Afentra, the upstream oil and gas company focused on acquiring mature production and development assets in Africa, has provided an operational and financial update for 2023
Afentra currently holds non-operated 18% and 5.33% working interests in Blocks 3/05 and 3/05A, respectively, offshore Angola with working interests to increase to 30% and 21.33%, respectively, following completion of the impending Azule transaction.
Operational highlights
2023 average gross production for Block 3/05 and 3/05A was 20,180 bopd
Strong operational performance and successful well interventions have positively impacted performance with gross production of over 22,000 bopd in December 2023
Drone survey completed as part of a holistic gas management program to identify, measure and reduce GHG emissions
30 successful well interventions were completed in 2023, a similar number of interventions are planned for 2024
Water injection performance improved throughout the year with ~42,000 bwipd(1) being achieved in December, further work planned for 2024 is expected to significantly increase water injection rates
Production was restored at the Gazela field on Block 3/05A in March and averaged 970 bopd, gross, through 2023
Progressed the review of future investment options to unlock the significant resource base including installation of ESPs, heavy workovers, infill drilling and development of Block 3/05A discoveries.
Financial highlights
Cash resources at year end 2023 of US$19.6mn, which includes restricted funds of US$4.9mn
Debt drawdown on Reserve Based Lending Facility of US$33.6mn resulting in year-end net debt of US$14.0mn
Block 3/05 license extension and fiscal terms improvements approved by government enhancing economics and supporting future investment programmes
Company sold its first cargo in August 2023, 300,000 bbls of crude oil at sales price of US$88/bbl, generating pre-tax sales of US$26.4mn
Crude oil stock as at year end 2023 of approximately 300,000 bbls, which with subsequent production supports crude oil lifting of ~450,000 bbls planned for late February
Afentra has proactively hedged 70% of its February cargo, this provides floor of US$70/bbl and full exposure to the crude oil price upside
Asset level cashflow generation related to 30% equity in 2023 was US$67.4mn at an average weighted sales price of US$90/bbl.
Azule acquisition
The Government approval process is ongoing with the acquisition expected to complete later in Q1 2024
The transaction has an effective date of 31 October 2022 with accrued net revenue being reflected in final payment on completion
Paul McDade, CEO, Afentra plc commented, "2023 was a transformational year for Afentra with the completion of acquisitions from both INA and Sonangol of non-operating interests in Blocks 3/05, 3/05A and Block 23. Afentra identified these as assets with very significant upside potential and targeted acquiring a material ownership in the production licenses. In 2023 we made substantial progress towards that strategic goal and the asset partnership has been able to demonstrate the clear potential upside in the assets as the work programme designed to optimise production is accelerated. The strong operational performance and well intervention programme in 2023 allowed us to increase gross production to 22,000 bopd by year end. In 2024 the operational activities and planning for future work programmes will build on this early success and lay the foundations for continued production growth for many years ahead. The license extension to 2040, together with the revised fiscal terms, will enable the unlocking of further significant resources whilst reducing the emissions profile.
"The Company has achieved these successes whilst maintaining a robust financial position, at year end we had net debt of US$14mn with an oil stock of ~300,000 bbls, despite executing these transformative transactions without the need to issue new equity. Our first successful sale of crude in August 2023 will be followed by a further sale of crude, approximately 450,000 bbls, planned for late February 2024. This sale will further strengthen our financial position ahead of the completion of the Azule transaction.
"We look forward to the completion of the Azule acquisition in the coming months, and to another strong year of operational delivery in Blocks 3/05 and 3/05A as these assets underpin our more ambitious growth strategy in Angola and other target markets in Africa."
