Afentra (LSE:AET), the AIM‑listed upstream oil and gas company focused on African production and development assets, has signed new SPAs to acquire additional interests in Blocks 3/05 and 3/05A with Sonangol electing to participate and drilling has commenced with the spud of Pacassa SW.
The transaction increases Afentra's interest by 3.33% in Block 3/05 and 3.66% in Block 3/05A and completion is expected in Q2 2026, subject to customary conditions including Angolan government approval.
The two‑well drilling campaign is fully financed and carried by Sonangol with costs to be recovered from future incremental production and therefore is not expected to affect Afentra's 2026 cash capex.
The programme targets a potential gross production uplift of about 9,000 bopd and gross recoverable resources of over 100 mmbo, with the initial well expected to take 70-80 days and the second planned as Impala‑2.
Operationally Afentra reported gross average production of 20,006 bopd (net 5,958 bopd) for Q1 and lifted 517,643 bbls in January generating $33.8m of revenue, with a further ~500,000 bbl lifting in April expected to yield roughly $50m after hedging.
At 31 March Afentra had cash resources of $18.5m (including $5m restricted), a drawn RBL of $31.5m and net debt of $12.6m, and received a $30m prepayment against the April cargo repayable from cargo proceeds.
Refinancing discussions are well advanced to enhance access to debt capital and the existing RBL has been amended to support those plans.
"We commenced the first drilling campaign for over a decade on Block 3/05, with the prospect of a transformational increase in our production and resource base," Paul McDade, Chief Executive Officer, said.
