10 July 2024
AFENTRA PLC
Operations and Financial
Update
Afentra plc ('Afentra' or the
'Company') (AIM: AET), the upstream oil and gas company focused on
acquiring production and development assets in Africa, provides the
following update for the 6 months ending 30 June 2024:
Angolan Acquisitions
The Company completed the Azule
Acquisition in May 2024 for a net consideration of $28.4 million
and inherited a crude oil stock of 480,000 barrels.
Onshore License Award
Following the announcement by ANPG,
which confirmed Afentra as preferred bidder for a 45% non-operated
interest in both KON 15 and KON 19 onshore Angola, the Company has
made good progress. The KON 19 contract was
formally approved and awarded by Presidential Decree on 05 July.
Contract discussions on KON 15 continue to make
progress.
Financial Summary (unaudited)
Crude oil realisations and
hedging
- The Company sold in
aggregate 900,000 bbls of crude in the first 6 months across two
lifting in February and June.
- The average sales price
realised inclusive of the Brent premium differential for 1H 2024
sales was $84.3/bbl.
- Pre-tax revenue of $75.9
million for 1H 2024.
- Crude oil entitlement
stock at 30 June 2024, post June lifting, ~570,000 bbls.
- The Company expects to
sell its next cargo of crude oil (~790,000 bbls) in August 2024 and
has placed hedges to provide a $80/bbl floor for 70% of the August
cargo.
Selected Balance Sheet
Information as at 30 June 2024
- Cash resources of $13.8
million.
- Debt drawdowns: Reserve
Based Lending Facility $47.3 million, Working Capital Facility
$13.7 million.
- Net debt of $46.4
million.
- Net debt excludes the
June crude oil sale of $37.6m, which is classified as a receivable
as at 30 June 2024 (due to timing of cash receipt (July)
post-period).
Key indicators for H1 2024
|
|
FY 2023
|
Q1 2024
|
Q2 2024
|
|
Block 3/05 & 3/05A Gross
production (bopd)
|
20,180
|
22,735
|
22,637
|
|
Net Working Interest (WI) Production
(bopd)
|
3,5091
|
3,9261
|
6,677
|
|
Sales Volume (bbls)
|
300,000
|
450,000
|
450,000
|
|
Average sale price ($/bbl)
|
88.0
|
85.0
|
83.6
|
|
Revenue ($ million)
|
26.4
|
38.3
|
37.6
|
|
|
31 Dec 2023
|
31 Mar 2024
|
30 Jun 2024
|
|
Cash and Cash equivalents ($
million)
|
19.6
|
5.8
|
13.82
|
|
Debt ($ million)
|
(31.7)
|
(41.3)
|
(60.2)
|
|
Net Debt ($ million)
|
(12.3)
|
(35.6)
|
(46.4)2
|
|
Crude Oil Entitlement Stock
(bbls)
|
301,416
|
121,777
|
568,917
|
1 Represents 18% WI for B/305 and 5.33% WI for
B3/05A.
2 Cash received for the June lifting of $37.6m whilst recognised
in Pre-tax revenue, is not recognised in Q2 cash resources or net
debt due to timing of cash receipt (July) post-period.
Operational Summary
- Gross average combined
production for the period to the end of June 2024 for both Block
3/05 and 3/05A was 22,686 bopd (Net: B3/05 6,411
bopd; B3/05A 281 bopd).
- Field Operations progressed in 1H 2024:
o 15
LWI's were completed delivering an overall 2,500 bopd increase to
field potential, a further campaign of up to 20 LWI's commenced at
the end of June.
o Water injection remains a key priority with a peak injection
rates of around 60,000 bwipd achieved in April.
o Upgrade works on the power systems ongoing to maintain water
injection rates on a consistent basis.
o Planning for future workovers, ESP installations and selection
of drilling candidate continues.
o Preparations continue for the extended
shutdown planed for September 2024.
Commenting on the update, CEO Paul
McDade said:
"The mid-year revenue demonstrates the strong cash flow
profile of the assets that we have acquired in Angola. We are
very pleased with the latest lifting as it strengthens our
financial position and provides a platform for further
growth. Our liquidity position will be further strengthened
by the next scheduled lifting which we expect to occur in August,
and we have taken measures to mitigate downside risk through our
hedging policy. We are pleased to report on steady
operational progress at 3/05 as the field responds positively to
the optimisation activities and we hope to maintain this momentum
through the second half of the year and beyond. Finally we are
delighted to announce the award of the Kwanza onshore license KON
19, a further demonstration of our successful efforts to expand our
business in Angola."
For
further information contact:
Afentra plc +44 (0)20 7405 4133
Paul McDade, CEO
Anastasia Deulina, CFO
Buchanan (Financial PR) +44 (0)20 7466 5000
Ben Romney
Barry Archer
George Pope
Peel Hunt LLP (Nominated Advisor and Joint Broker) +44 (0)20
7418 8900
Richard Crichton
David McKeown
Georgia Langoulant
Tennyson Securities (Joint Broker) +44 (0)20 7186
9033
Peter Krens
About Afentra
Afentra plc (AIM:AET) is an upstream
oil and gas company focused on opportunities in Africa. The
Company's purpose is to support a responsible energy transition in
Africa by establishing itself as a credible partner for divesting
IOCs and Host Governments. Offshore Angola Afentra has a 30%
non-operated interest in the producing Block 3/05 and a 21.33%
non-operated interest in the adjacent development Block 3/05A in
the Lower Congo Basin and a 40% non-operating interest in the
exploration Block 23 in the Kwanza Basin. Afentra has a 34% carried
interest in the Odewayne Block onshore southwestern
Somaliland.
Inside Information
This announcement contains inside
information for the purposes of article 7 of Regulation 2014/596/EU
(which forms part of domestic UK law pursuant to the European Union
(Withdrawal) Act 2018) and as subsequently amended by the Financial
Services Act 2021 ('UK MAR'). Upon publication of this
announcement, this inside information (as defined in UK MAR) is now
considered to be in the public domain. For the purposes of UK MAR,
the person responsible for arranging for the release of this
announcement on behalf of Afentra is Paul McDade, Chief Executive
Officer.