LONDON (ShareCast) - (Sharecast News) - Afentra announced on Monday that it has taken a significant step in expanding its footprint in Angola's onshore Kwanza Basin after initialling a risk service contract (RSC) for Block KON4.
Under the terms of the agreement, the AIM-listed oil and gas group said it would hold a 35% operating interest in the block, pending final government approval.

The move aligned with Afentra's strategy to establish itself as a key operator in Angola and to consolidate its presence in the Kwanza Basin, where it already holds interests in Blocks KON15 and KON19.

It said the KON4 block offered short-cycle, low-cost redevelopment opportunities alongside near-term exploration potential.

"KON4 is a significant step in our continued strategy to build a material position in the onshore Kwanza basin in Angola," said chief executive officer Paul McDade.

"We are already working closely with our partners in the contractor group to prepare for an efficient review of the block's existing oil fields and the potential for early development opportunities."

Block KON4 spans 1,387 square kilometres and lies in a historically productive area of the basin, which has yielded over 90 million barrels of oil equivalent to date.

It included the Quenguela Norte field, Angola's largest onshore discovery, with over 200 million barrels of oil in place.

The field peaked at 12,000 barrels per day before being shut in and abandoned in 1999 after producing 42 million barrels.

Afentra said it saw an opportunity to unlock substantial value through the reactivation of these legacy fields using modern technology and redevelopment techniques.

The block's proximity to the Luanda refinery and existing road infrastructure could enable early production and export.

In addition to redevelopment prospects, KON4 offered low-cost exploration upside across both post-salt and pre-salt systems.

"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 KON4 as well as our other licenses KON15 and KON19," McDade added.

Afentra said it will update the market once the KON4 agreement has completed the formal approval process.

At 1224 BST, shares in Afentra were up 5.31% at 54.13p.

Reporting by Josh White for Sharecast.com.

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