24 April 2025

AFENTRA PLC

UNAUDITED ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2024

Afentra plc ("Afentra" or the "Company") (AIM: AET), the upstream oil and gas company focused on acquiring production and development assets in Africa, announces its unaudited annual results for the year ended 31 December 2024.

2024 SUMMARY

Key Highlights

•       Azule acquisition: completed in May 2024, increasing interest in Blocks 3/05 (30%) and 3/05A (21.33%).

•       Onshore Kwanza basin: secured Blocks KON15 (45%) and KON19 (45%).

•       2024 Net Average Production: 6,229 bopd

•       Reserve replacement: 140% replacement with year-end 2P reserves of 34.2 mmbo

•       Oil Sales: four crude liftings generating revenue of $180.9 million.

•       Year-End Net Cash Position: $12.6 million with cash balance of $54.8 million.

Financial and Risk Management Highlights

•       Revenue of $180.9 million

•       Year-end cash of $54.8 million; net cash position of $12.6 million.

•       Borrowings of $41.4 million; total debt / adjusted EBITDAX 0.5x.

•       Adjusted EBITDAX of $90.9 million and profit after tax of $49.8 million.

•       Four liftings totaling 2.3 mmbbls, average price of $82.2/bbl

•       Placed 2025 hedge programme with ~68% of sales volumes hedged: combination of $60-65/bbl floors and calls with $80-89/bbl caps.

Operational Highlights

•       Block 3/05 and 3/05A gross average production 21,111 bopd (2023: 20,180 bopd).

•       40 light well interventions (LWIs) delivered 2,000 bopd. Increased programme planned for 2025.

•       Reserve replacement since last CPR of 140% for Block 3/05, as a result of the LWI programme, increased water injection and infrastructure optimisation.

•       Three year re-development plan launched in 2024, $150 million gross (Net: $39 million)[1] invested in production optimisation, life extension and emissions reduction. 2025 spend of $180 million (Net: $54 million).

•       Successful completion of a 21-day maintenance shutdown in October enabled key upgrades to power systems, subsea infrastructure and installation of gas and water metering.

•       Water injection capacity significantly enhanced post shutdown, reaching rates of over 80,000 bwpd. A third pump is scheduled for installation in 2025, targeting water injection rates of 150,000 bwpd.

•       Installation of gas metering to support accurate measurement, flare reduction and export planning.

•       Planning progressed to prepare for first rig related activities in 2026 and 2027.

•       Onshore Kwanza Basin Blocks KON15 and KON19 secured with 45% non-operated interests. Basin-wide eFTG survey commenced in 2024 and is due to complete in 2025.

•       Initiated support for The HALO Trust's landmine clearance work in Angola.

Post year-end Summary

•       Gross Block 3/05 and Block 3/05A production for Q1 2025 averaged 22,120 bopd (Net: ~6566, bopd).

•       Crude lifting of ~466,000 bbls sold at $74.7/bbl, generating pre-tax sales revenue of $34.8 million.

•       Net cash at end of Q1 2025 of around $9.8m with crude oil stock of around 68,000 bbls.

•       Formal signing of onshore Kwanza block KON 15 on 7th April 2025.

•       Acquired 381,719 shares in the market through Employee Benefit Trust to fulfil recent Executive share awards, thereby avoiding issuance of new shares.

Strategic Focus for 2025

•       Continued focus on value driven M&A in Angola and wider West Africa region.

•       Investments in Block 3/05 and Block 3/05A and active JV partner collaboration to drive:

o  progress infrastructure upgrades, increase water injection rates and deliver well interventions to continue to increase production and improve asset performance.

o  plan for 2026 rig activities to deliver step change in production performance and continue to deliver reserves replacement.

o  continue sustainability initiatives to reduce emissions and deliver gas export.

•       Consolidate position in Onshore Kwanza Basin and complete evaluation of basin potential.

•       Optimise crude offtake, hedging programme, focus on costs and strengthen corporate balance sheet.

•       Continue to purchase shares in the market through Employee Benefit Trust to meet the requirements of the FSP awards due March 2026, of around 6.5 million shares.

Paul McDade, Chief Executive Officer, commented:

"2024 marked a year of transformative growth and strategic progress for Afentra, as we truly established ourselves as an active partner in Angola's oil and gas industry. With ownership of our offshore assets in place, we were able to embed ourselves operationally, build strong relationships with our joint venture partners, and demonstrate the value we can bring as a technically engaged and commercially disciplined non-operator. Afentra is fully supporting the operator, taking a long-term approach to maximising value from the assets through upgrades to asset integrity, production optimisation, and emissions reduction. We are already seeing tangible results from these redevelopment activities in enhanced production and reserves.

Opening our Luanda office and appointing an Angola-based Country Manager reflect our long-term commitment to the country and its energy sector. Further expanding our footprint, we secured new onshore opportunities through the award of KON15 and KON19 in an under-exploited yet proven hydrocarbon basin.

Importantly, we've also transformed our balance sheet-generating strong cash flow and ending the year with a net cash position-laying the foundation for disciplined growth ahead."

YE 2024 Results Presentation: https://afentraplc.com/wp-content/uploads/2025/04/2025.04-Afentra-YE-2024-Results-Presentation.pdf  

For further information contact:

Afentra plc +44 (0)20 7405 4133

Paul McDade, CEO

Anastasia Deulina, CFO

Christine Wootliff, Investor Relations

Burson Buchanan (Financial PR) +44 (0)20 7466 5000

Ben Romney

Barry Archer

George Pope

Stifel Nicolaus Europe Limited (Nominated Adviser and Joint Broker) +44 (0) 20 7710 7600

Callum Stewart

Simon Mensley

Ashton Clanfield

Tennyson Securities (Joint Broker) +44 (0)20 7186 9033

Peter Krens

About Afentra

Afentra plc (AIM: AET) is an upstream oil and gas company focused on opportunities in Africa. The Company's purpose is to support a responsible energy transition in Africa by establishing itself as a credible partner for divesting IOCs and Host Governments. Offshore Angola, Afentra has a 30% non-operated interest in the producing Block 3/05 and a 21.33% non-operated interest in the adjacent development Block 3/05A in the lower Congo basin and a 40% non-operating interest in the exploration Block 23 in the Kwanza basin. Onshore Angola, Afentra has a 45% non-operated interest in the prospective Blocks KON15 and KON19 located in the western part of the onshore Kwanza basin. Afentra also has a 34% carried interest in the Odewayne Block onshore southwestern Somaliland. 

Standard

Estimates of reserves and resources have been prepared in accordance with the June 2018 Petroleum Resources Management System ("PRMS") as the standard for classification and reporting.

Technical Information

The technical information contained in this announcement has been reviewed and approved by Robin Rindfuss, Head of Sub-Surface at Afentra plc. Robin Rindfuss has over 30 years of experience in oil and gas exploration, production and development. He is a member of the Society of Petroleum Engineers (SPE) and holds a Bachelor of Science (BSc) and a Bachelor of Science Honours (BSc Hons) in Physics and Mathematics from the University of Cape Town.

Inside Information

This announcement contains inside information for the purposes of article 7 of Regulation 2014/596/EU (which forms part of domestic UK law pursuant to the European Union (Withdrawal) Act 2018) and as subsequently amended by the Financial Services Act 2021 (UK MAR). Upon publication of this announcement, this inside information (as defined in UK MAR) is now considered to be in the public domain. For the purposes of UK MAR, the person responsible for arranging for the release of this announcement on behalf of Afentra is Paul McDade, Chief Executive Officer.

ChIEF EXECUTIVE OFFICER's Statement

Delivering Value Driven Growth

Introduction

2024 has been a period of transition in which we completed the third of our production acquisitions in Angola and have started to make material progress in enhancing the production and reserves from the assets acquired. In addition, we have expanded our portfolio with new opportunities onshore Angola which we identified as we further embedded ourselves as a leading Independent in the evolving landscape of Angola's upstream industry.

The completion of the Azule transaction in May was a watershed moment for Afentra and provided us with the opportunity to articulate the true value-accretive nature of these inaugural deals.  The fact that we were able to construct our current portfolio, underpinned by robust cash flow, proven reserves and material upside, for less than $10m net outflow reflects our mantra of Value Driven Growth, whereby we seek to grow the business responsibly alongside an unwavering focus on delivering shareholder value. 

Realising the upside

Our focus on value creation is not exclusive to our shareholders but extends to our broader stakeholders. The completion of the Azule transaction in May increased Afentra's equity interest by 12%, resulting in a material position in the high-quality Blocks 3/05 and Block 3/05A.  As per our stated business model, the assumption of a meaningful non-operated interest in any asset brings a duty to support the Operator and partners in enhancing the value of our shared assets.  A core point of difference at Afentra is the breadth and depth of our technical expertise. We are working closely with the Operator, Sonangol, to support them on the optimisation activities on Block 3/05 - as well as tabling technical solutions to deliver meaningful long-term impact to the sustainability performance of the assets.

The improved performance of the asset has been a key highlight for 2024 and has validated our technical view that these assets will provide material scope for production optimisation for decades to come. The 15-year runway provided to the Joint Venture partners by the licence extension out to 2040 ensures we have visibility and confidence in our ability to extract additional value from the nine producing fields and three  discoveries that these diverse and large-scale blocks contain.  The redevelopment works at Block 3/05, along with well interventions, have resulted in improved production and water injection performance, and we believe the continuation of the asset improvement work programme in the coming year will continue this trajectory.  

Block 3/05 and Block 3/05A gross average production has increased from 20,180 bopd (2023) to 21,111 bopd for 2024, an increase of 5%. A successful maintenance shutdown was delivered that focused on the long-term asset reliability and integrity which will serve the partnership as we deliver the next stage of Block 3/05 and Block 3/05A redevelopment.  The work performed in the shutdown has already had a positive impact on water injection resulting in rates exceeding up to 80,000 bwpd, on one of our key asset targets, versus an average in 2024 of 23,100 bwpd. The near-term investment in future-proofing the asset will better enable the partnership to realise full value from the asset which we believe has significant upside potential. As we presented at our webinar in June 2024 we consider these assets to be capable of delivering sustained production at levels above 30,000 bopd and materially higher levels of reserves. To date we have already added 18mmbo of gross reserves since acquisition. We remain fully focused on realising this potential upside value through focused execution.

Expanding the portfolio

Another key development this year has been our further expansion in Angola through our focus on the onshore Kwanza basin, an under-exploited and overlooked proven hydrocarbon basin with both low-cost exploration opportunities and numerous previously producing oil fields that we consider to have been abandoned prematurely. In July 2024 we were awarded a 45% non-operated interest in KON19 alongside two local companies and post-period end in February 2025 we were awarded a 45% non-operated interest in Block KON15 alongside Sonangol.  We believe these onshore licences strategically complement our offshore activities and provide long-term opportunities in the form of low-cost exploration in a proven basin - an area of expertise in which our team has significant experience.  It is particularly pleasing to demonstrate our commitment to further develop the Angolan industry by partnering with local companies.  This approach, coupled with our proven status and in-country network, may present further opportunities for low-cost exploration and development in this opportunity-rich area.

Alongside the organic growth opportunities we see within our existing portfolio and established foothold in Angola, we continue to screen strategically complementary M&A opportunities and retain strong liquidity on the balance sheet that will be put to work when we identify an opportunity that fits our investment criteria.  Having completed transactions with both IOC's and Sonangol in Angola, we have proven our ability to be a credible counterparty and it is clear that after only three years of operating the Afentra brand is well regarded within our industry. 

We have also demonstrated our Value Driven approach in action through the funding of all transactions without the requirement to issue new equity and the efficient use of the debt markets. The strength of cash flow from Block 3/05, which has been optimised through our active management of crude liftings and a structured hedging policy, means we end the period in a net cash position.  Whilst the recent softening of crude pricing may reduce near-term asset cashflow, when combined with our strong balance sheet, it may present further opportunities through the likely acceleration of divestments at reasonable price points.  Afentra remains agile in its approach and is well positioned to deliver further value accretive transactions in 2025.

Focus on value creation

In summary, 2024 was yet another year of strategic progress that resulted in value creation for our shareholders and enhanced the value of our overall proposition by demonstrating the upside potential of our expanding asset base.  Our strategic focus for the current year is to support Sonangol on the continued delivery of the work programme for Block 3/05 which aims to enhance production, improve asset integrity and prepare for the next phase of workover and development drilling.  We continue to assess the scope to reduce the emissions profile of the asset and will begin to see positive trends in this regard as we ramp up production and commence various initiatives including gas utilisation.

The market dynamics in our industry continue to evolve and support our purpose in terms of facilitating a responsible industry transition.  We have established a strong foothold in a country that provides a positive fiscal environment and a portfolio of compelling opportunities in both the offshore and onshore areas.  We continue to strengthen our working relationship with key stakeholders in Angola and demonstrate our commitment to the long-term development of the upstream industry through our establishment of an office in Luanda and our partnering with local players.

I would like to thank all of our stakeholders, including Sonangol, ANPG, our partners, and of course our shareholders for their continued support.  Afentra remains committed to enhancing value for all of these stakeholders as we execute our well-defined growth strategy, and the Company is uniquely placed to leverage its stable growth platform to deliver the next stage of value creation.

Operations Review

Asset Summary

Afentra's enlarged asset footprint in Angola, both offshore and onshore provides a solid platform for material long-term organic and inorganic growth 

Increased exposure to world-class midlife assets, low-cost development and near-field and short-cycle exploration opportunities with significant upside potential

In 2024, Afentra completed its third transformative deal offshore Angola. The acquisition of additional non-operating interests from Azule Energy in Block 3/05 and Block 3/05A increased our interests to 30% and 21.33% respectively (an increase of 12% in Block 3/05 and 16% in Block 3/05A). . Providing Afentra with material exposure to these world-class mid-life producing assets that generate robust cashflows and provide near-term upside potential for organic growth as well as the opportunity to make an impactful reduction in emissions.

Onshore Angola, in July 2024 Afentra was awarded a 45% non-operated interest in the KON19 licence alongside Angolan companies ACREP (the Operator) and Enagol. Post-period end, in February 2025, the Company was also awarded a 45% non-operated interest in KON15 alongside Sonangol as Operator, further expanding our footprint onshore. This was signed on April 7^th 2025. Both licences are located in the proven, yet under-explored, onshore Kwanza basin. Entry into this basin, where 11 oilfields have been discovered, offers an opportunity for low-cost exploration and near-term development by applying fresh ideas and modern concepts to an area where no new technology has been applied for 40 years.

Fostering a close working relationship across the Joint Ventures

Since 2022 the Afentra team has developed a strong collaborative working relationship with Sonangol and the JV partners on Block 3/05 and Block 3/05A. The JV partners are aligned on making informed data driven decisions on field optimisation through the deployment of proven industry techniques and the latest technology, taking a phased approach to manage capital expenditure, with the aim being to cost effectively optimise and increase production while simultaneously reducing emissions.

Onshore, Afentra is also working closely with its JV partners on KON19 and post-period end on KON15 utilising technologies and techniques that the team have deployed successfully in other regions of Africa. For example, using basin-wide enhanced Full Tensor Gravity Gradiometry (eFTG) surveying to undertake a more comprehensive subsurface analysis of the largely unexplored onshore Kwanza basin.

Block 3/05 production increase and reserve replacement through phased long-term sustainable field extension activities

During 2024, Block 3/05 and Block 3/05A gross production averaged 21,111 bopd, a 5% increase from the prior year (2023: 20,180 bopd), with peaks exceeding 25,000 bopd. Over 40 light well interventions (LWIs during 2024 added 2,000 bopd, with a similar program planned for 2025. These LWIs and facility improvements drove a 140% reserve replacement since the last CPR, carried out in June 2023. Increased water injection will support the reservoir pressure which is expected to further enhance recovery factors and reduce emissions as a lower Gas Oil Ratio (GOR) reduces the need for gas flaring.

The Block 3/05 licence extension to 2040 and revised fiscal terms received in 2023 has allowed the JV partnership to strategically invest in infrastructure upgrades. At the end of 2024 the JV commenced a 3-year asset redevelopment plan that is designed to extend the field life, optimise and increase production, enable future development activities and reduce GHG emissions.

As part of the redevelopment plan, a planned 21-day maintenance shutdown was successfully conducted in October 2024. The shut-down specifically targeted making upgrades to the power equipment, and the metering systems for water and gas, improving reliability and enabling reliable emissions monitoring. The upgrades to the water injection system have resulted in year-end injection rates increasing to over 80,000 bwpd. Post-year end, Q1 2025 water injection rates have exceeded 100,000 bwpd. Further upgrades later in 2025 will increase available capacity up to 150,000 bwpd. The newly installed gas meters will pave the way for the JV to progress a field-wide gas export plan.

A further shutdown is planned for 2025 in accordance with the asset redevelopment plans to extend the field life and to ready the infrastructure for future increases in production. Future development activities include infill drilling, tie-backs of nearby satellite discoveries, and near-field exploration within Blocks 3/05 and 3/05A. The JV partnership is actively evaluating several opportunities, aiming to develop value-generating appraisal and development well proposals with the potential to add reserves within the 2026-2027 timeframe.

Near-term investment for long-term growth

Given the age and scale of the Block 3/05 infrastructure, the 2024 base operating expense associated with these assets is attractive at $23/bbl (and is expected to be similar in 2025). Going forward, production increases through further optimisation and near-field developments will act to further reduce the opex/bbl as near-term investment delivers long-term growth and value. Investment of $150 million gross (net: $39 million^)[2], including $40 million gross of life extension costs, was invested in 2024 in the first year of the 3-year asset redevelopment plan. Gross investment in 2025 will increase to around $180 million (net: $54 million^)[3]with a focus on asset integrity to continue to support our long-term increased production outlook. The three-year asset redevelopment plan is expected to be completed during 2027.

Angola: A prime location for portfolio expansion and a platform for wider growth

Angola has a compelling investment environment, supported by the Angolan government's stable fiscal regime and its commitment to enacting fiscal and regulatory reforms designed to encourage investment into its domestic oil and gas sector.

We view Angola as a core market and a key part of our growth strategy. An important part of our strategy is to actively collaborate with local partners like Sonangol, the NOC, and local Angolan companies such as ACREP, Etu Energias and Enagol to work together to maximise in-country value creation. The Angolan government, supported by the regulator ANPG's proactive and collaborative approach is fostering an environment where Afentra can deliver mutually beneficial outcomes for all stakeholders.

We are proud to be contributing to Angola's development through knowledge sharing and job creation, reflecting our commitment to having both a positive socioeconomic and environmental impact. With decades of experience working in Africa, we are deeply committed to positive community impact and local content development. In 2024, Afentra invested $150,000 in the HALO trust (for the year 2024 and 2025), an international landmine clearing organisation that has been active in Angola for over 30 years and has cleared over 120,000 landmines in this time.

Continued focus on enhancing asset value

Based on the success of the 2023 and 2024 Block 3/05 LWI program, coupled with the infrastructure upgrades resulting in increased water injection rates, a further 40 LWIs are planned during 2025. Going forward heavy workovers, artificial lift solutions, infill drilling, development of appraised discoveries and near-field exploration will provide the opportunity to potentially more than double production in the medium term.

Our enlarged Angolan asset base, both offshore and onshore, means that Afentra is well-positioned for long-term growth. Our commitment to Angola, demonstrated through strategic investments, collaborative partnerships, and a focus on sustainable development, ensures we are not only maximising value for our shareholders but also contributing to the economic and social well-being of the country. We look forward to continuing our journey in Angola, unlocking its vast potential and delivering lasting benefits for all stakeholders.

Angola Asset Summary

Block 3/05

Offshore, Angola, Afentra has a 30% non-operated interest in the producing Block 3/05 and a 21.33% non-operated interest in the adjacent development Block 3/05A. The mid-life fields that reside within the Block 3/05 licence together represent a significant underdeveloped asset with substantial potential to replace reserves, increase production and reduce emissions.

World-class shallow water assets with significant upside potential

Situated 37 km offshore Angola in 40-100 metres water depth, Block 3/05 comprises a portfolio of 8 mid-life producing fields: - Palanca, Impala, Impala SE, Bufalo, Pacassa, Pambi, Cobo, and Oomba. Spanning an area of around 40km by 15km, the licence contains extensive field infrastructure with 157 wells (currently 45 producing and 17 injecting water) and 17 installations, including the Palanca floating storage and offloading (FSO) vessel for oil export.

The fields, which produce from the prolific fractured Albian Pinda carbonate reservoir section, were discovered by Elf Petroleum (now TotalEnergies) in the early 1980s. They were developed using fixed platforms with oil production commencing in 1985. Earlier in the field life waterflooding was successfully implemented to enhance recovery, lowering uncertainty and supporting production forecasts for the assets. Since assuming Operatorship in 2005, Sonangol has concentrated on sustaining production through workovers and asset integrity maintenance.

JV aligned on field life extension and optimisation approach

The JV partnership on Block 3/05 and Block 3/05A are aligned on making data-driven decisions on field optimisation, using proven techniques and technology in a phased approach to cost-effectively upgrade the facilities, increase production, reduce emissions, and unlock the significant potential of these mid-life assets.

The extension of the licence to 2040 and improved fiscal terms, received during 2023, has unlocked investment in Life Extension (LIFEX) activities including increasing production. This includes facility upgrades, production optimisation activities through LWI techniques, and going forward plans are being progressed for subsurface optimisation with rig activities, and the development of surrounding discoveries. The upgrades to the asset integrity of the existing infrastructure will facilitate their use in the development of the numerous discoveries surrounding the existing producing fields.

Early field optimisation and life extension activities demonstrating upside field potential

We were pleased to report that in 2024 field production from Block 3/05 and Block 3/05A increased by 5% to an average of 21,111 bopd. This is the second year of consecutive production growth Strong operational performance post-shutdown positively impacted production and water injection rates: Gross average oil production from only Block 3/05 reached an average of 23,133 bopd (net: 6940 bopd) in December 2024.

The material uplift in production by the end of 2024, and the reserve replacement of 140% (since June 2023) announced post-period end can be attributed to the impact over the 18-month period of the LWI's and increased water injection coupled with material progress on facility recovery to process higher levels of production.

ESG embedded into our activities

Working closely with our JV partners, we aim to balance the socioeconomic benefits that come from production while lowering the environmental impact through targeted initiatives. The 2024 planned maintenance shutdown allowed for the installation of gas metering which will allow a baseline understanding of flare rates, composition and resulting emissions. The data from these new meters will inform the development of a holistic gas management plan to lower emissions through reduced flaring and through utilisation of gas for export.

Block 3/05 non-operated interest

Block 3/05 is operated by Sonangol through a JV partnership under a PSA. In 2023, the Block 3/05 PSA was extended to 2040 with enhanced fiscal terms.

Block 3/05 Work Program

Key achievements on the fields during the year have included achieving zero Lost Time Incidents (LTIs) in 2024 and maintaining the same 87% facilities uptime as in 2023. The JV is making near-term investments with targeted life extension activities, taking a long-term strategic approach to investing in the field to deliver growth and value into the 2030s and beyond.

Futureproofing infrastructure to increase production and reduce emissions

During 2024 the JV commenced a 3-year asset redevelopment plan to extend the field life, optimise and increase production, and reduce GHG emissions, this included the recertification of the Palanca FSO. The recertification of the vessel will lead to no dry dock before 2030. These efforts align with the extended licence for Block 3/05, which now runs through to 2040. Key infrastructure upgrades included enhancements to compressors, power generation systems, and flowlines.

Afentra and the JV are fully aligned on taking a phased and targeted approach to life extension  capital expenditure. This has started with stabilising and sustaining current production, optimising the existing well stock, and will ultimately lead to the next stage of future development through infill drilling and tie-backs of nearby satellite fields.

Stabilise and Sustain Production

The "Stabilise and Sustain" programme, which included the planned 21-day maintenance shutdown in October 2024 focused on four key areas: asset integrity, water management, power systems and gas metering. By upgrading these key areas, we are laying the groundwork for production to increase and a reduction in emissions.

Ramping up water injection

For the JV, achieving higher and more stable injection rates is a key objective, as it will continue to positively impact oil production in the medium term as production rates respond to reservoir pressure increases. During 2024, there was a significant investment in water injection upgrades across the fields with new filters, pumps and meters installed. The implemented upgrades have resulted in an immediate performance improvement, with year-end injection rates at up to 80,000 bwpd. The fields now have significantly higher injection capacity compared to 2022, and the field is now prepared for a planned injection rate ramp-up in 2025 to above 100,000 bwpd using two pumps with a third scheduled to come online later in 2025 resulting in up to 150,000 bwpd of available capacity. Post-period end water injection rates have exceeded 100,000 bwpd.

Light Well Interventions

The LWI campaign carried out during 2024, in continuation of the program that commenced in 2023, involved successfully re-entering 40 wells to carry out matrix and tubing washes, perform water shut offs and re-perforations. The LWIs have continued to demonstrate the benefits and potential of low cost well interventions on these fields with an average gain of around 130 bopd per intervention and with an average payback of less than six weeks.

Gas lift optimisation was carried out in 2024, with seven well improvements and the focus has now shifted to gas compression and further optimisation of the intra-field gas network. Gas meters have also now been installed on the flares, providing accurate measurement and an accurate baseline to measure emission reductions.

Holistic asset gas management

In 2024, significant progress was made in implementing the holistic gas management plan which aims to lower emissions by reducing flaring, mitigating fugitive emissions and looking at gas export options. Three factors are contributing to reduced gas flaring and emissions: increased water injection will lower the GOR, a recent drone survey conducted late 2023 has informed a fugitive emissions mitigation strategy, and new gas meters will enable more accurate emissions monitoring and the development of gas export plans.

Shift to gas and network optimisation, heavy workovers and drilling for 2025-2027

Looking ahead, the focus is shifting to gas compression and network optimisation in 2025, a heavy workover program ,  and preparing for rig-related life extension activities in 2026. In 2024 there was also investment in long lead items to enable future rig related activity.

Collaborative JV workshops have identified a series of low cost and low risk workovers from the extensive inventory of wells currently offline. Initial focus for heavy workovers will be on the Palanca and Impala fields where a number of well reactivation and ESP opportunities have been selected for high grading. Here there is a significant oil in place which is not being effectively accessed and recovered.

There is a significant opportunity to increase production through infill drilling, with no infill wells drilled for over 10 years, and over 20 targets identified. Strong candidates are wells with lower GOR  such as at Pacassa SW or infield wells where existing infrastructure can be used to rapidly bring them onto production. The JV partners are working collaboratively through the selection of infill candidates from Pacassa, Palanca, Impala SE, Buffalo, Cobo, Pambi and Impala fields, with an initial phase of drilling planned to start in 2026, with new infill wells potentially adding 500-2000 bopd of production per well.

Near-field Developments and Exploration

Near-field exploration and development within both Block 3/05 and 3/05A offer significant opportunities to increase oil production further, with the potential for discoveries to hold over 300 mmbo (3/05A) and 100-200 mmbo (3/05). Satellite discoveries have the potential to deliver up to 10,000 bopd through phased development.

Case Study: Afentra and JV technical collaboration drive early production gains from LWIs

Since 2022, Afentra's technical team has been working collaboratively with the JV partnership to advance production optimisation projects as well as longer term planning for field extension and further infield development activities. 

Before joining the licence, our technical team identified the potential for low-cost light well intervention (LWI) workovers to rapidly boost production. Evaluating available wireline log data, historical well completion data, and production history, the team has worked together with the Operator and JV partners to identify and rank LWI candidates.

Through interactive workshops in Luanda, Afentra has facilitated strong collaboration with Sonangol and the JV partners, leveraging our team's extensive geoscience and well engineering experience to develop detailed technical proposals. The proposals encompass a range of intervention options, including acid washes, matrix washes, gas lift valve change-outs, and reperforations to restimulate intervals and to access previously untapped oil zones.

The LWI program has yielded impressive results. In 2023, interventions delivered an additional 4,000 bopd, followed by an additional 2,000 bopd in 2024. These early successes will inform and drive continued LWI programs in subsequent years. 

Furthermore, the JV's collaborative efforts have increased the number of active production wells from 42 to 45 and injection wells from 15 to 17, demonstrating a joint commitment to optimising field performance and maximising the value of the asset. With 95 inactive wells remaining, the potential for future interventions remains substantial.

Block 3/05A

Significant low cost near-field development potential

Adjacent to Block 3/05, Block 3/05A houses the undeveloped Punja, Caco and Gazela discoveries with an estimated in-place resource of 300 million barrels. Afentra estimates gross 2C recoverable resources at 33 million barrels.

The Gazela field, commenced production in 2015, with approximately 2.4 mmbo recovered prior to a wellbore shutdown in 2017. Production was restored in March 2023 with the Gazela-101 well averaging around 1,248 bopd gross during 2024. This extended production test is helping to establish the long-term resource potential and appropriate development strategy. Subsurface mapping has been completed on the Caco and Gazela fault compartments to identify future potential production or injection wells. These will now be ranked alongside other rig related opportunities for selection in the potential 2026 / 2027 drilling campaign.

Development concepts actively being progressed

Given the high gas oil ratio of the Punja field reservoirs, an integrated gas management plan across both Blocks 3/05A and 3/05 is essential to optimise the responsible development of these oil and gas resources. In line with our stated environmental commitments, all alternatives to flaring excess gas from additional developments will be evaluated with the JV before proceeding to sanction future projects. There are a number of zero routine flaring options that will be evaluated, including commercial export of excess gas via the ALNG network which is located in close proximity to existing infrastructure or gas injection into existing fields. Both options will require review and a potential upgrade of the existing compression infrastructure. 

The JV partnership will be progressing the next steps to both Punja and Caco-Gazela in a phased approach to gain appraisal data, reduce uncertainty and generate cash flow through monetising early production. A number of development concepts will be screened and ranked in order to reach an optimised FID in the near term.

The Block 3/05A PSA expires in 2035, having commenced in 2015 and could be extended if production is still ongoing. The Punja undeveloped discovery received marginal field terms in 2024 enhancing the commercial value of this block.

Block 3/05A non-operated interest

Block 3/05A is operated by Sonangol through a JV partnership under a PSA.

Onshore Angola

Blocks KON15 and KON19 (awarded post-period end) offer low-cost near-term exploration potential

Onshore Angola, Afentra was awarded a 45% non-operated interest in both KON19 in July 2024, and post-period end a 45% non-operated interest in KON15. Both licences are in the proven yet under-explored onshore Kwanza basin. Entry into this basin, where 11 oilfields have been discovered, offers a value driven strategic opportunity for near-term and low-cost exploration in a proven basin by applying fresh ideas and modern concepts to an area where no new technology has been applied for 40 years.

KON15 and KON19 are located adjacent to the legacy Tobias and Galinda oil fields and offer significant potential within Angola's prospective post-salt and pre-salt formations. Leveraging existing data, these blocks can be quickly explored and appraised, potentially leading to rapid development and production. These licences will expand Afentra's footprint in this attractive Angolan market by diversifying our portfolio which is principally focused on low cost, long-life stable production and low-risk development assets.

Under-explored proven hydrocarbon basin

The onshore Kwanza basin covers 25,000 km2 and is an underexplored, over-looked proven hydrocarbon basin that has numerous oil fields and discoveries dating back to 1955. The basin produced over 15,000 bopd in the 1960's and 1970's from post-salt traps. Onshore activity declined and ceased during the instability of the Angolan civil war after which the focus was offshore oil and gas field development.

Both KON15 and KON19 blocks were high graded by Afentra in 2023 as they have good signs of a working petroleum system and contain wells that were drilled on salt structures with light oil recovered to surface in one and oil shows in others from post and pre-salt reservoirs. We continue to evaluate additional opportunities utilising technologies and techniques that the team have successfully deployed in other regions of Africa.

For example, although the full work program is yet to be finalised, the initial phase of a basin-wide enhanced Full Tensor Gravity Gradiometry (eFTG) survey, launched in August 2024, has been completed for KON19, with the remaining KON15 phase being completed in 2025. This advanced eFTG technology will facilitate a more comprehensive subsurface analysis of the 25,000km² onshore basin, a largely unexplored region in recent decades and identify prospective regions.

Block KON15 

Block KON19 

Angola -  Block 23 

Afentra also holds a 40% non-operated interest in Block 23, a deepwater exploration licence with a proven hydrocarbon potential and no outstanding work commitment. In 2024 the new Operator Namcor was announced.

Block 23 is a 5,000 km2 exploration and appraisal block located in the offshore section of the Kwanza basin in water depths ranging from 600 to 1,600 meters, with a proven working petroleum system, and is in proximity to TotalEnergies Kaminho future deepwater development. Whilst this large block is covered by modern 2D and 3D seismic data sets, with no outstanding work commitments remaining, much of the block remains under-explored.

Block 23 non-operated interests

Somaliland

Odewayne Block

Afentra also has a 34% carried interest in the onshore Odewayne Block onshore southwestern Somaliland. The Block is an unexplored frontier acreage position covering 22,840km2 offering the opportunity to explore an undrilled onshore rift basin in Africa.

Financial Review

In 2024 we continued to grow our asset base in Angola as we completed our third acquisition on Block 3/05 and Block 3/05A, increasing our interest to 30% and 21.33%, respectively, as well as accessing the onshore Kwanza basin in July by securing a 45% non-operated interest in Block KON19 alongside local companies ACREP (Operator with 45% interest) and Enagol (10%). During the year we also established a presence in Luanda, Angola, through the appointment of a Country Manager in Luanda who opened our local office in Q4. Operationally, we successfully completed four crude oil liftings during the year, generating $180.9 million of revenue, and anticipate a further five liftings in 2025.

Our financial position has undergone a significant transformation in 2024, demonstrating the value generated through strategic acquisitions, stable asset performance and effective management. We ended 2024 with $54.8 million in cash ($19.6 million at 31 December 2023), inclusive of restricted cash balances, achieving an end of year net cash position of $12.6 million (Net debt $12.3 million at 31 December 2023).

We continue to manage our exposure to oil price risk through our hedging strategy and, during 2024, hedged 70% of sales volumes through a combination of put options and collar structures. The hedge portfolio consisted of $70 to $80 per barrel put options, covering 70% of sales volumes, and $90 per barrel call options, covering 29% of sales volumes. For 2025, we have hedged approximately 68% of estimated sales volumes. Our 2025 hedge portfolio consists of a combination of put options with floors ranging between $60 and $65 per barrel covering 68% of estimated sales volumes and call options with caps ranging from $80 to $89 per barrel, covering 44% of estimated sales volumes. The company continues to explore and to evaluate other hedge products in the market consistent with its hedging policy.

In line with Afentra's commitment to avoiding shareholder dilution, the Company has elected to satisfy vested options under the Founders' Share Plan (FSP) through market purchases via an existing Employee Share Benefit Trust (Trust) rather than issuing new Ordinary Shares. Subsequently, the Trust purchased 381,719 shares on the open market at an average price of ~41p. Furthermore, the Trust will continue with the share purchase programme to satisfy the requirements of the employee LTIP and final 2026 FSP vesting. Subject to certain purchase criteria to be agreed with the Trust, the Trust is expected to purchase of up to 6.5 million Ordinary Shares over the rest of 2025/Q1 2026. Full details of the FSP scheme are provided in the Remuneration Committee Report of the Annual Report.

For 2025, our focus on M&A remains unchanged as we continue to seek to build our portfolio via value accretive opportunities in Angola, as well as in other jurisdictions in the West Africa region.  In February of this year, we secured our interest in the onshore Block KON15, thereby securing our second onshore asset in Angola. On asset management, we will look to develop our office presence in Luanda and will continue to work constructively with the Operator and our JV partners on Block 3/05 and Block 3/05A to ensure continued safe operations as well as seeking to develop value accretive opportunities in both existing operations as well as new projects.

Non-IFRS measures

The Group uses certain measures of performance that are not specifically defined under IFRS or other generally accepted accounting principles. EBITDAX (Adjusted) represents earnings before interest, taxation, depreciation, total depletion and amortisation, impairment and expected credit loss allowances, share-based payments, provisions, and pre-licence expenditure. Additionally, in any given period, the Company may have significant, unusual or non-recurring items which may be excluded from EBITDAX (Adjusted) for that period. When applicable, these items are fully disclosed and incorporated into the reconciliation provided below.

EBITDAX (Adjusted) is a non-IFRS financial measure. The Company believes that this non-IFRS financial measure assists investors by excluding the potentially disparate effects between periods of the adjustments specified.

EBITDAX (Adjusted) should not be considered as an alternative to Net income or any other indicator of Afentra plc's performance calculated in accordance with IFRS. Because the definition of EBITDAX (Adjusted) may vary among companies and industries, it may not be comparable to other similarly titled measures used by other companies.

Income Statement

Average production from Afentra's interests in Blocks 3/05 and 3/05A increased to 6,229 bopd from 3,509 bopd as a result of the completion of the Azule transaction in May 2024, where Afentra acquired an additional 12% and 16% in Blocks 3/05 and 3/05A, respectively.

2024 revenue, net of off-take fees, of $180.9 million (2023: $26.4 million) from four liftings completed during the year at an average realised price of $82.2/bbl.

Cost of sales during the year totalled $96.7 million (2023: $12.6 million); a full reconciliation is provided in the notes to the accounts (Note 4).

The profit from operations for 2024 was $71.9 million (2023: $2.4 million) as a result of the four liftings in 2024 and increased stake in each block. During the year, net administrative expenditure increased slightly to $12.3 million (2023: $11.5 million).

Finance income (interest on deposits) of $0.1 million (2023: $0.2 million) was received in the year. Finance costs increased during 2024 to $9.0 million (2023: $3.5 million), primarily due to additional drawdowns on the RBL and working capital facilities. Further detail is provided in the notes to the accounts (Note 7).

The profit after tax for the year was $49.8 million (2023: loss after tax $2.7 million):

Group adjusted EBITDAX totalled $90.9 million (2023: $11.1 million):

[1] Total depletion on oil and gas assets in 2024 is the depletion charged to profit and loss ($12.1 million) and absorbed in inventory ($0.2 million). Depreciation on other assets totalled $0.3 million.

The basic and diluted earnings per share for the year was 22.2 cents (2023: 1.2 cents loss) and 20.1 cents (2023: 1.2 cents loss) respectively. No dividend is proposed to be paid for the year ended 31 December 2024 (2023: nil).

Statement of financial position

At the end of 2024, non-current assets totalled $150.2 million (2023: $97.0 million, as restated). The increase is primarily due the further acquisition from Azule of the Company's interests in Block 3/05 and Block 3/05A ($38.3 million) as well as capital expenditure on the two blocks ($26.1 million), offset by depreciation ($12.6 million). Further information can be found in Note 11 to the Annual Financial Statements.

At the end of 2024, current assets stood at $73.9 million (2023: $43.7 million, as restated) including cash and cash equivalents of $46.9 million (2023: $14.7 million), restricted funds of $7.9 million (2023: $4.9 million), trade and other receivables of $11.4 million (2023: $10.7 million as restated), and inventories of $7.5 million (2023: $13.4 million).

At the end of 2024, current liabilities were $71.1 million (2023: $45.9 million as restated) including trade and other payables of $52.9 million (2023: $34.4 million as restated), borrowings of $11.3 million (2023: $6.8 million), contingent consideration of $5.5 million (2023: $4.6 million), and derivative liabilities of $1.3 million (2023: nil). The increase in trade and other payables is related to the Company's increased share of Joint Venture working capital items (Block 3/05 and Block 3/05A).

At the end of 2024, non-current liabilities were $56.9 million (2023: $46.9 million, as restated), comprised primarily of borrowings of $30.1 million (2023: 25.0 million) and contingent consideration of $24.4 million (2023: $21.9 million), and deferred tax of $1.7 million (2023: nil). The increase is primarily due to additional drawdowns on the RBL and working capital facilities during the year. Further information can be found in Note 19.

The Group's net assets increased from $48.0 million at the end of 2023 to $96.1 million as at 31 December 2024, primarily reflecting profits earned during the year.

Cash flow

Net cash inflow from operating activities totalled $85.6 million (2023: $12.3 million). The increase is primarily due to a full year activity on Blocks 3/05 and 3/05A, compounded by additional equity acquisitions relating to these blocks.

Net cash used in investing activities increased to $53.6 million from $45.9 million in 2023. Additions to property plant and equipment was offset by lower asset acquisitions and contingent consideration payments made during the year.

Net cash generated from financing activities totalled $0.1 million compared to $28.0 million in 2023 due to repayments of debt principal and interest.

Accounting Standards

The Group has reported its 2024 and 2023 full year accounts in accordance with UK adopted international accounting standards.

Cautionary statement

This financial report contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the oil and gas exploration and production business. Whilst the Directors believe the expectation reflected herein to be reasonable in light of the information available up to the time of their approval of this report, the actual outcome may be materially different owing to factors either beyond the Group's control or otherwise within the Group's control but, for example, owing to a change of plan or strategy. Accordingly, no reliance may be placed on the forward-looking statements.

Anastasia Deulina - Chief Financial Officer