REG - Afentra PLC - Operations and Financial Update

AfentraAnnouncement

10/07/2024 07:00

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RNS Number : 7653V  Afentra PLC  10 July 2024

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)     3,509(1)     3,926(1)     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          13.8(2)
 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.

 

 

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