UK-headquartered and AIM-listed upstream oil and gas company Afentra has taken steps to secure its first offshore operatorship by expanding its portfolio with another block adjacent to its existing assets off the coast of Angola.
While announcing the signing of the heads of terms with Angola’s National Agency of Petroleum, Gas and Biofuels (ANPG) for a risk service contract (RSC) related to Block 3/24 , which is adjacent to blocks 3/05 and 5A that are part of the firm’s Angolan portfolio, Afentra explains that the formal award of the license is expected in the coming months following the completion of the government approval process.
The proximity of Block 3/24, which contains five oil and gas discoveries – Palanca North East , Quissama , Goulongo , Cefo , and Kuma – in shallow water, to Block 3/05 is perceived to offer short-cycle, low-cost development potential, alongside further exploration possibilities, as several exploration prospects have been identified within the acreage on existing 3D seismic.
After Palanca North East was discovered in 1988 and tested at 6,000 bopd (38 API), Goulongo followed in 1988 and was tested at a constrained rate of 2,400 bopd (23 API), Quissama came in 1987 but did not end up being appraised until 1992 (tested at a constrained rate of around 3,000 bopd (36 API)), Kuma arrived in 1988 and tested at 1,800 bopd (32 API), and Cefo brought up the rear in 1988 and tested at 1,150 bcpd and 32 mmcfd (48 API condensate with high H₂S content).
Paul McDade, Afentra’s CEO, commented: “We are pleased to announce this heads of terms and excited to progress towards operatorship of Block 3/24, which represents the next step in our strategy to build a material production business in Angola. We look forward to reviewing the most efficient development options for the numerous discoveries, utilising the extensive Block 3/05 infrastructure.
“This will provide upside potential to enhance the overall redevelopment plan for the Block 3/05 area where we expect to significantly increase production and reserves, delivering long-term value and cashflows. Furthermore, we see potential for future infrastructure led exploration given the prospectivity of the area.”
As this block provides the UK player with its first offshore operatorship, heads of terms for its RSC set out key terms, encompassing an initial five-year period to review the development potential for existing discoveries and exploration prospectivity, as well as a 25-year production period that would subsequently be awarded when a discovery is developed.
Covering 545 square kilometers, Block 3/24, which adds five discoveries in the same Pinda reservoir as the existing oil fields in blocks 3/05 and 3/05A, contains the previously developed Canuku field cluster , developed by Sonangol, which has produced up to 12,000 bopd. This block is estimated to include over 130 mmbbls of STOIIP and 400 bcf GIIP of already discovered resource.
“These discoveries and previous development assets offer a significant opportunity to apply modern technology to deliver short-cycle, low-cost developments tied back to the existing infrastructure in Block 3/05,” underlined the UK player.
Thanks to this expansion, the firm’s gross offshore acreage position increases from 265 square kilometers to 810 square kilometers. While Afentra is to be the license operator with a 40% interest, its partners in the block will be Maurel & Prom Angola (40%) and Sonangol E&P (20%).
“We appreciate the trust invested in Afentra by the ANPG and our joint venture partners and we look forward to building on the successful collaborative working relationship with Block 3/05 Operator Sonangol to ensure we deliver the full potential of this multi-billion barrel area,” underscored McDade.