Afentra's Strategic Expansion: Leading Operations in Angola's Rich Kwanza Basin

Afentra's New Operational Mandate in Angola's Kwanza Basin

Afentra has successfully acquired a 35% operating interest in the KON4 block, situated in the onshore Kwanza basin of Angola. This new venture comes after the official endorsement of a Risk Service Contract via Presidential Decree, solidifying Afentra's growing footprint in the region's energy sector.

Collaborative Partnership for Resource Development

The company's acquisition of this license was achieved through a strategic alliance with key local partners: Grupo Simples Oil, Sonangol E&P, Brite's Oil and Gas, and Sodedurs. This collaborative approach is expected to foster robust development and shared expertise within the project.

Strategic Location and Historical Significance of KON4

The KON4 block, nestled within the Kwanza basin, represents a valuable addition to Afentra's operated assets in Angola. This area is historically known for its oil and gas production, and crucially, it encompasses the Quenguela Norte field, which stands as the largest onshore oil discovery to date in the basin.

Re-evaluating the Potential of Quenguela Norte Field

The Quenguela Norte field is estimated to hold over 200 million barrels of discovered oil within its Tertiary reservoirs. Despite past operations ceasing in 1999 after recovering 46 million barrels and reaching a peak production of 12,000 barrels per day, the field presents a significant opportunity for revitalization.

Vast and Productive Kwanza Basin Territory

Spanning 1,387 square kilometers, the KON4 block is part of a basin that has collectively yielded more than 90 million barrels of oil equivalent from 11 oil fields and two gas fields. This historical productivity underscores the area's rich hydrocarbon potential.

Future Prospects: Redevelopment and Exploration Opportunities

The newly established risk service contract paves the way for extensive field redevelopment, alongside the exploration of untapped near-field prospects, particularly within Tertiary and Cretaceous geological formations. This dual focus aims to maximize the block's long-term value.

Logistical Advantages for Production and Export

A key strategic advantage of the KON4 block is its proximity to the Luanda refinery and existing transportation infrastructure. This favorable location is anticipated to facilitate efficient early production and streamlined export operations, enhancing the project's economic viability.

Commencement of Technical Assessments and Data Integration

Afentra's technical team has initiated in-depth subsurface evaluations for KON4, with an immediate priority on restarting production at Quenguela Norte. Concurrently, the contractor group is assessing local permitting requirements and integrating a recent high-resolution eFTG survey with existing seismic data to thoroughly evaluate broader exploration possibilities.

Leadership's Vision for Growth and Redevelopment

Paul McDade, CEO of Afentra, emphasized the significance of the KON4 award, highlighting it as a crucial step in expanding their operated portfolio in the Kwanza basin. He underscored the block's appealing combination of immediate redevelopment potential, anchored by Quenguela Norte, and considerable exploration upside, all supported by favorable fiscal terms and its strategic location near the Luanda refinery. McDade expressed enthusiasm for advancing the work program with partners and providing regular updates on technical progress.

Ownership Structure of the KON4 Block

Under the terms of the awarded license, the ownership distribution for the KON4 block is as follows: Afentra and Grupo Simples Oil each hold a 35% stake, Sonangol E&P possesses 20%, and Brite's Oil and Gas along with Sodedurs each control 5%, forming a diversified and collaborative ownership structure.