Afentra plc has secured a Risk Service Contract for Block KON4 in Angola’s Kwanza basin, gaining a 35% operated interest. This project covers significant historical oil fields, including Quenguela Norte, an area ripe for modernization and exploration. CEO Paul McDade marks this as a major step for revitalizing local oil production and expansion opportunities.
Afentra plc, a listed oil and gas company, recently announced it has secured a contract for Block KON4 in Angola’s onshore Kwanza basin. This deal, structured as a ‘Risk Service Contract,’ awards Afentra with a 35% operated interest in the project. Covering 1,387 square kilometers, it encompasses eleven previously producing oil fields and two gas fields that once delivered an impressive total of 90 million barrels of oil production.
Among the notable sites is the Quenguela Norte field, recognized as Angola’s largest onshore oil discovery, holding more than 200 million barrels and previously reaching peak production of 12,000 barrels of oil per day (bopd). Afentra is optimistic about revitalizing these legacy fields through modern techniques and exploring nearby fields at a low cost.
In a statement, Chief Executive Paul McDade characterized the contract as “a significant step” for the company. While the approval process is just beginning, McDade mentioned that they are already collaborating with partners to assess existing oil fields and explore early development avenues.
He further detailed the enthusiasm regarding the KON4 license, emphasizing it as a strategic addition to their portfolio of existing onshore licenses. McDade expressed excitement about partnering with local Angolan companies to rejuvenate historic oil fields utilizing advanced production techniques while also unlocking the exploration potential of this largely untouched basin that has seen no exploration for over four decades.
Following the announcement, Afentra’s shares rose by about 3%, trading at 52.89p and giving the company a market value of roughly £120 million.
Afentra’s acquisition of Block KON4 in Angola marks an exciting development for the company, providing a significant 35% interest in a substantial oil project. With potential for both revitalization of historical fields and exploration of untouched resources, this contract positions Afentra favorably in the market. The company’s proactive approach, alongside collaboration with local partners, could unlock significant value moving forward.
Original Source: www.proactiveinvestors.co.uk
