Afentra plc ('Afentra' or the 'Company'), the upstream oil and gas company focused on acquiring production and development assets in Africa, is pleased to announce its half year results for the six months ended 30 June 2025 (the 'Period' or 'H1 2025').
H1 2025 Summary
Key Highlights
- Block 3/24 (Post-Period): HoT signed with ANPG; Afentra to operate with 40% interest, marking first offshore operatorship
- Block 3/05 Acquisition: SPA signed with Etu Energias for additional interests in Blocks 3/05 and 3/05A
- Kwanza Onshore Expansion: KON15 license awarded; KON4 license contract initialled
- H1 2025 Net Average Production: 6,348 bopd
- Crude Oil Sales & Revenue
o 0.7 mmbbls sold at $72/bbl average price, generating $52.0 million revenue
o 0.5 mmbbls sold at $70/bbl post period (1st July), additional $35.4 million receivable1
- Borrowings: reduced to $36.3 million, Net Debt of $15.5 million (Net Cash $19.9 million post 1st July lifting)
- 2P Reserve Replacement: >140% over 18-month period; demonstrating reserve growth potential
Financial Highlights
- Revenue of $52.0 million
- Cash resources as at 30 June 2025 of $21.6 million; net debt at 30 June 2025 of $15.5 million
- Borrowings at 30 June 2025: $36.3 million; total debt / annualised adjusted EBITDAX 0.7x
- Adjusted EBITDAX of $27.9 million and profit after tax of $5.7 million
- Two liftings during the period totalling 0.7 million bbls; average price of $72.2/bbl
Operational Highlights
- Gross average combined production for H1 2025 for Block 3/05 and 3/05A was ~21,350 bopd (H1 2024: 22,722 bopd), with rates from late June 2025 exceeding 23,000 bopd following an acceleration of light well intervention activities
- Reserves and resources have materially increased since the last CPR in June 2023, with a 140% reserve replacement ratio, offsetting gross production of ~11 mmbo over the 18-month period to 31 December 2024, highlighting the long-term potential of the asset
- Multi-year redevelopment plan remains on track targeting increased recovery and production growth. Key workstreams progressed in H1 include:
o Water injection ramp-up continued, averaging 35,000 bwpd, with upgrades targeting around 85,000 bwpd consistently by year-end. Maximum injection rates in excess of 100,000 bwpd in H1 2025
o 10 light well interventions delivered to date to underpin production performance
o Infrastructure upgrades across power systems, cranes, subsea lines and risers to enhance safety, reliability, uptime and protect future value
o Platform surveys and access preparation to support rig mobilisation and drilling in 2026
- Asset uptime remained stable throughout the period with no major periods of downtime. Opex continues to track around $23/bbl and we remain on track to deliver the planned $180 million (Net: $54 million) capital investment programme
- Sale & Purchase Agreement signed with Etu Energias in June for an additional 5% net interest in Block 3/05 and 6.67% net interest in Block 3/05A. Completion is expected in late H2 2025
- Onshore Kwanza basin, Block KON15 license formally awarded in February and the KON4 Risk Service Contract was initialled in June, confirming Afentra as operator, with completion of the award expected in Q4 2025
Post Period-End
- Block 3/24 (Offshore Lower Congo Basin): Signed Heads of Terms with ANPG; Afentra to operate with 40% interest. Government approval expected in Q4 2025
- Production: Gross production from Blocks 3/05 and 3/05A during July and August averaged 22,172 bopd (Net: 6,583 bopd)
- Well Interventions: further 8 light well interventions completed in July and August to support ongoing base production
- Crude Oil Sales & Stock position
o Third crude lifting completed on 1 July 2025 (~500,000 bbls at $70/bbl), generating H2 revenue of $35.4 million
o Three liftings completed to date in 2025, totalling 1.2 million bbls, with an average realised price of $71.3/bbl
o Stock position at end-August was 128,745 bbls
- Cash: The lifting on 1 July 2025 resulted in additional cash of $35.4 million received in July
- Debt repayment: Early semi-annual repayment made on the RBL facility in August, reducing the outstanding balance to $31.5 million
Near-term Catalysts
- Next crude cargo lifting (~400,000 bbls) expected late September 2025
- Planned maintenance rescheduled to 2026, reflecting stable operations
- Completion of Etu transaction expected in Q4 2025
- KON4 award expected in Q4 2025
- Block 3/24 award expected in Q4 2025
- 2026 drilling and workover programme under preparation
Paul McDade, Chief Executive Officer, Afentra plc commented:
"Afentra has made meaningful strategic progress in the first half of 2025, expanding our non-operated positions and being awarded our first operated acreage in Angola. The entry into Block 3/24 represents an important milestone as our first offshore operatorship, further strengthening our presence alongside the core assets in Blocks 3/05 and 3/05A. At the same time, our onshore Kwanza basin portfolio has advanced with the award of KON15 and initialling of the KON4 contract, adding near-term redevelopment and exploration potential.
Together, these developments create a balanced portfolio of production, redevelopment and exploration opportunities that underpin our strategy of building a resilient, cash-generative business with material growth potential. Looking ahead, we remain focused on executing our near-term catalysts and positioning Afentra to deliver sustainable value for shareholders."
Supporting Presentation
A short presentation has been uploaded to Afentra's website - please view here: https://wp-afentra-2025.s3.eu-west-2.amazonaws.com/media/2025/09/2025.09-Afentra-HY-2025-Results-Presentation.pdf
CEO Statement
I'm pleased to provide the following statement to accompany the Half Year Results for the period ending 30 June 2025. Through the first half of the year, Afentra has continued to make strong progress in executing its value driven growth strategy. The year to date has seen a further expansion of our diversified portfolio as we leverage our growing recognition as a credible industry partner within Angola. The period has also been defined by stable production performance from our cornerstone asset Block 3/05, which continues to respond positively to the ongoing re-development programme as demonstrated by the exceptional reserve replacement.
The expansion of our Angolan portfolio during the period is a significant development and provides more diversification, materiality and optionality for phased growth. Afentra took the opportunity to acquire from Etu Energias, alongside our existing partner Maurel & Prom, additional interests (net 5% in Block 3/05 and net 6.67% in Block 3/05A), for an initial net consideration of US$23 million. This transaction represents a further value focused step in Afentra's strategy to build a high-quality portfolio of cash-generative production and development assets, offering additional exposure to our high-margin, long-life producing and development assets in Blocks 3/05 and 3/05A. Similar to our previous transactions on this asset, we maintained our focus on value creation using disciplined transaction structures, combining modest upfront consideration with success-based contingent payments aligned to oil price and asset performance. The effective date of this transaction, backdated to 31 December 2023, means a reduced cash outlay will be required when the transaction completes, further highlighting the value accretive nature of this deal and Afentra's ability to execute smart deal making.
During the period, Afentra also expanded its onshore Kwanza basin footprint through the formal approval and award in February of the KON15 license. In June, the Company announced that it had initialled a Risk Service Contract ("RSC") for Block KON4. This award provided the first operatorship for Afentra, but more importantly it provided the Company with 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. The historical production from KON4, which achieved peak production of 12,000 bopd from the Quenguela Norte field before it was shut-in and abandoned in 1999, presents an opportunity to unlock significant value through the reactivation of legacy oil fields, supported by modern technology and re-development techniques that have advanced considerably since the fields were last in production decades ago.
The onshore portfolio assembled by Afentra offers a complementary portfolio with exposure to a diverse range of play types - across both post-salt and pre-salt petroleum systems - as well as opportunities to appraise and re-develop multiple discovered but abandoned oil fields. As we await completion of the formal approval process for KON4, we are in discussion with our partners to undertake a review of the block's existing oil fields and the potential for early development opportunities. In addition, we will be bringing our significant experience in the use of eFTG data, which is currently being acquired across the basin, to understand the full exploration potential of our onshore portfolio.
As expanded within the accompanying operations review, the cornerstone asset Block 3/05 continues to perform in line with expectation. The multi-year redevelopment plan being undertaken by the partners remains on track targeting increased recovery and production growth. The asset achieved gross average production of ~21,350 bopd through the period with net production figure of 6,348 bopd - noting that this net figure increases by over 1,000 bopd of backdated production upon completion of the Etu transaction. Asset uptime remained stable throughout the period with no major periods of downtime. Opex continues to track around $23/bbl and we remain on track to deliver the planned $180 million (Net: $54 million) capital investment programme.
Strict capital discipline has been a priority for Afentra since inception and we are pleased to retain a strong balance sheet which is supporting our self-funded growth. Following the cargo lift, post period on 1 July, Afentra had net cash of $19.9 million ensuring ample liquidity to maintain our capex programme, consider inorganic growth opportunities and navigate the volatile markets currently being experienced by our industry. Our sound financial and risk management provides appropriate visibility on cash flow and our finance team have done an excellent job of using successful hedging strategies to protect the pricing downside through the remainder of the year, with approximately 70% of 2025 production hedged. Our oil marketing programme ensured we achieved an average realised price for crude sales of approximately $72/bbl in the first half - a premium of $1.19/bbl over the average Brent price of $70.81/bbl in H1 2025 demonstrating the effectiveness of our approach.
To conclude, the first half of the year has seen Afentra make strategic progress in terms of solid operational performance, expansion of the portfolio and maintaining financial strength. Our early mover position and status as technical partner in Angola has enabled the Company to put together a compelling portfolio through which we intend to deliver long-term sustainable growth.
Operations Summary
Offshore Blocks
Block 3/05 (30%)
Operational progress remained strong on Block 3/05 in H1 2025, with the fields responding positively to the multi-year redevelopment plan. The programme remains on track to deliver increased recovery and production growth. Average gross production for the period on Block 3/05 was ~20,691 bopd (Net: 6,207 bopd).
By the end of June, 10 light well interventions (LWIs) had been completed, with 8 more delivered in July and August to underpin production performance. Around 30 further interventions are planned between September and December 2025. Water injection ramp-up continued, averaging 35,000 bwpd, with a second pump being commissioned and delivering a total of ~100,00bwpd when online. The overall system upgrades continue to target 85,000 bwpd consistently by year-end.
In parallel, infrastructure upgrades across power systems, cranes, subsea lines and risers continued to enhance safety, reliability, uptime and protect future value. Asset uptime has remained stable with no major periods of downtime. Opex is tracking around $23/bbl, and we remain on track to deliver the planned $180 million (Net: $54 million) capital investment programme.
Block 3/05A (21.33%)
Production from the Gazela field continued through H1 2025, averaging 663 bopd (Net: 141 bopd). A light well intervention on the well during the period recovered production back to levels of ~800bopd, supporting ongoing efforts to define the fields long-term resource potential and optimal development strategy.
Blocks 3/05 and 3/05A offer significant organic growth potential for Afentra, underpinned by a substantial resource base and material upside.
Block 3/05 offers substantial potential to replace reserves, increase production and reduce the emissions profile by optimising existing wells and infrastructure, completing workover activity, and drilling infill wells. For Block 3/05A, future activities under evaluation may include additional development wells and infrastructure upgrades to unlock the value of significant discoveries. We are currently actively assessing development options, including strategies to optimise and manage associated gas.
The JV partnership continues to progress planning for future workovers, ESP installations and the selection of potential drilling candidates for future years through joint venture development workshops, with a target for rig mobilisation in 1H 2026.
Post period end - Block 3/24
In September, Afentra announced that it had signed a Heads of Terms with ANPG for offshore Block 3/24. Afentra will be operator with a 40% equity interest, alongside Maurel & Prom (40%) and Sonangol (20%) and Government approval is expected before year-end.
Block 3/24 covers 545 km2 and lies in shallow water adjacent to Afentra's existing producing oil fields and undeveloped discoveries in Blocks 3/05 and 3/05A. The block adds five further discoveries - Palanca North East, Quissama, Goulongo, Cefo and Kuma - all with the same Pinda reservoir as the existing Block 3/05 oil fields. In addition, the block contains the previously developed Canuku field cluster, which historically produced up to 12,000 bopd. These discoveries and past-producing assets offer a significant opportunity to apply modern technology to deliver short-cycle, low-cost developments tied back to the existing infrastructure in Block 3/05. A number of pre- and post-salt exploration prospects have also been identified on the existing 3D seismic coverage.
Onshore Kwanza Basin
KON4, KON15 and KON19
During the first half of 2025 we achieved key strategic milestones in our onshore Kwanza basin growth plan: the KON15 license was formally awarded in February by Presidential Decree, securing a 45% non-operated interest, and in June the KON4 Risk Service Contract ("RSC") was initialed, confirming Afentra as the operator with a 35% working interest. Together with the KON19 license, awarded in July (45% non-operated interest), the blocks offer both short-cycle, low-cost production opportunities linked to field redevelopment and low-cost near-term exploration potential. Notably, KON4 includes the Quenguela Norte field - the largest onshore discovery to date - estimated to hold over 200 mmbbls of discovered oil in place.
In KON4, the joint venture has held an initial workshop to align on eFTG survey scope and resolution with acquisition and interpretation targeted for end-2025. Field reconnaissance has been completed to assess infrastructure, accessibility and community landscape. The integration of historic data and subsurface modelling is progressing to identify redevelopment focus areas, with the eFTG, legacy seismic and well data to be fully integrated to update the subsurface model and play analysis. This will be followed by planning future well re-entry and 2D seismic acquisition, including environmental permitting and early-stage vendor engagement.
In KON15 and KON19, joint venture technical workshops have been held to review legacy well data and refine subsurface understanding, with site visits made and partner alignment achieved for future 2D seismic acquisition planning. The eFTG survey has been completed over KON19, which will guide the future 2D seismic survey design and further improve the subsurface understanding. The joint ventures are now progressing the eFTG interpretation and preparing for the environmental and regulatory process to receive approvals for the 2D seismic acquisition which will lead on to the future prospect definition and exploration well planning.
KON4, KON15 and KON19 are all located in the proven yet under-explored onshore Kwanza basin. Entry into this basin, where 11 oil fields have been discovered, offers a value-driven strategic opportunity for near-term developments 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.
Block 23 (40%):
Block 23 is a 5,000 km2 exploration and appraisal block located in the offshore Kwanza Basin in water depths from 600 to 1,600 meters and has a working petroleum system. Whilst this large block is covered by modern 3D and 2D seismic data sets, with no outstanding work commitments remaining, the majority of the block remains under-explored.
The block contains the Azul oil discovery, the first deepwater pre-salt discovery in the Kwanza basin. This discovery made in carbonate reservoirs has oil-in-place of approximately 150 mmbbls and tested at flow rates of approximately 3,000 bbl/d of light oil. During the period Total announced its final investment decision on the 80,000 bopd Kaminho project in Blocks 20 and 21 just to the north of Block 23.
Afentra holds a 40% non-operated interest, while Sonangol holds the remaining 60% equity and operatorship, in Block 23.
Financial Review
In June 2025, we signed a Sale & Purchase Agreement with Etu Energias for an additional interest in Blocks 3/05 and 3/05A. The transaction is structured with an upfront payment of $23 million, contingent considerations of up to $11 million and will be fully funded from existing cash resources. The effective date of the transaction is 31 December 2023, which is expected to result in a significantly reduced payment on completion, anticipated in late 2025. The completion of the acquisition is subject to the satisfaction of customary conditions precedent including approval by the relevant governmental agencies and the operator. Strategically, the acquisition consolidates Afentra's position across its core offshore portfolio, enhances alignment within the joint venture, and delivers an immediate uplift in production and reserves.
We completed our two planned liftings during the period, at an average realised price of $72.2/bbl, resulting in revenue of $52.0 million. Post period, on 1 July, we sold our third cargo of crude oil of approximately 0.5mmbbls at a sales price of $70.0/bbl resulting in additional revenue of $35.4m. With the proceeds from this sale our cash resources increased to $57.0 million, including restricted funds, resulting in a net cash position of $19.9 million on a pro forma basis post lifting. Afentra had an overlift position of 217,000 barrels post 1 July lifting. Stock position at end-August was 128,745 bbls.
Also post period, we made a voluntary prepayment of $6.9 million on our RBL facility, comprised of $5.3 million debt principal and $1.6 million accrued interest.
We continue to manage our exposure to oil price risk through our hedging strategy and have hedged approximately 70% of 2025 production through a combination of put options and collar structures. The hedge portfolio consists of $60 to $65 per barrel put options, covering 70% of sales volumes, and $80 to $89 per barrel call options, covering 45% of sales volumes. While we continue to explore and evaluate other hedge products in the market consistent with our hedging policy, we have paused our 2026 hedge programme as current pricing does not offer sufficient value protection.
We continue to develop our office presence in Luanda and signed a lease on a new office in July 2025.
As described in our 2024 Annual Report, in line with our commitment to avoid shareholder dilution, we have elected to satisfy vested options under the Founders' Share Plan ("FSP") and employee Long-term Incentive Plans ("LTIP") through market purchases via an existing Employee Share Benefit Trust (the "Trust") rather than issuing new ordinary shares. During the six months ended 30 June 2025, the Trust purchased 381,719 shares on the open market at an average price of ~42p per share. Since 30 June 2025, the Trust purchased an additional 2.3 million shares at an average price of ~49 per share and 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 agreed with the Trust, the Trust is expected to purchase around 6.5 million ordinary shares over 2025 and the first quarter of 2026.
For the rest of 2025, our focus remains unchanged as we continue to seek to strengthen and exploit our portfolio in Angola and seek value accretive M&A in Angola as well as in other jurisdictions in West Africa.
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 decreased to 6,348 bopd from 6,696 bopd reflecting a temporary deferral of planned well interventions between February and May 2025 due to contractual issues. LWIs recommenced in May enabling rates in excess of 23,000 bopd from late June 2025.
1H25 revenue, net of off-take fees, of $52.0 million (1H24: $73.1 million as restated) from two liftings completed during the period at an average realised price of $72.2/bbl in 2025 compared to $82.2/bbl in 2024. Lower revenue was offset by a decrease in cost of sales from $33.9 million during 1H24 to $29.8 million in 1H25.
The profit from operations for 1H25 was $14.8 million (1H24: $33.8 million as restated) with the decrease primarily attributable to the reduced oil price and lower volumes lifted in 1H 2025. During the period, net administrative expenditure increased to $7.4 million (1H24: $5.3 million as restated) as a result of new business activities, M&A related advisory as well as increased headcount in London and Luanda, as the company continues to grow.
Finance costs decreased during 1H25 to $4.1 million (1H24: $4.8 million) following scheduled repayments made on the RBL and working capital facilities.
Group adjusted EBITDAX totalled $27.9 million (2024: $40.8 million):
Statement of financial position
As at 30 June 2025, non-current assets totalled $167.6 million (31 December 2024: $153.5 million). The increase is primarily due to capital expenditure on Blocks 3/05 and 3/05A of $24.8 million offset by depreciation of $10.9 million.
Current assets stood at $58.2 million (31 December 2024: $73.1 million) including inventories of $24.2 million (31 December 2024: $7.5 million), cash and cash equivalents of $14.0 million (31 December 2024: $46.9 million), restricted funds of $7.6 million (31 December 2024: $7.9 million), and trade and other receivables of $11.9 million (31 December 2024: $10.6 million).
Current liabilities were $69.7 million (31 December 2024: $71.1 million) including trade and other payables of $54.6 million (31 December 2024: $52.9 million), borrowings of $11.1 million (31 December 2024: $11.3 million), and contingent consideration of $3.5 million (31 December 2024: $5.5 million).
Non-current liabilities were $51.5 million (31 December 2024: $56.9 million), comprised primarily of borrowings of $25.2 million (31 December 2024: 30.1 million), contingent consideration of $22.1 million (31 December 2024: $24.4 million), and deferred tax of $3.5 million (31 December 2024: $1.7 million). The decrease is primarily due to repayments of RBL debt principal and contingent consideration during the period.
The Group's net assets increased from $98.6 million at the end of 2024 to $104.8 million as at 30 June 2025, primarily reflecting profits earned during the year.
Cash flow
Net cash outflow from operating activities totaled $3.4 million for the first six months of 2025 (2024: $11.0 million inflow). The decrease is primarily lower gross profit on oil sales as a result of the decreased oil price.
Net cash used in investing activities decreased to $21.7 million from $36.9 million in 2024, reflecting asset acquisitions during the first half of 2024 which was offset by an increase in additions to property plant and equipment and contingent consideration payments made during 2025.
Net cash used in financing activities totaled $7.7 million compared to cash generated of $24.9 million in 2024 due to drawdowns on the RBL facility in 2024 to fund asset acquisitions.
Going Concern
The Group's business activities, together with the factors likely to affect its future development, performance and position is set out above and within the CEO Statement, Operations Summary and Financial Review. The financial position of the Group is described in the Financial Review.
The Group has sufficient cash resources for its working capital needs and its committed capital expenditure programme at least for the next 12 months. Consequently, the Directors believe that the Group is well placed to manage its business risks successfully.
The Group has adequate cash resources based on existing cash on balance sheet, proceeds from future oil sales, a conventional RBL arrangement, and a revolving working capital facility, in place with Trafigura and Mauritius Commercial Bank to meet its liabilities as they fall due for a period of at least 12 months from the date of signing the financial statements, based on forecasts covering the period through to 30 September 2026.
The Board has looked at a combination of downside scenarios, including a production shortfall alongside higher costs and lower than anticipated oil prices. The impact of the downside scenarios can be mitigated by a combination of existing hedges and rephasing of certain projects included in the preliminary capital expenditure programme by the Joint Venture. The Board also notes the implementation of the hedging policy and will utilise commodity-based derivatives to manage oil price downside risk where appropriate. The existing financial covenants, the tests of which for current borrowings, have been passed for the Historic Ratio (Net debt/EBITDA) and the Gross liquidity test, and are not forecast to be breached within the going concern period. Thus, the Board believes it is appropriate to continue to adopt the going concern basis of accounting in preparation of the financial statements.
The Directors have, at the time of approving the financial statements, a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future.
Accounting Standards
The Group has reported its 2025 and 2024 interim accounts in accordance with UK adopted international accounting standards.