23rd Jun 2025 11:16
(Alliance News) - Afentra PLC shares rose on Monday after it announced the initialling of a risk service contract for Block KON4 in Angola's onshore Kwanza basin.
The stock was trading 4.7% higher at 53.80 pence per share late on Monday morning in London.
Afentra said it has been in talks to secure an operated interest in KON4, and the RSC initialling "marks a significant step forward" in this process.
Afentra will be KON4's operator with a 35% equity interest under the terms of the proposed RSC, which still has to progress through the formal governmental approval process.
The company said it "will provide a further update to the market once the agreement has been fully executed and signed".
KON4 is in a "historically productive" part of the Kwanza basin, with 11 oil and two gas fields discovered and over 90 million barrels of oil equivalent produced to date. Afentra further noted that it includes "the largest onshore discovery to date", the Quenguela Norte field, which reached peak production of 12,000 barrels of oil per day before its abandonment in 1999, and is estimated to hold over 200 mmbbls of discovered oil.
"[KON4] offers both short cycle, low-cost production opportunities linked to field redevelopment alongside low-cost near-term exploration potential similar to that being pursued in KON15 and KON19," Afentra said.
Chief Executive Officer Paul McDade commented: "The initialling of the KON4 RSC is a significant step in our continued strategy to build a material position in onshore Kwanza basin in Angola.
"While this marks the beginning of the formal approval process, we are already working closely with our partners in the contractor group to prepare for an efficient review of the block's existing oil fields and the potential for early development opportunities...The addition of the KON4 license to our existing onshore licenses will represent a compelling opportunity to work with local Angolan companies to both revitalise historic oil fields with modern production and development techniques as well as understand the full exploration potential of this underexploited basin where exploration activities stopped over 40 years ago."
By Emma Curzon, Alliance News reporter
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