Afentra are waiting for their cash position to improve to then farm into tendes assets and sungaras Angola asset win, with a view to list as an enlarged group that also includes etu energias |
MT
Very good informative post.
Thank you. |
 Considering the size of NOC Sonangol's 45% shareholding in the world class Angolan Offshore Blocks 18 And 31, where Tende and Somoil signed in April 2022 to jointly acquire 8.25% and 10.0% respectively of the two assets from Sonangol - there is plenty of scope for Afentra to acquire a sizeable chunk of these very high quality, low operating cost, high cash flow generating assets from Sonangol on a similar backdated deal, to become a potential working partner in the assets with the Tende - Somoil Consortium.
Tende Energy - Somoil JV Partnership in Angola
'SPA Signed to Acquire Interests in Angolan Offshore Blocks 18, 27 and 31
Wednesday, May 4, 2022
Sirius Petroleum and its local JV partner, Somoil S.A., announced that the joint Sirius-Somoil consortium, has signed a legally binding Sale and Purchase Agreement (SPA) with Sonangol P&P to acquire participating interests of 8.28% and 10% respectively in the producing Angolan offshore Blocks 18 and 31 and a 25% participating interest in the exploration Block 27, for a total consideration of $335.5 million.
Proposed Acquisition Summary
Acquiring non-operating interests in prolific deepwater production assets with strong cash flow characteristics. Current gross production from Blocks 18+31 is averaging c.160,000 bopd. Net production entitlement to the Consortium expected to average 15,500 bopd.
Significant cash flow entitlement given low operating costs and unrecovered costs. Major medium and long-term development upside.
Sirius-Somoil will be making targeted investments in Sonangol social projects in Angola as part of its committed strategy of working with partners to improve lives through sustainability initiatives in the community.
Block 31 – Producing
Acquiring a 10.0% interest for a total consideration of US$170m.
Unrecovered development cost balance of c.$14bn boosts contractor group entitlements, enhancing overall EBITDA/bbl and long-term returns. The Block is operated by BP Angola and is located offshore some 400 kilometers north west of Luanda.
The block consists of four oil fields; Plutão, Saturno, Vénus and Marte (“PSVM”), which were discovered between 2002 and 2004 in water depths of up to 2,000 metres in the North East part of Block 31. PSVM is the second BP-operated development in Angola and production started up in December 2012. Licence partners are currently BP (26.67%), Equinor (13.3%), Sinopec International (15%), Sonangol (45%).
Current gross production from the block is averaging c.80,000 bopd. Gross 2P/2C reserves of 275mmbbls relate to existing production and sanctioned developments, according to the operator.
Further gross 2C resources of 516 mmbbls from existing discoveries, according to Gaffney Cline & Associates.
Future payments, on new developments within the block, are contingent on sustained high oil prices (>=$75/bbl) and first oil from long-term developments.
Block 18 – Producing
Acquiring an 8.28% interest for a total consideration of US$165m. The block is operated by BP Angola and is located offshore, 160 kilometers northwest of Luanda. Eight discoveries have been made in this block, of which the fields Galio, Cromio, Cobalto, Paladio, and Plutonio make up the first producing complex known as Greater Plutonio.
Production started in 2007 and remains at material levels. Late last year the Platina project started production adding significant volumes and reserves to total block production. License partners are currently BP (26.67%), Equinor (13.3%), Sinopec International (15%), Sonangol (45%).
Current gross production from the block is averaging c.80,000 bopd.
Gross 2P/2C reserves of 220mmbbls relate to existing production and sanctioned developments, according to the operator.
Future payments, on new developments within the block, are contingent on sustained high oil prices (>=$75/bbl) and first oil from long-term developments.
Block 27 – Exploration
The Consortium is acquiring a 25.0% non-operated interest in this deepwater exploration and appraisal block for a total consideration of US$0.5m.
The block is located offshore in the Kwanza basin, an area known for its gas potential.
The Proposed Acquisition is conditional upon satisfactory due diligence (“DD”) being conducted and following signing of the SPA the Consortium will enter a period of DD of the data for blocks 18, 31 and 27 supplied to the Consortium by Sonangol. The economic effective date of the Transaction is April 2022. Completion is expected to take place in 2022, subject to customary conditions and approvals.
The Consortium expects that the Proposed Acquisition will be financed through the provision of new debt facilities.
Commenting, Bobo Kuti, CEO of Sirius, said: “The acquisition of these interests in such world class producing assets, operated by a supermajor, is in line with our strategy to build a high-quality portfolio of African producing and development assets. We are excited by the long-term growth upside that these assets present and the scale that they bring to the Sirius platform. We have developed a very strong working partnership with Somoil in Angola and look forward to working together as we progress to the completion of this acquisition and to building a significant presence together in Angola.” '
Other than this, would be very surprised and disappointed were Afentra to have any serious interest in Tende's Niger Delta(avoid like the plague) and Tunisian assets. |
Certainly no formal news of Tende and Afentra being partners in anything. It is possible that both names are linked with a 3rd party? but again nothing seen to make it a ‘public fact'.
Maybe wishful thinking by a Tende share holder? |
Tende holder here
Re bleemster post
‘and now they're partnering with Somoil and Afentra (public fact).’
If Tende partnering with AET is a ‘public fact’ would anyone including bleemster like to post a link to that effect? That would help.
Fwiw, I very much doubt Tende are ‘partnering with Afentra’ but it’s hard to argue against ‘public fact’ so I await the confirmation. |
£50k for a seat at the table. |
Very interesting post Bleemster. I too have been invested in Tende (Sirius) for nearly 10 years, bought my first tranche in Dec 2014. I first started buying into AET in Feb'23 when I heard rumours of a connection with Tende and have been so impressed by the AET team. If there is some kind of connection I sincerely hope the AET team drag Tende to some form of successful next phase where we can all take some value after 5 years of suspended Tende shares. |
Interesting post Bleemster and ive heard a similar rumour.Afentra are a well run company with a board that keeps its shareholders updated.Given Tendes track record it seems a match not made in heaven. |
 More food for thought:As a very frustrated large investor in Tende Energy (formerly Sirius Petroleum), I have seen one continuous broken promise after another (public facts). They have hidden the truth from investors for years (public facts), repeatedly delayed asset completions that happens to never be their own fault (public fact), assets that magically disappear in to the void never to be spoke about again (public facts) and now they're partnering with Somoil and Afentra (public fact). I urge you to look into everything Sirius has done, including their (what is perceived) delay tactics, missed deadlines (public fact), and continuously delayed accounts year on year (public fact). It even appears they intentionally delisted from the stock market to avoid market scrutiny (look in to Ororo and where we are with that today).It's no wonder many Tende investors are closely following this thread. What are they all waiting for? If the delay isn't on your end, and the usual excuses like government approval don't apply, then who is causing these delays? Tende? Somoil? Trafigura? NNPCL? Sonangol? Why would you need financing from us who is (officially LoL) way smaller market cap than yourselves which our 'official accounts' (public fact) show we don't have this sort of money.From the other side of the fence's perspective, the speculation/golf course chatter is that we're waiting for your side to announce the rest of the Angola deal, which no one believes, more like a merger or takeover involving you and maybe the names above.Find the reason for the delays, and you'll probably find the answer. This is not a rant nor a ramp, it's just laying out my thoughts. But everything I've said is researchable. My concern is not for Afentra, but is this finally the finish line for us (I hope) or another company Tende to screw over (public fact - too many to mention) |
AXL is more news driven, obviously at the moment. The timing of any AET rise is hard to predict. Just a matter of time... |
Food for thought:
The share price is currently around 20% below the price reached BEFORE confirmation of the completion of the Azule deal. Since then the company will have generated net production from its assets with a sales value worth circa $50m! |
First six months of the year, the opposite was true. I sat and watched frustratedly holding a huge chunk of my portfolio in AXL, while waiting for a pullback to purchase some AET. |
Anything under 50p is a buy as far as I am concerned. |
The lack of patience is a factor to take advantage of as long as the earnings growth and balance sheet is sound. That is the way I make money. I would think there are people selling AET for AXL my other holding so I am simply selling my technology trusts and buying into this AET "dip" rather than a trend downwards. I would be more than happy to buy more at the 200-day average but I can see it not getting there based on valuations and speculatively unexpected news flow that is better than expected news flow.
I now hold both stocks with a view to hold through the growth phase.
I like the hedging coming into play keeping the revenue nice and smooth here. |
Seems a few want to talk this down on the "relentless selling", never cease to amaze the lack of patience in society today across all walks of life, anyway enjoy the sunshine and your health, there a few great posters on the threads I follow with poor health, wish them well in their battles |
chart wise does nayone know where the support line is please ? |
Exactly. Hard to get exited when you don't know what's going on. |
You need a timetable of events showing drivers for share price appreciation |
All about newsflow. None here for a while. They must have performed the August lifting by now but have decided not to tell us..... |
This seems to be ticking down on relentless selling while AXL is slowly ticking up |
Thank you. I was impressed by the teams wide skillset in particular the CFO as well as the team dynamic and mindset. I made an investment. |
MrS - AET is set to be in a net cash position in H2, probably in late Q3, at the current level of production and oil price.
The annual debt interest and capital repayment is forecast to be $10.5m a year over the next 4 years - a small fraction of the free cash annually being generated from the Angolan assets for which they paid a net circa $9.7m.
The latest presentation explains all.
AIMHO/DYOR |
Hi, I am new to researching AET. Can some one please provide me with the interest rates on the RBL and any guestimates when this can be paid off presuming no more investment in growth? The recent share price pullback here is encouraging for new investors. |
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