Operations and Financial Update

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)	3,5091	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 [phone]

Paul McDade, CEO

Anastasia Deulina, CFO

Buchanan (Financial PR) [phone]

Ben Romney

Barry Archer

George Pope

Peel Hunt LLP (Nominated Advisor and Joint Broker) [phone]

Richard Crichton

David McKeown

Georgia Langoulant

Tennyson Securities (Joint Broker) [phone]

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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