Afentra Share Discussion Threads

[mount teide] 31/5/2024 15:42

Strong finish to the week - plus a closing auction of 56k at the full 60p ASK price.

[mirabeau] 30/5/2024 17:26

'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.'

[mount teide] 30/5/2024 15:06

'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

[someuwin] 30/5/2024 13:44

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..."

[fatfish] 30/5/2024 13:28

can't read it can you copy and paste it ??

[cat33] 30/5/2024 13:15

Great summary of the AET resultshttps://oilman.beehiiv.com/p/oilman-jims-letter-30-may-2024Makes it all really clear

[yousif] 30/5/2024 11:25

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.

[mount teide] 30/5/2024 10:25

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.

[hubs] 30/5/2024 07:15

Thankyou ODR for bringing this to my attention,a while back. Sticking around for more...gla:)

[someuwin] 30/5/2024 06:59

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."

[apotheki] 30/5/2024 06:45

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."

[eringael] 30/5/2024 06:42

Apologies oilinvestor that was my futile attempt at sarcasm, no intention of selling for a few years lol!!

[someuwin] 30/5/2024 06:30

All sounds hugely positive.

[oilinvestoral] 29/5/2024 17:33

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 !

[fatfish] 29/5/2024 16:52

due a little consolidation at this price before the next rise, judging by the graph.

[eringael] 28/5/2024 14:57

Why is this dropping time to sell!!!

[mount teide] 27/5/2024 09:40

C3 and P2 - good to hear your research identified a compelling investment case, that led to you both joining the shareholder's register.

We may not have long to wait for the next acquisition going by Paul McDade's comments in an 'Upstream' interview last week - unsurprisingly, Angola again is the most likely target market.

Following closure of the Azule deal Mcdade added Afentra aims to “capitalise on further compelling opportunities in Angola as well as in target markets in West Africa”


UK junior completes trio of ‘complex’; Angola deals and eyes other opportunities - Upstream 23 May 2024

London-listed Afentra has completed the third and final acquisition of non-operated stakes in two shallow Angolan blocks, concluding a “complex”; process that began in September 2021.

With this trio of deals under its belt, the company is now looking out for other opportunities to expand in Angola and West Africa.

The last transaction, unveiled in July 2023, involved buying a 12% interest in Block 3/05 and a 16% interest in Block 3/05A from Azule Energy, the Eni-BP joint venture.

This acquisition has increased Afentra’s interest in Block 3/05 to 30% and in Block 3/05A to 21.33% and is the last of three deals it put in place to access assets operated by state-owned Sonangol.

Afentra’s share price was up 2.11% at 55.75 pence (71.23 US cents) in mid-morning trading on Thursday.

Cash payable at completion of the Azule deal was $28.4 million, compared to the original cash consideration of $48.5 million, a reduction caused by cash flow adjustments as of the transaction’s effective date of 1 October 2022

Total production from both blocks in the first four months of 2024 averaged about 23,000 barrels per day. A light well Intervention programme that began last year is continuing, with a further 45 interventions planned over two campaigns.

Commenting on completion of the Azule transaction, chief executive Paul McDade said it marks “the final step in the complex process of acquiring a material equity position in both Block 3/05 and Block 3/05A through three separate transactions”.

“We have now achieved our first goal of having significant exposure to these world-class production and near-term development assets,” he added.

He said the next step, working with the block partners, “is to deliver the “full potential” of these assets while also reducing their carbon footprint of the assets.

McDade remarked that, as with Afentra’s previous two transactions with Sonangol and Ina covering blocks 3/05 and 3/05A, the Azule deal structure ensures the company “benefits from net cash flow from the assets while working through the completion process, significantly reducing the cash payment at completion.”

He added that Afentra aims to “capitalise on further compelling opportunities in Angola as well as in target markets in West Africa”.'

[puzzler2] 26/5/2024 18:54

Agreed - all credit to MT for highlighting Afentra - I bought a while back at 37p, so all good for me (so far).

[kevjones2] 26/5/2024 15:14

Somaliland is highly prospective.Odewayne will eventually be huge for Afentra.

[excellance] 26/5/2024 13:36

Yes. Sterling Energy SEY were acquired by RTO and evolved into African Energy Transition, AFENTRA, and after a couple of years of negotiations and applications they have landed with a very promising package of production and exploration licenses, and a bit of debt to factor into the mix, but they essentially used the preexisting Sterling Energy bank balance which was from memory about £25m, which was a great start.

chinguetti and the Kurdish licenses are long gone, there maybe something in Somalia left but it is negligible if it still exists.

[dunderheed] 26/5/2024 13:22

1095 yes but without (most of the) the staff, lol!

[cardinal3] 26/5/2024 13:00

I took the plunge last week after looking at this thread. Thanks MT.

[cat33] 26/5/2024 12:51

Good summary from Jimhttps://oilman.beehiiv.com/p/oilman-jims-letter-26-may-2024Worth reading