Very encouraging operational and financial update.
Production Maintenance and Development
Water Injection - recommencing water injection and raising it to an average of 33,000 bwpd in 2023 was instrumental to delivering an increase in production of circa 4-5,000 bopd.
The target set for 2024 was 60,000 bwpd - for peak injection rates to hit the year end target level by April 2024 is an outstanding achievement......and bodes well that the 150,000 bwpd long term target (50% of the equipment capacity) is well within reach.
LWI's - 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. Well on schedule to meet the year end target - with a payback of less than 8 weeks @ $75 Brent. |
Ah yes - apologies my figure is off - thanks for correcting |
Oil revenues aren’t net backs, but will be net cash after the next lifting is sold. |
So will have about $55m with no debt next month
Current Mkt cap of circa. $166m shows the value on offer even without growth |
Net debt well under control here. Which is pleasing. |
And ca $65mn due from oil sales next month. |
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). |
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. |
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 O&G Industry's Incremental Production Initiative set to be approved by President in H2/2024.
Aligning with National objectives to maximise output at producing fields, the initiative also grants license extensions and favourable fiscal terms to investors, thereby covering cost recovery regardless of well results.
Incremental production to Boost Output in Angolan Offshore Blocks - Energy Capital & Power 8th July 2024 |
Strong finish - Closing auction: 48k at 56p (well above the 55.6p Ask price going into the close) |
sorry guys, wrong board!! |
starting to get real traction now...retail report at cannacord was a sector initiation with card the most preferred pick out of entire report.
the thing to note from both cannacord and berenberg is the margin of safety on offer...think berenberg's downside case still got us to 125p...in line with peel (who just do not like card; I contest strongly their 'moonpig eats lunch' thesis is absolute garbage - as does berenberg and cannacord).
i was getting frustrated with share price but in particular the berenberg report (which is 57 pages long) went a long way to reassuring me that this is just fundamentally massively mispriced. |
Behind paywall: hTTps://www.pemedianetwork.com/petroleum-economist/articles/corporate-finance/2024/expanded-afentra-eyes-fresh-growth/?oly_enc_id=7576E3115145D6R |
Excellent MT. Thank you. |
Thanks MT. Appreciated. |
 C3 - good morning and thanks.
Midas / Mail
'The Angolan war was long and bloody and, even though peace was declared in 2002, many still associate the country with hardship and corruption. Not Paul McDade. Formerly chief executive of FTSE 250 group Tullow Oil, McDade now runs Africa energy business Afentra – and he has focused to date on Angola.
Oil accounts for some 40 per cent of the nation's economy and, until recently, state-owned firms monopolised the industry. But under president Joao Lourenco, a privatisation programme has been initiated, and Afentra has been a key beneficiary.
Founded in 2021, the group has spent the past three years working closely with local and international operators, acquiring assets that they no longer want or need.
Today, Afentra has a 30 per cent stake in a huge offshore oilfield in Angola and has taken steps to increase production and improve working practices.
Daily barrels of oil have risen from 17,000 to 23,000. And there are high hopes of reaching 30,000 by 2027 and more than 40,000 over the next six years, by raising production from existing wells and adding new ones across the site, known as Block 3/05.
McDade and his team have an environmental agenda too, with plans to divert the gas that comes off the oil wells to a nearby gas pipe, so it can be used productively rather than polluting the atmosphere.
Afentra has also been selected as a preferred bidder for onshore assets which once produced thousands of barrels of oil a day but have been dormant for years.
Operating in Africa is not for beginners. But McDade is seasoned and he has shown officials, energy groups and investors that he is a man of his word and knows what he is doing.
Block 3/05 is a case in point. The deal involved acquiring stakes from a Croatian oil company, a joint venture between BP and Italian energy giant ENI, and Angola's national oil group.
Securing agreements from all sides took time, but canny deal-making has reduced the ultimate cost from $117million (£93million) to little more than $10million (£7.9million).
More transactions are likely, as McDade scours the west coast of Africa for prospective sites.
Afentra is committed to improving efficiency too – not just financially but environmentally – by introducing up to date extraction methods and cutting back on polluting practices, such as gas flaring.
Midas verdict: Afentra shares have more than doubled from 25p to 53p since Midas recommended the stock in May 2023. Hungry investors may choose to sell half their stock now and bank profits. Longer-term, however, there should be plenty of firepower left in this business.'
'Longer-term, however, there should be plenty of firepower left in this business.'
I agree, not least since in its young life under the new management, Afentra has only just completed making its first investments - all in a very attractively priced outstanding, large, mid life producing asset in Angola with huge, low cost, production development and reserve recovery upside potential.
Subsequent to these investments , according to the public pronouncements of the Afentra management the company is still in its infancy with respect to its organic and inorganic growth development.
My most successful investments in the O&G sector have been in high quality, early stage, undervalued companies with strong growth prospects run by management with a previous track record of success in the industry. Without exception, i ran my original investment and averaged up as the investment case continued to strengthen.......... selling half on the fourth floor of Afentra' 35 storey block of flats under construction, instead of averaging up on pullbacks, would have been a serious error and far reduced the final return.
AIMHO/DYOR |
Morning all and continued thanks to MT for insights.
I see the Mail online has an update behind its M+ section where I'm not registered (I get enough spam in my inbox without that) and wondered if anyone has a 'cut n paste' of that article that could be shared with us? |
Decent volume above the 50ma so some life coming back into this one. |
Closing auction - 199k at full 54p Ask price.....50 DMA back in the rear view mirror, where it belongs considering the value currently on offer at $87.50 Brent!
AIMHO/DYOR |
Fwiw, have been adding over the last couple of days, technical indicators have now turned
Gla |
'Economically naive in the extreme', is one possibility for the flawed policy towards energy provision and security.
Sinister, or downright malevolent, is another.. |
mrn - welcome, good to hear the posts have been of help.
Angolan O&G Industry - With respect to O&G equity investment it's certainly helpful to have Angola's downside protection of a 'Flood Tide'(highly competitive fiscal and operational terms, and long license extensions for mature assets), and the upside potential of a 'Strong Tail Wind'(high quality mid/late life assets being divested by IOC's and NOC's at very competitive prices) behind you!
Essential if you wish to attract high quality second phase operators looking to minimise shareholder risk and maximise investment return.
Infuriatingly, the UK's third rate political and institutional class seem determined to destroy what is left of our once world leading offshore O&G industry. It is a policy that is economically naive in the extreme and putting our energy security during the transition phase to clean energy at huge risk, as New Zealand and Australia are already finding out.
AIMHO/DYOR |
Expect more of them starting from tomorrow. |
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