Afentra (AIM:AET), the AIM-listed upstream oil and gas company, shares surged 10.7% to 70.3p after the AIM-listed firm struck oil at its Pacassa SW well in Angola.
The well reached 5,381 metres and encountered 136 metres of net oil pay in the fractured Albian Pinda carbonate formation, in line with the company's pre-drill geological model.
Management estimates the wider Pacassa SW structure could hold up to 70 million barrels of gross recoverable resources, equivalent to 23 million barrels net to Afentra once its Etu acquisition completes.
The well will be completed as a producer and tied into existing Pacassa infrastructure, with first oil targeted for the third quarter.
Separately, the Impala-1 well, shut in since 2017, has been returned to production through a light well intervention, flowing at up to 4,700 barrels of oil per day gross and currently constrained to around 3,000 bopd to manage water cut.
Data from that intervention will feed into planning for the Impala-2 development well, targeted at an initial 4,000 bopd, with drilling expected to start once Pacassa SW operations conclude and results due by the end of the fourth quarter.
On Block 3/24, Afentra completed its first operated offshore campaign, inspecting four subsea wellheads using a compact remotely operated vehicle for around $60,000, against typical industry costs of $500,000 to $1 million.
"The Pacassa SW discovery is a major milestone for the Block 3/05 partnership, representing the first well delivered on Block 3/05 in more than a decade," chief executive Paul McDade said.
Half-year results are due in mid-September, alongside an expected update on the Etu transaction, targeted for completion in the third quarter.
News Intelligence what this means for the company
Afentra has delivered a discovery at Pacassa SW with 70 million barrels of gross recoverable potential (23 million net to Afentra post-Etu acquisition) and restarted the Impala-1 well at ~3,000 bopd through low-cost intervention. The Pacassa SW well will tie into existing infrastructure with first oil targeted for Q3, while Impala-1 data will inform the Impala-2 development well due by end-Q4—both represent near-term production additions to a company with only 18 staff and a focused Angola portfolio.
The discovery and well restarts advance Afentra's stated strategy of developing near-field and short-cycle plays, adding material production within the calendar year. Against the company's June 2026 fundraise of US$42.7m, the low-cost survey completion ($60,000 versus $500k–$1m industry norm) and light well intervention demonstrate operational discipline, though the Etu acquisition completion—expected Q3—remains a key catalyst for realizing the net resource upside.
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Pacassa is likely to add material reserves
Daniel Slater, analyst at Zeus Capital, described Pacassa SW as a good result that's likely to add material volumes to reserves, and support production growth in the coming months.
Zeus rates Afentra as a Buy, with a 125p target, ahead of the next phase of well testing and results from Pacassa SW, and then Impala‑2, the junior oiler's next well, which Slater sees as the key near‑term catalysts.
The analyst added that Sonangol's funding of Afentra's share of drilling costs materially reduces the company's exploration cash risk while preserving upside from the success case.
