Afentra plc has secured a contract for Block KON4 in Angola’s Kwanza basin, acquiring a 35% operated interest. The project spans 1,387 square kilometers, includes Angola’s largest onshore discovery, Quenguela Norte, and aims to revitalize legacy oil fields. Shares rose around 3% following the announcement, valuing the company at around £120 million.
Afentra plc has made waves in the energy sector after announcing its contract acquisition for Block KON4 in Africa’s Kwanza basin, Angola. This new venture is particularly significant as it includes a 35% operated interest in an expansive area of 1,387 square kilometers, featuring eleven oil fields and two gas fields that have historically produced around 90 million barrels of oil.
Among the notable fields in this contract is the Quenguela Norte field, which stands out as Angola’s largest onshore discovery. It has an estimated reserve of over 200 million barrels and previously enjoyed peak production rates of up to 12,000 barrels of oil per day (bopd). Afentra’s management sees this as a prime opportunity, citing potential immediate benefits from reactivating legacy oil fields using modern techniques while also embarking on low-cost near-field exploration projects.
In a statement regarding the contract, Chief Executive Paul McDade expressed optimism, referring to the deal as a “significant step.” He noted that the company is already working with partners within the contractor group to facilitate a smooth approval process. This involves preparing for an efficient assessment of the block’s current oil fields and identifying prospects for early development opportunities.
McDade further highlighted the project’s local context, expressing excitement about collaborating with Angolan companies to revitalize historic oil fields through updated production and development techniques, while also assessing the broader exploration potential of the region. He emphasized, “the KON4 license addition will represent a compelling opportunity” as exploration activities have been dormant for over 40 years in this area.
Market reaction has been positive, with Afentra’s share price increasing approximately 3% to reach 52.89 pence, valuing the firm at around £120 million. Investors appear to be encouraged by the prospects that this new initiative may bring to both Afentra and the Angolan economy.
In conclusion, Afentra’s recent acquisition of Block KON4 in Angola represents a strategic move into a historically rich oil-producing region. The company’s partnership efforts and modern field revival strategies are poised to unlock significant value, potentially transforming the local oil landscape. With rising share prices reflecting investor confidence, eyes will be on Afentra as it navigates the path ahead in this promising venture.
Original Source: www.proactiveinvestors.co.uk
