Afentra enters Angolan upstream

The UK independent has acquired stakes in two blocks from Sonangol

“We think of Angola’s upstream as similar to the North Sea around 15 years ago,” Paul McDade, CEO of London-listed independent Afentra, tells Petroleum Economist. McDade was speaking shortly after the company announced the signing of an SPA with Angolan state-owned Sonangol to purchase stakes in blocks 3/05 and 23. The company purchased its 20pc non-operating stake in block 3/05—which produces c.17,000bl/d and will continue to be operated by Sonangol—for an initial consideration of $80mn and a contingent payment of up to $50mn. Afentra’s net share of 2P reserves is around 20mn bl, while the asset’s breakeven price is $35/bl. The block is a “cash-generative asset”, emphasises McDade. Afentra’