Afentra Plc. Share News (AET)

(Sharecast News) - Afentra reported a solid operational and financial performance for the year ended 31 December on Wednesday, with net average production of 6,229 barrels of oil per day, and total crude oil sales of 2.27 million barrels at an average realised price of $82 per barrel, generating revenue of $186.7m.

The AIM-traded firm said that its assets in Blocks 3/05 and 3/05A performed well, with a major 21-day maintenance shutdown in October delivering key upgrades to power supply, subsea infrastructure, and gas metering systems.

That, the board explained, had led to improved reliability and increased production, with gross output reaching 24,381 daily barrels in December, up from an average of 21,111 barrels for the year.

Water injection capacity also improved, exceeding 80,000 barrels per day, with further enhancements planned in 2025 to increase rates to over 100,000 barrels per day.

Investment in field redevelopment totalled $39m net to Afentra in 2024, with planned capital expenditure rising to $54m in 2025 to support further production growth.

Over 40 light well interventions were completed during the year, contributing an additional 2,000 barrels per day, with a similar programme planned for 2025.

Operating costs for Blocks 3/05 and 3/05A averaged about $23 per barrel.

The company said its exploration portfolio also advanced in 2024 with the award of the KON19 licence in the Kwanza Onshore Basin.

Approval for the KON15 licence was expected in early 2025, with ongoing evaluations to identify further opportunities in the region.

The completion of a Full Tensor Gravity Gradient survey, initiated in 2024, would provide a detailed geological overview of the licensed areas.

Afentra ended the year with a net cash position of $12.8m and total cash resources of $54.8m, including restricted funds of $7.9m.

The company used its reserve-based lending facility with $42m drawn, while its working capital facility remained undrawn.

Afentra said it had implemented a disciplined financial strategy, hedging approximately 60% of its 2025 production with a mix of put and collar options to mitigate oil price volatility.

Looking ahead, Afentra said it was planning to continue its balanced approach to capital investment, ensuring financial stability while pursuing growth opportunities through asset development and strategic acquisitions.

"2024 was a transformative year for Afentra, marked by the successful completion of the Azule transaction, through which we now hold a 30% interest in Block 3/05 and a 21.33% interest in Block 3/05A," said chief executive officer Paul McDade.

"These asset acquisitions have transformed our company, delivered strong cash flow and, following the receipt of proceeds from the fourth quarter lifting, we achieved acquisition payback for the three completed deals.

"Combined with our disciplined financial management, this underpins our strong financial position."

McDade said that operationally, the company made "good progress" in executing the redevelopment plan presented in its webinar in June, achieving improved production performance and a substantial increase in water injection capacity, setting the stage for sustainable growth in the years ahead.

"With a clear focus on continuing our asset redevelopment strategy, we expect strong reserves replacement in 2024 and remain on track to deliver the long-term production growth potential outlined in our June 2024 webinar.

"A key highlight of the Azule transaction was our ability to complete it without raising equity, reflecting our commitment to preserving and enhancing shareholder value.

"As we look to further growth through strategic mergers and acquisitions, our disciplined approach will prioritise high-quality, cash-generative assets that align with our strategic priorities."

Afentra said it would release its full-year financial results for 2024 in April.

At 1342 GMT, shares in Afentra were down 2.29% at 51.2p.

Reporting by Josh White for Sharecast.com.