22nd January
2025
AFENTRA PLC
Operational and Financial
Update
Afentra plc ('Afentra' or the
'Company') (AIM: AET), an upstream oil and gas company focused on
acquiring production and development assets in Africa, is pleased
to provide an operational and financial trading update for the year
ended 31 December 2024.
Key
Highlights
- 2024 Net Average Production: 6,229
bopd
- Strong Asset Performance: redevelopment
activity boosted reliability, production and water
injection
- Oil Sales: 2.27
million barrels sold at $82/bbl average
price, generating $186.7 million revenue
- Asset Level Net Cash Flow: $87.2
million generated post capex,
opex and fiscal take
- Year-End Net Cash Position: $12.8
million
- Kwanza Onshore: KON19 license awarded;
KON15 award expected early 2025
Operational & Corporate Overview
Production and Field
Operations
- Gross average production
for 2024 was 21,111 bopd
(Net: Block 3/05 5,972 bopd; Block
3/05A 257 bopd).
- A 21-day maintenance
shutdown in October 2024 delivered critical upgrades to the power
supply, subsea infrastructure, and gas metering systems, ensuring
improved operational reliability and extended field longevity. A
further shutdown is planned for 2025 to further progress the asset
redevelopment plans.
- Strong operational
performance post-shutdown positively impacted production and water
injection rates:
o Gross average oil production from Block 3/05 and 3/05A
reached an average of 24,381 bopd (Net: 7,203 bopd) in December
2024, with the asset remaining on track to deliver the long-term
production outlook previously communicated.
o Water injection system upgrades boosted capacity, achieving
rates exceeding 80,000 barrels of water per day
(bwpd). A further water injection pump is
scheduled to come online in 2025, with injection
rates expected to increase to in
excess of 100,000 bwpd.
- Over 40 light well interventions
('LWIs') were
completed in 2024, successfully contributing over 2,000 bopd of
incremental production. A similar number of LWIs are planned for
2025.
- Opex for Blocks 3/05 and 3/05A
in 2024 averaged approximately
$23/bbl and is expected to be
similar in 2025.
- Substantial progress was made in our gas management plan in
2024 with new gas meters successfully installed to allow accurate
measurement starting in 2025 and to enable the JV partnership to
develop a fieldwide gas export plan.
- Around $150 million gross (Net: $39 million)1,
including life extension costs, was invested in 2024 in the asset
redevelopment plan. Gross investment to increase to around $180
million (Net: $54 million)2 in 2025 to continue to
underpin our long-term production outlook.
- End of year Competent Person's Report is ongoing and is
anticipated to demonstrate strong reserve replacement. An update to
the market will be provided when the report is finalised, expected
Q1 2025.
Kwanza Onshore
Licenses
- The Company continues to advance its exploration portfolio in
the Kwanza Onshore Basin. The license for KON19 was awarded in 2024
and the KON15 license is expected to be formally approved in early
2025. We continue to evaluate additional
opportunities in the Kwanza Onshore area. As part of our 2025 work
programme for both blocks, the Full Tensor Gravity Gradient (eFTG)
survey initiated in 2024 will be completed, enabling a geological
overview of the full license areas.
Financial Overview
The company's financial position has
undergone a significant transformation over the past 12 months,
demonstrating the value generated through strategic acquisitions,
stable asset performance, and effective management. Afentra closed
2024 with $54.8 million in
cash ($19.6 million at 31 December 2023) achieving an end of year
net cash position of $12.8 million. Strong
crude oil sales totaling 2.27 million barrels at an average
realised price of $82/bbl drove asset level cash flow generation of
$87.2 million related to Afentra's equity in 2024. With this robust
financial foundation, Afentra enters 2025 well positioned to deliver further growth and strategic M&A.
The Company intends to release its financial and operating results
for the full year 2024 in April 2025.
Key Financials at 31 December
2024
- Revenue of $186.7 million
- Cash resources of $54.8 million (includes $7.9 million of restricted funds)
- Debt drawdowns:
o Reserve Based Lending Facility: $42.0
million
o Working Capital Facility: zero
- Net cash of $12.8 million
Crude Oil Sales and
Hedging
- Total crude oil sales for 2024 totaled 2.27 million bbls, with
four liftings completed during the year.
- At year-end 2024, Afentra held approximately 32,000 bbl of
stock-in-tank.
- Average realised price for crude sales in 2024 was
$82/bbl.
- Four liftings are anticipated, evenly distributed, across the
four quarters of 2025, supporting steady cash flow
generation.
- Afentra has currently hedged around 60% of production in 2025
using a combination of put options and collar structures. Current
quarterly hedging uses a combination of $60 to $65/bbl put options
over 60% of estimated sale volumes and call options between $80 to
$89/bbl over 35% of estimated sales volumes.
The Company will maintain a
disciplined approach to financial management ensuring operational
investments are supported by a robust balance sheet and proactive
risk mitigation measures, such as hedging, to manage oil price
volatility. The Company will continue with its balanced approach,
continually reviewing capex plans, to prioritise investments that
deliver clear returns and align with long-term
objectives.
Paul McDade, Chief Executive Officer, Afentra plc
commented:
'2024 was a transformative year for Afentra, marked by the
successful completion of the Azule transaction, through which we
now hold a 30% interest in Block 3/05 and a 21.33% interest in
Block 3/05A. These asset acquisitions have transformed our company,
delivered strong cash flow and, following the receipt of proceeds
from the Q4 lifting, we achieved acquisition payback for the three
completed deals. Combined with our disciplined financial
management, this underpins our strong financial
position.
Operationally, we made good progress in executing the
redevelopment plan presented in our webinar in June 2024, achieving
improved production performance and a substantial increase in water
injection capacity, setting the stage for sustainable growth in the
years ahead. With a clear focus on continuing our asset
redevelopment strategy, we expect strong reserves replacement in
2024 and remain on track to deliver the long-term production growth
potential outlined in our June 2024 webinar.
A
key highlight of the Azule transaction was our ability to complete
it without raising equity, reflecting our commitment to
preserving and enhancing shareholder value. As we look to further growth through
strategic M&A, our disciplined approach will prioritise
high-quality, cash-generative assets that align with our strategic
priorities.'
Investor Webinar Presentation
Afentra plc will host a live online
investor presentation via the Investor Meet Company on Thursday 30 January 2025 10:30am GMT
platform, to provide a review of 2024, share an outlook for 2025,
and answer questions.
In order to participate please
register at Investor Meet Company platform for free and add to meet
AFENTRA PLC via: https://www.investormeetcompany.com/afentra-plc/register-investor
Company presentation can be accessed
here:
https://afentraplc.com/wp-content/uploads/2025/01/FY24_Trading_Update.pdf
1 Net 2024 investment reflects spending
attributable to Afentra's working interests in Block 3/05 and 3/05A
during the year, both pre and post the Azule transaction completion
in May 2024, and does not reflect pro-rata spend based on Afentra's
current working interests.
2 Number reflects Afentra's working interest in Block 3/05 &
3/5A.
For
further information contact:
Afentra plc +44 (0)20 7405 4133
Paul McDade, CEO
Anastasia Deulina, CFO
Burson Buchanan (Financial PR) +44 (0)20 7466
5000
Ben Romney
Barry Archer
George Pope
Stifel Nicolaus Europe Limited (Nominated Adviser and Joint
Broker) +44 (0) 20 7710 7600
Callum Stewart
Simon Mensley
Ashton Clanfield
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. Onshore, Angola Afentra has a 45% non-operated interest in the
prospective Block KON 19 located in the western part of the Onshore
Kwanza Basin. Afentra also 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.
