with Afentra, the management is amongst the best in the sector and gives investors plenty of upside potential. 

Afentra has been one of the best long term performers in the Bucket List, the shares are up 13% over the last 6 months but flat over a year, and currently is in the middle of the 35-55p range, with my TP unchanged at 100p I remain convinced that there is much to look forward to next year.

Eco (Atlantic) Oil & Gas

Eco has announced its unaudited results for the three and six month periods ended 30 September 2025.

Financial

• The Company had cash and cash equivalents of US$2.1 million and no debt as at 30 September 2025.
• The Company had total assets of US$18.9 million, total liabilities of US$1.4 million and total equity of US$17.6 million as at 30 September 2025.
• The Company is due to receive additional $11.5m from Block 3B/4B JV partners upon milestones in accordance with previously signed farm out agreements.

South Africa

Block 1 CBK

• On 5 June 2024, Eco announced the acquisition of a 75% interest in Block 1 Offshore South Africa in the Orange Basin and received the Governmental Title Award and the Exploration Right and Operatorship, the final receipt of which was announced on 4 June 2025.
• Eco has acquired existing seismic data and an interpretation process in parallel to an active farm-out process is underway.
• In honour of the late Colin Brent Kinley, Eco Atlantic's Co-Founder and former Chief Operating Officer, who passed away on November 5, 2025, Azinam South Africa Limited ("Azinam SA"), the Operator of Exploration Right 12/3/362, in agreement with its Joint Venture Partner has renamed Block 1 Offshore South Africa to "Block 1 CBK" effective 17 November 2025.   
• On 19 November 2025, the Petroleum Agency of South Africa granted the Assignment and Transfer of a 25% participating interest from the local JV partner Tosaco Energy (Pty) Ltd to OrangeBasin Energies (Pty) ltd., a B-BBEE-rated South African entity. 

Block 3B/4B

Throughout 2025, Eco and its JV partners have continued to advance the license work programme and preparations for the drilling campaign in anticipation of drilling permit approval. The operator has stated that the current plan is to drill the first exploration well on Block 3B/4B as soon as Environmental Authorisation is confirmed and has identified Nayla, a prospect that lies in the north of the license area as the potential first drilling target.   
The Company is due to receive additional $11.5m from Block 3B/4B JV partners upon milestones in accordance with previously signed farm out agreements.

Namibia

• As part of Eco's efforts to optimise its portfolio in Namibia, the Company received a one year license extension to its initial exploration phase, across all four of its PELs (Petroleum Exploration Licence) in Namibia and, pending government approval, farmed out its entire Working Interest, in PEL 98 (Block 2213 "Sharon Block") to an arms-length wholly Namibian-owned company, Lamda Energy (Pty) Ltd ("Lamda Energy"). 
• The Company continues to receive considerable interest in its licenses in Namibia and is currently assessing options to further progress its exploration work programmes amid a potential farm-out. 

Guyana

• The Company remains engaged in an active farmout process for the Orinduik Block.
• In light of ExxonMobil's Final Investment Decision (FID) for the development of the Hammerhead project in the Stabroek block, Eco is evaluating the Jethro-1 and Joe-1 heavy oil discoveries offshore Guyana to determine the appropriate appraisal approach.

Post-period end

• On 7 November, the Company announced the sudden passing of Mr. Colin Kinley, a board member and Chief Operating Officer of Eco Atlantic. Mr. Kinley had a distinguished career spanning more than 45 years in the mining and oil and gas frontier exploration industries. In addition to his co-founding role with Eco, and the wealth of knowledge and experience he has brought to the Company over the years, he has served as a valued director and senior executive of numerous public companies.
• Eco published an interview with its President and Chief Executive Officer, Gil Holzman discussing Eco's progress over 2025, its focus on advancing strategic acreage across Guyana, Namibia, and South Africa, and the near-term catalysts that the Company believes will deliver tangible results and value for shareholders.
• The interview can be viewed here.

Gil Holzman, President and Chief Executive Officer of Eco Atlantic, commented: 
“During the period Eco has continued to advance our strategy of building value through focused portfolio management in key hydrocarbon frontiers. In South Africa, we have now completed the acquisition of a 75% interest and operatorship in Block 1 in the Orange Basin. This, alongside our existing interest in the highly prospective Block 3B/4B, further consolidates our presence in a world-class hydrocarbon province.

“In Namibia, our focus has been on portfolio optimisation, aimed at maximising the value of our assets and unlocking their potential for the benefit of our stakeholders. We secured one-year extensions across all four of our PELs and agreed a farm-out of PEL 98 to Lamda Energy, reinforcing the potential of our portfolio and deepening our support for local ownership and operational leadership in Namibia.

“We remain fully engaged in the farm-out process for the Orinduik Block in Guyana and continue to evaluate the heavy oil potential of the Jethro-1 and Joe-1 discoveries, both of which present exciting development opportunities.

“As our stakeholders will be aware, it was with great sadness that we recently announced the passing of Eco’s co-founder and Chief Operating Officer, Colin Kinley. A bastion of the oil and gas sector and a close friend to all of us at Eco, Colin will be missed dearly. With Alice Carroll and myself assuming his responsibilities, we will endeavour to continue his legacy of operational excellence and diligence.

“As we move through the remainder of 2025 and into 2026, Eco is well-positioned with an international footprint across three of the best hydrocarbon jurisdictions in the world, and a clear path toward multiple near-term catalysts that we believe will create long-term value for our shareholders.”

Eco is a serious favourite for its exceptional portfolio of assets it holds having carefully assembled it in recent years. The now completed Block 3A transaction in the South African Orange Basin is exciting as is the exciting 3B/4B ‘highly prospective’ block which the operator says will drill when the Environmental Approval is confirmed, a permit received and they have a prospect identified. Eco are due some $11.5m from partners upon milestones completed.

Elsewhere in Namibia all is quiet at the moment following the sale of PEL 98 and extensions on 4 PEL’s and in Guyana farm-out of Orinduik still goes on. Also the company are evaluating the heavy oil at Jethro and Joe which are ‘exciting development opportunities’…

The Eco story has recently been one of patience needed for shareholders and that has not changed, it looks like 2026 may see some activity in drilling hopefully and also for farm-out prospects. The story remains intact as does the upside potential, I hope that we see things happening in the new year to recompense those of us who have remained, well, patient…

Ithaca Energy

I noticed this announcement from Ithaca this morning and saw that they have farmed in to Shell’s Tobermory discovery West of Shetland.

Ithaca has announced it has signed a farm-in agreement with Shell UK for a 50% working interest in licences P2629 and P2630, located in the West of Shetland basin, containing the Tobermory discovery.

The strategic farm-in to the Tobermory gas discovery builds upon the Group’s West of Shetland investment strategy and positions Ithaca Energy as a significant player in a key gas hub in the area, in support of UK Energy Security.

Following completion of the farm-in, Shell UK will continue to hold a 50% stake in the Tobermory discovery and act as licence operator. The announcement of the Tobermory farm-in, together with the Group’s existing 50/50 joint venture partnership with Shell in the Group’s Tornado discovery, further strengthens Ithaca Energy’s position as a strategic partner in the area.  

Yaniv Friedman, Executive Chairman, commented:
“We are delighted to announce the farm-in to the Tobermory discovery and to continue our strategic partnership with Shell UK in the area. The West of Shetland represents a key basin for the Group’s long-term growth, with the ongoing development of the Rosebank field and the continued progression of the Cambo and Tornado discoveries towards final investment decision. Our investment in the West of Shetland basin is critical not only to the UK’s Energy Security strategy, but also in supporting thousands of highly skilled jobs and our world-class supply chain and providing significant gross value add to the UK economy.”

When Serica announced the acquisition of Prax Upstream and related assets they highlighted the potential of the basin, and this is further proof of the exciting opportunities that may be available West of Shetland.

Given that Serica are also taking ownership of the Shetland Gas Plant, the natural place through which gas from Tobermory would flow, it will be interesting to watch how things progress in what could be a significant growth area for Serica.

Original article   l   KeyFacts Energy Industry Directory: Malcy's Blog