Angola dominated the oil and gas small-cap agenda on Tuesday, with Afentra delivering the first genuinely new exploration result on its flagship block in over ten years. Elsewhere, Empyrean Energy cleared a regulatory hurdle on its Indonesian gas interest that inches it closer to long-awaited cash payments.
Afentra strikes oil at Pacassa SW after decade-long gap
Afentra (AIM:AET) confirmed on Tuesday that its Pacassa SW well had struck oil, reaching a total depth of 5,381 metres and encountering 136 metres of net oil pay in the fractured Albian Pinda carbonate formation, in line with the company's pre-drill model. Management estimates the wider Pacassa SW structure could hold up to 70 million barrels of gross recoverable resources, equivalent to roughly 23 million barrels net to Afentra once its pending Etu acquisition completes. The well is to be completed as a producer and tied into existing Pacassa infrastructure, with first oil targeted for the third quarter of 2026.
Alongside the discovery, Afentra disclosed that Impala-1, shut in since 2017, has been brought back onto production through a light well intervention, flowing at up to roughly 4,700 barrels of oil per day gross, currently constrained to roughly 3,000 bopd to manage water cut. Data gathered from the intervention will feed into planning for the Impala-2 development well, targeted at an initial rate of roughly 4,000 bopd, with drilling expected to start once Pacassa SW operations conclude and results due by the end of the fourth quarter of 2026. The shares advanced roughly 10% on Tuesday to 70.4p, within a 52-week range of 35.33p to 89.4p, putting the company's market capitalisation at roughly £174.4 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," said Paul McDade, chief executive of Afentra.
Afentra described the Pacassa SW discovery as ending a gap that had left the asset's subsurface upside largely untested under the company's ownership. A positive result there speaks directly to whether the block can support the production growth that has underpinned Afentra's investment case since it began assembling its Angolan portfolio, while the Impala-1 reactivation adds a second, more immediate strand: incremental barrels from existing infrastructure at low incremental cost, running in parallel with the exploration upside now confirmed at Pacassa SW.
Empyrean secures approval for Mako stake transfer
Empyrean Energy (AIM:EME) said Indonesia's Ministry of Energy and Mineral Resources has approved the transfer of its 8.5% participating interest in the Mako gas field, satisfying a condition under the settlement Empyrean struck with operator Conrad Asia Energy and its subsidiary West Natuna Exploration in February that resolved historical cash call arrears. Under the accompanying Shareholders Agreement, Empyrean holds its stake through a special purpose vehicle, WNEL Holdings, entitling it to 8.5% of all cash payments including Mako gas sale revenues.
Conrad is still awaiting a separate MEMR approval for its farm-down of a 75% participating interest to Nations Petroleum Natuna Barat, first announced in November 2025, which is expected within weeks. That approval will trigger a first cash payment of $5 million to WNEL, part of an agreed $16 million upfront consideration.
"The receipt of MEMR approval for the transfer of our 8.5% interest completes an important condition precedent under our settlement with Conrad and confirms the clearly defined framework for Empyrean's ongoing participation in Mako gas field," said Gaz Bisht, chief executive. The approval removes one of the last regulatory blockages standing between Empyrean and cash it has been chasing since the Conrad dispute first arose, with the Nations Petroleum sign-off now the key remaining trigger for payment.
