Afentra snaps up interests in two offshore Angolan blocks

London-listed Afentra has signed a sales and purchase agreement to acquire minority shares from Croatia's INA in two blocks off the coast of Angola, the company said on July 19.

Afentra is set to take a 4% stake in Block 3/05, building on a deal it struck to buy a 20% interest in the acreage from Angola's state-owned Sonangol in April. The company will pay an initial $9mn, a further $10mn when the licence for the block is extended, and up to $6mn over three years depending on oil prices with an annual cap of $2mn.

The company will also acquire a 5.33% interest in the adjacent Block 3/05A, providing it with an opportunity to tie back existing oil and associated discoveries there to infrastructure at the first block. It will initially pay $3mn plus a contingent sum of up to 45mn, depending on the future development of the finds, and oil prices.

The transaction, which will be backdated to September 30, 2021, gives Afentra 24mn barrels of oil in 2P reserves and 4,680 barrels/day of production. Development of associated gas resources at the acreage can help improve Afentra's environmental social and governance (ESG) standing, the company said.

"This incremental acquisition is strategically attractive as it enhances the materiality of our entry into Angola and provides additional exposure to proven assets with significant upside," Afentra CEO Paul McDade said in a statement. "Block 3/05 is a high-quality asset with stable and robust cash flow and material production growth potential."