Boost in oil reserves ahead of rig activity spotlights Angolan offshore block’s potential

UK-headquartered and AIM-listed company Afentra has confirmed that hydrocarbon production from a block off the coast of Angola has been offset by a growth in reserves based on the latest Competent Person’s Report (CPR) for Block 3/05, conducted by ERC Equipoise (ERCE).

Following its entrance into Angola in May 2023, the company disclosed a sale and purchase agreement (SPA) with Azule Energy Angola Production in July 2023 to buy an additional 12% interest in Block 3/05 and a 16% stake in Block 3/05A offshore Angola for a total consideration of up to $84.5 million with an effective date of October 31, 2022.

In an update on the latest CPR for Block 3/05, Afentra highlighted that total net 2P working interest reserves stand at 34.2 million barrels of oil (mmbo) as of December 2024. The firm underlined that gross production of approximately 11 mmbo was offset by a gross increase in reserves of 15.4 mmbo since the previous CPR in June 2023, resulting in a reserve replacement ratio of 140% over 18 months.

In addition, the new data shows that contingent resources on Block 3/05 have increased since the last CPR, with net working interest 2C resources of 13.8 mmbo (gross 46 mmbo). As a result, the company currently estimates Block 3/05A net 2C resources at 7.1 mmbo (gross 33 mmbo).

Paul McDade, CEO of Afentra, commented: “The latest CPR reaffirms the significant potential of Block 3/05. Delivering such high reserves replacement prior to any rig activities or the development of the significant discoveries in Block 3/05A underscores the long-term value of these assets and our belief that the production on these assets can be materially increased.”

Since Afentra’s first CPR in March 2022, 19.4 mmbo has been produced yet gross 2P reserves have remained broadly stable, 114 mmbo compared to 115 mmbo in March 2022. Therefore, the company believes this early reserves performance, even before any rig activity, reflects the significant potential of the Block 3/05 assets to sustain and replenish reserves.

“With rig activity planned to start in 2026, and the planned development of Block 3/05A, we expect to build on this strong initial performance to deliver significant production and reserves growth which will be sustained for many years to come,” emphasized Afentra.

Block 3/05 consists of eight mature producing fields discovered by Elf Petroleum, part of TotalEnergies, in the early 1980s in the Lower Congo Basin and produces hydrocarbons from around 40 production wells with nine active water injectors.

The block’s facilities include 17 wellhead and support platforms and four processing platforms, with oil exported via the FSO Palanca. The National Agency for Oil, Gas, and Biofuels (ANPG) claims that Angola has 30 investment opportunities in the oil sector.

These entail 11 blocks in permanent offers, six onshore blocks, four opportunities in marginal fields with existing discoveries, and nine blocks for the 2025 bidding round.