Afentra has announced that it has signed Heads of Terms with\u00a0Angola’s\u00a0National Agency of Petroleum, Gas and Biofuels (ANPG) for the Risk Service Contract (RSC) for offshore Block 3\/24, located adjacent to its existing Block 3\/05 & 5A interests in\u00a0Angola. The formal award of the license is expected in the coming months following the completion of the Government approval process.<\/p>\n\n\n\n
Key Highlights<\/strong><\/p>\n\n\n\n Material acreage expansion:<\/strong> Afentra’s gross offshore acreage position increases from 265km2<\/sup> to 810 km2<\/sup><\/p>\n\n\n\n Established discoveries:<\/strong> Block 3\/24 contains five oil and gas discoveries all located in shallow water<\/p>\n\n\n\n Infrastructure-led development:<\/strong> Proximity to Block 3\/05 offers short-cycle, low-cost development potential<\/p>\n\n\n\n Exploration potential:<\/strong> several exploration prospects identified within the acreage on existing 3D seismic<\/p>\n\n\n\n First offshore operatorship:<\/strong> Block 3\/24 provides Afentra’s first offshore operatorship<\/p>\n\n\n\n Contract Terms and Joint Venture Structure<\/strong><\/p>\n\n\n\n Heads of Terms for the Block 3\/24 RSC have been signed with ANPG and set out the following key terms:<\/p>\n\n\n\n – Initial five-year period to review the development potential for existing discoveries and exploration prospectivity.<\/p>\n\n\n\n – 25-year production period that would subsequently be awarded when a discovery is developed.<\/p>\n\n\n\n – Afentra to be Operator with a 40% interest in the block, alongside Maurel & Prom Angola S.A.S. (40%) and Sonangol E&P (20%).<\/p>\n\n\n\n About Block 3\/24<\/strong><\/p>\n\n\n\n Block 3\/24 covers 545 km2<\/sup> and is adjacent to Afentra’s existing producing oil fields and undeveloped discoveries in Blocks 3\/05 and 3\/05A. The block adds a further five discoveries – Palanca North East, Quissama, Goulongo, Cefo and Kuma – all located in the same Pinda reservoir as the existing oil fields in Block 3\/05 and 3\/05A. In addition, the block contains the previously developed Canuku field cluster, which has produced up to 12,000 bopd. The block is estimated to include over 130 mmbbls of STOIIP and 400 bcf GIIP of already discovered resource<\/p>\n\n\n\n These discoveries and previous development assets offer a significant opportunity to apply modern technology to deliver short-cycle, low-cost developments tied back to the existing infrastructure in Block 3\/05. A number of exploration prospects have also been identified based on existing 3D seismic date.<\/p>\n\n\n\n Key Discoveries<\/em><\/strong><\/p>\n\n\n\n – Palanca North East<\/em><\/strong> discovered in 1988, tested at 6,000 bopd (38 API).<\/p>\n\n\n\n – Goulongo<\/em><\/strong> discovered in 1988, tested at a constrained rate of 2,400 bopd (23 API).<\/p>\n\n\n\n – Quissam<\/em><\/strong>a<\/em> discovered in 1987, appraised in 1992 and tested at a constrained rate of ~3,000 bopd (36 API).<\/p>\n\n\n\n – Kuma<\/em><\/strong> discovered in 1988, tested at 1,800 bopd (32 API).<\/p>\n\n\n\n – Cefo<\/em><\/strong> discovered in 1988, tested at 1,150 bcpd and 32 mmcfd (48 API condensate with high H\u2082S content)<\/p>\n\n\n\n – Canuku field cluster<\/em><\/strong> developed by Sonangol (2001-2008); produced up to 12,000 bopd (31 API)<\/p>\n\n\n\n CEO Paul McDade commented:<\/strong>
“We are<\/em> pleased to announce this Heads of Terms and excited to progress towards Operatorship of Block 3\/24, which represents the next step in our strategy to build a material production business in Angola. We look forward to reviewing the most efficient development options for the numerous discoveries, utilising the extensive Block 3\/05 infrastructure. This will provide upside potential to enhance the overall redevelopment plan for the Block 3\/05 area where we expect to significantly increase production and reserves, delivering long-term value and cashflows. Furthermore, we see potential for future infrastructure led exploration given the prospectivity of the area.<\/em><\/p>\n\n\n\n