Afentra Now Holds a Decent Minority Stake in Angola’s ‘Block 3/05 Series’ - Africa’s premier report on the oil, gas and energy landscape.

Afentra Now Holds a Decent Minority Stake in Angola’s ‘Block 3/05 Series’

Angolan authorities have approved the purchase, by Afentra Plc, of a 12% non-operating interest in the country’s Block 3/05 and a 16% non-operating interest in the country’s offshore Block 3/05A.

The approval is pursuant to the agreement between Azule Energy Angola Production B.V. and Afentra’s wholly-owned subsidiary, Afentra (Angola) Ltd.

The sale and purchase were announced on the July 19 2023, so the process of ministerial consent has taken 10 months.

“The Azule acquisition increases Afentra’s interest in Block 3/05 to 30% and in Block 3/05A to 21.33%, with payable cash consideration at completion of $28.4Million”, Afentra reports.

The initial cash consideration of $48.5Million was reduced by impact of cash flow adjustments as of the transaction effective date of 1 October 2022.

Afentra announced that the combined gross production for the first four months of 2024 ending 30 April 2024 for Blocks 3/05 and 3/05A has averaged ~23,000BOPD (Net: ~6,800, BOPD).

The company has inherited, from the transaction, crude oil stock amounting to 480,000 barrels.

Afentra also disclosed its financial position on completion of the acquisition o Net Debt is expected to be $46.2Million with Crude oil stock of around 840,000barrels.

The Light Well Intervention programme, commenced by the joint venture during 2023, continues into 2024 with a further 45 interventions planned over two campaigns. Lifting Update The Company expects to sell its next cargo of crude oil (~450,000 barrels in June 2024.

“The completion of the Azule Acquisition is the final step in the complex process of acquiring a material equity position in both Block 3/05 (30%) and Block 3/05A (21.33%) through three separate transactions”, Afentra explains in a statement.

“As with the previous two transactions the acquisition structure ensures that Afentra benefits from the net cash flow from the assets while working through the completion process, significantly reducing the cash payment at completion”.

 

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