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From: JonH🍕
Good write up,, mp saying that the US ‘has 100% control over the Strait’ and again as Afentra has provided an operational update on its offshore Angola portfolio, including the Pacassa SW drilling programme, Impala redevelopment programme and operated activities on Block 3/24. Highlights Pacassa SW – Successful oil discovery, net pay 136 metres, reservoir quality supports pre-drill estimate of 5000 bopd (gross) Impala-1 – Production re-established around ~ 3000 bopd (gross) following light well intervention Impala- 2 – Rig expected to move to Impala-2 post Pacassa SW, results expected end Q4 Block 3/24 – Innovative operating approach reduces survey cost by around 90% Pacassa SW The Pacassa SW well has now reached a total Measured Depth (“MD”) of 5,381 metres and has encountered a significant oil bearing reservoir section in the fractured Albian Pinda carbonate formation, in line with pre-drill expectations. Evaluation of wireline logging data and oil shows has identified gross hydrocarbon-bearing interval of 217 metres, containing an estimated 136 metres of net oil pay, characterised by good quality and fractured reservoir intervals. Initial pressure indications suggest limited pressure depletion, confirming communication with the main Pacassa field. The drilling results are consistent with the Company’s pre-drill geological model and support the previously announced development potential of the wider Pacassa SW structure. Based on the initial evaluation, the results continue to support management’s previously announced view that the Pacassa SW area has the potential to contain up to 70 mmbo of gross recoverable resources (net 23mmbo1), subject to completion of the ongoing technical evaluation and reserves and resources assessment. The well will now be completed as an oil production well and connected to the Pacassa production infrastructure. Completion operations are now underway, after which the rig will be mobilised to the next well location. It is anticipated that following the connection of the well to the production system first oil from the well will be delivered in Q3 2026. Sustainable production rates will be established following well clean-up and flow-back operations. Our current analysis of the well data suggests that a Pacassa SW injection well is unlikely to be required at this time, a final decision will be made ahead of the completion of the current rig operations. The Company will provide a further well update once the well has been production tested and a full evaluation of the data collected has been completed. Impala Redevelopment Impala-1 The Impala-1 well, which had remained shut in since 2017, has been successfully returned to production as part of the Light Well Intervention (“LWI”) programme. During production testing, the well achieved gross flow rates of up to ~ 4,700 bopd and has been producing at around 3,000 bopd, with production intentionally constrained to manage water cut and longer-term reservoir performance. Production was re-established via a slickline intervention that successfully identified and removed a shallow wellbore obstruction after acid stimulation undertaken during an earlier LWI programme had proved unsuccessful. The well intervention also provided valuable reservoir pressure and well productivity data which supports the expected production estimates for the planned Impala-2 development well. Impala-2 Preparation, by the Operator, for the Impala-2 development well continues, with drilling expected to commence upon completion of the Pacassa SW operations subject to a final decision by the Joint Venture Partners on the requirement for a Pacassa SW injection well. The Impala-2 well is expected to take approximately 80 days with results expected end of Q4 2026. The results from the Impala-1 intervention, together with the reservoir pressure data acquired during testing, have reduced subsurface uncertainty and have been incorporated into the final well planning for Impala-2. The well is expected to target an initial production rate of approximately 4,000 bopd and, if successful, would represent the start of the next phase in the redevelopment of the Impala field. Block 3/24 Afentra has successfully completed its first operated offshore campaign on Block 3/24. The programme successfully inspected the Palanca NE, Quissama-1, Quissama-2 and Golungo-1 subsea wellheads, acquiring video, measurement and well integrity data to support the ongoing technical evaluation of the GPQ development. No hydrocarbon leakage or seepage was observed, and the campaign was completed with zero safety or environmental incidents. The data acquired during the campaign will support the ongoing technical evaluation of the block and the maturation of the GPQ development towards a Final Investment Decision (FID). The campaign, managed by Afentra directly, utilised a compact remotely operated vehicle (“ROV”) deployed from a locally contracted vessel. This optimised approach completed the entire scope for a total cost of approximately $60k, representing a material cost saving compared to conventional contracting market rates of between $500k and $1 million for a campaign of this nature. Near-Term Catalysts – Completion and hook up of Pacassa SW production well expected Q3 2026 – Commencement of the Impala-2 development well with results expected end of Q4 2026 – Completion of the Etu transaction expected Q3 2026 – Publication of the HY 2026 Results (mid-September) – Operational update on the redevelopment of the KON 4 Quenguela Norte field – Update on the assessment of the exploration potential across the Kwanza Onshore portfolio Paul McDade, Chief Executive Officer, Afentra plc commented: “The significant oil discovery at Pacassa SW and the material reserves potential provides clear proof of concept for our organic growth strategy and demonstrates the momentum we are building through disciplined execution. 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. 136 metres of net oil pay with exceptionally high quality reservoir makes this one of best wells drilled in the Pacassa area. It supports our view of the wider Pacassa SW opportunity, where we estimate a development potential of up to 70 million barrels of recoverable resources. We now look forward to completing the well and delivering first oil from this new structure. Equally encouraging is the successful restart of Impala-1, which provides a strong endorsement of the low-cost LWI strategy. Returning this well to production at an optimised rate of around 3,000 bopd, having been shut in since 2017, will deliver immediate cash flow and provides invaluable reservoir data that de-risks our upcoming Impala-2 development well. Finally, successfully executing our first operated offshore campaign on Block 3/24 with zero incidents, and at a fraction of standard industry costs, demonstrates the disciplined, pragmatic and entrepreneurial approach we bring to operatorship. This progress, alongside the anticipated completion of the Etu acquisition, positions us exceptionally well to deliver sustainable, long-term value for our shareholders as we advance our world-class Angolan portfolio.” This is about as good as it gets for Afentra as the Pacassa SW well comes in as an oil discovery and a very good one at that, 136m of net pay and the reservoir quality ‘supports the pre-drill estimate of 5/- b/d gross’. There is also good news from Impala-1 where production has been reestablished at around c.3/- b/d following a light well intervention programme which had flow rates of c.4,700 b/d during testing but which is now ‘intentionally constrained to manage water cut and longer-term reservoir performance’. The rig now moves to Impala-2 following the Pacassa SW drilling and we are told to expect results from here at the end of Q4. Elsewhere there is further good news on the operational front from Block 3/24 where an innovative operating approach has reduced survey costs by around 90%. This campaign which was managed by Afentra utilised a ROV which completed the entire scope at a cost of only $60/- ‘representing a material cost saving compared to conventional contracting market rates of between $500k and $1 million for a campaign of this nature’. For me this announcement ticks a number of boxes and is even better than I had been expecting. Obviously the significant oil bearing reservoir section with good quality and fractured reservoir intervals is good but it gets better, the pressure depletion indicates a confirmation of communication with the main Pacassa field. Tick two is that this confirms the management view that the Pacassa SW area has the potential to contain up to 70 mmbo of gross recoverable resources (net 23mmbo) ‘subject to completion of the ongoing technical evaluation and reserves and resources assessment’. It should be borne in mind that this additional 70 mmbo is just that, it adds to the currently booked 103 mmbo of 2P that Afentra has logged and therefore has, in my view a significant additional value. Once this is all put together there will certainly be an upgrade to my TP. Another tick is the fact that Pacassa SW will be completed as an oil producer well with 1st oil expected in Q3 2026 and that an injection well is ‘unlikely to be required at this time’ which is more good news. Clearly in the longer term that might be revisited but right now, subject to partner agreement, this adds to the already improving well metrics. So this is an exciting time for Afentra and totally validates the policy that the company elected to follow some four years ago when they had the vision for the area, up til now its been refurbing and making good and very profitably too but there is more, much more. What we can see now is that investors, who have already seen a near 400% rise in the shares over the last five years, and were amongst the best performers in earlier Bucket Lists still has significant ‘legs’ as we have got to what Paul McDade described to me this morning as ‘the really exciting stuff’. So Afentra is in a very good place having held a rigorous process in recent months which started in March with the announcement of a strategic review. This was followed by an equity raise for $40m in the placing and £2m in the retail offer and also the company has refinanced its debt which has made that much cheaper and more efficient. The strategic review, which remember started with the company stating that it ‘notes the recent media speculation and confirms that it has engaged with a limited number of counterparties with regard to a potential sale process in respect of the entire issued, and to be issued, share capital of the Company’ concluded in May. After an exhaustive review the company said that there had been ‘multiple’ potential bidders who expressed interest but due to oil price volatility and the rise in the Afentra share price a number withdrew and those that remained in the process ‘did not recognise the significant upside value potential in Afentra’s business and that it would remain as an independent E&P listed company’. Phew…! Afentra has now reached an important staging post in its journey and the outlook looks incredibly positive, at Pacassa SW the potential is now undisputed with significant upside in reserves and production, indeed by the year end it could be 30/- b/d and with the Etu deal completed would mean around 10/- b/d for Afentra. At Impala the decision to return now looks to be very wise with excellent operational work that has brought back production after the acidisation process identified and cleared a shallow wellbore obstruction not discovered in previous attempts. This work also provide the reservoir pressure data that supports the production estimates at Impala-2 and is being carefully controlled. As I wrote in previous blogs and also in reiterating its Bucket List status recently I have been aggressively of the view that Afentra has substantial upside. At 71p the shares are up 11% today, 16% over 1 month, +35% on 6 months and has risen 54% year on year. I recently raised my Target Price to 125p and am very glad that I did that, with this discovery and the added potential that can be seen in other parts of the portfolio, and I haven’t even talked about the onshore today, I can see that number as being obsolescent before long. Afentra quite rightly stays as a key member of the Bucket List where it has been since it started. Notes 1 – Net share at 33.33% working interest post completion of ETU acquisition. Share This Story, Choose Your Platform! Facebook X LinkedIn WhatsApp Email Leave A Comment Comment Comment... Name (required) Email (required) Website Subscribe to receive Malcy's Blog by email. We use Mailchimp as our mailing automation platform. By subscribing, you acknowledge that the information you provide will be transferred to Mailchimp for processing in accordance with their Privacy Policy and Terms. Search the site… Search for: Search... 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Current Thread	Author	Time
When the boat comes in . ....[more]	JonH🍕	07:17:24
>> Any excuse ......[more]	LP12	09:56:46
>> It's a Gusher	JonH🍕	10:12:23
>> Good write up,,...[more]	JonH🍕	13:18:44

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