 Annual Report - Block 3/05 - Production Development Planning
The 4,000 bopd production growth achieved over the 12 months to May 2024 for a total cost of $15m is remarkable and, highlights well the tremendous untapped potential of the assets. The result of a failure to carry out production development activities on Block 3/05 since 2015 and, drill an infill well since 2005.
This uplift in production was delivered through a combination of increased operational uptime of 87%, the successful delivery of 30 light well interventions and increased water injection volumes.
4,000 bop/d is 1.46m bbls/yr. At an average $82.5/bbl this would generate circa $120m of gross annual revenue.
'Light Well Interventions - In 2023, an initial phase of 30 Light Well Interventions (‘LWI’) were successfully completed. A further phase of 30 interventions commenced in September 2023 and are ongoing. To date this LWI program has delivered on average an additional 140 bopd per intervention at an average cost of $420,000 each, delivering incremental production and gross daily production rates exceeding 21,000 bopd during
the second half of 2023.
At current oil prices these LWIs pay back in less than 6 weeks. Gross production for the first four months of 2024 has averaged 23,000 bopd.
Further opportunities have been screened and will be ranked into future programs to sustain the base production. These future LWIs will also include gas lift change out of selected wells to further optimise production.
The result of these efforts was reflected in our 2P Gross reserves increasing to 110 mmbbls as of 30 June 2023 and a reserve replacement ratio of in excess of 150% in the first half of 2023. These reserves are from existing producing fields so do not rely upon the construction of new infrastructure which limits incremental emissions. The base opex associated with the assets is attractive at $23/bbl in 2023.
Production performance through 2H 2023 has been excellent and this data has not been incorporated into an updated CPR but will be added in the 2024 reserves updates.
In 2024, planning continues on the next phase of activities targeting continued production growth. This will consist of an initial phase of installing artificial lift in the form of ESP’s and heavy workovers with an investment decision in 2H 2024.
A further phase of investment will consist of infill wells and development of appraised discoveries.'
Page 37: Well optimisation and infill drilling has the potential to raise the 20,000 bopd base production to 38,000 bopd by 2028 and to around 42,000 bopd through development of the satellite discoveries by 2029.
'Artificial Lift project and Heavy Workovers - The aim of the installation of artificial lift with ESPs in the initial phase is to return production from shut-in wells that are unable to flow naturally. More than 30 opportunities were screened and 10 have been selected as tier 1 and 2 candidates. These projects are not currently in the reserve base.
Heavy workovers, such as gas lift change out, will enable additional existing well stock performance improvements. Sidetracks of existing wells will target bypassed oil pay. These activities are expected to grow near term production and will add incremental reserves.
New Wells - Longer cycle potential associated with infill drilling campaigns and access to shallower oil pools in the Labe and Malembo reservoirs are under consideration to further grow production and reserves. Over 20 opportunities have been identified across Block 3/05. These consist of infill wells in fields to target undrained fault compartments, development of appraised discoveries and near field wildcat wells.
Infrastructure Led Exploration (ILX) - The JV partnership have identified a significant opportunity adjacent to the Pacassa field. A well is being planned which when drilled, if successful, will be brought on stream immediately through the existing infrastructure. The JV partnership are re-processing existing legacy seismic data with the aim of identifying further targets and a modern 3D Seismic acquisition program may be considered.' |
Askar Ashinbayev owns 21.27% of shares . Up from 6% on Admission Sep 2023 |
Lots of lovely snippets in the AR.... Here's one : next CPR to add ~25m barrels of 2P and 2C .....mostly 2P imo. Net 7.5m to #AETHere's another: Block 3/05A has the potential for 10kbopd with little additional infrastructure costs - at 21.33% u can do the maths! |
Bought a few more this afternoon. |
Onedayrodders….nothing to do with recent rise then,give us a comeback some suckers will believe you. |
Fears in the oil price I should add |
thanks MT ... Doesn't seem to have allayed the general fears judging by the immediate weakness in the Oil price. |
Nice end, yes |
Strong finish to the week - plus a closing auction of 56k at the full 60p ASK price. |
'Afentra has certainly showed a clean set of heels to many in the market with their strategy in Angola. Azule that recently announced completed showed that they haven’t lost their skills in dealing in Africa and with deals front loaded in their favour the length of time taken to complete is more than mitigated by cash inbound.
Given their success they are already up to more M&A and also working with the Government as preferred bidder they can expect to see some very special blocks for future development. The shares have more than doubled in a year and the board havec skin in the game, I expect much more in due course.' |
'With these initial transactions, we have successfully proved our suitability
as a credible counterparty for divesting IOCs/NOCs, our ability to deliver high value accretive deals, and to fund these types of deals through smart deal making.
The market dynamics in Africa continue to support our inorganic growth strategy and we are actively screening compelling opportunities that meet with our commercial criteria. We look forward to updating the market through what will be an active year ahead for Afentra.'
'Selected as the preferred bidder for 45% non-operating equity in both KON15 and KON19 located in the Kwanza Basin onshore Angola.'
To be awarded preferred bidder status for a 45% working interest in these two blocks by ANPG the National Concessionaire (Granting Authority), with Sonangol, the Angolan NOC as operator, is no mean feat.....and a good steer as to the likely prospectively, as it was rubber stamped by these blocks receiving the most tender offers.
It is inconceivable that Sonangol will not have been given first pick of these blocks as operator in the most recent licensing round. So, for Afentra to have been selected as a preferred bidder and awarded a huge 45% working interest is a major thumbs up with respect to the management's professionalism and competence in establishing itself as a highly credible counter party and partner - this will surely have not been missed by other divesting IOC's in Angola, and across the wider African continent.
AIMHO/DYOR |
Think long term - think big!
"Strategic Progress
While these initial deals have been transformative for the Company, they also represent initial steppingstones to our longer-term growth ambitions as we seek to build a multi-jurisdictional business of scale in our target markets in Africa..." |
can't read it can you copy and paste it ?? |
I just feel after reading the recent RNS that they are currently working on big new deals and will announce them to market during the course of this year. |
Annual Results and outlook speaks for itself - in a word, outstanding.
'The Market Timer's Hall of Fame has got no one in it!' ...... is something Warren Buffet likes to quote.
Buying value and having the patience to wait for market greed to play its role has proved the test of time over many decades as the optimum strategy to generate the best returns.
A value investment with strong ongoing growth thrown in is the holy grail. |
Thankyou ODR for bringing this to my attention,a while back. Sticking around for more...gla:) |
Very brief commentary on the results from Tennyson today. Ends with the following (are they hinting that there maybe more news before then?)...
"...We look forward to a fulsome update on the portfolio and growth prospects on 11 June at the planned investor presentation – the first opportunity to showcase the potential post completion." |
Commenting on the update, CEO Paul McDade said:
"Last year was another transformative period for the company as we completed our first two transactions in Angola. The subsequent completion of the Azule transaction represented another key milestone for Afentra as we, alongside our partners, turn our attention to realising the significant organic growth opportunities that we see in the quality portfolio that we have assembled. With these initial transactions, we have successfully proved our suitability as a credible counterparty for divesting IOCs/NOCs, our ability to deliver high value accretive deals, and to fund these types of deals through smart deal making. The market dynamics in Africa continue to support our inorganic growth strategy and we are actively screening compelling opportunities that meet with our commercial criteria. We look forward to updating the market through what will be an active year ahead for Afentra." |
Apologies oilinvestor that was my futile attempt at sarcasm, no intention of selling for a few years lol!! |
All sounds hugely positive. |
Yes time to sell because share prices are supposed to go up in straight lines! SMHSome people don't deserve to have access to their own money ! |
due a little consolidation at this price before the next rise, judging by the graph. |
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