Afentra has completed the acquisition of a 12% and 16% non-operating interest in blocks 3/05 and 3/05A, respectively, offshore Angola from Azule Energy.

The sale and purchase agreement (SPA) between Afentra's subsidiary Afentra (Angola) and Azule Energy Angola Production was signed in 2023.

The acquisition has increased Afentra's stakes in the offshore blocks, bringing its interest in Block 3/05 to 30% and in Block 3/05A to 21.33%.

The transaction involved a cash consideration of $28.4m at completion, adjusted from an initial $48.5m due to cash flow changes since the effective date of 1 October 2022.

In addition to the increased interests, Afentra has inherited approximately 480,000 barrels of crude oil stock.

The company's financial position at the time of completion includes an expected net debt of $46.2m and a crude oil stockpile of around 840,000 barrels.

For the first four months of 2024, ending 30 April, the combined gross production from blocks 3/05 and 3/05A averaged approximately 23,000bopd.

The ongoing Light Well Intervention programme, initiated by the joint venture in 2023, is set to continue into 2024 with an additional 45 interventions planned across two campaigns, the company said.

Afentra CEO Paul McDade said: “The completion of the Azule Acquisition is the final step in the complex process of acquiring a material equity position in both Block 3/05 (30%) and Block 3/05A (21.33%) through three separate transactions.

“We have now achieved our first goal of having significant exposure to these world-class production and near-term development assets. The next step, working closely with our joint venture partners, is to deliver the full potential of these assets for the benefit of all of our stakeholders while also reducing the carbon footprint of the assets.

“As with the previous two transactions the acquisition structure ensures that Afentra benefits from the net cash flow from the assets while working through the completion process, significantly reducing the cash payment at completion.”

Afentra forayed into the Angolan oil and gas industry in May 2023 with the acquisition of a 4% stake in Block 3/05 and Block 3/05A from Croatian company INA-Industrija Nafte.