Afentra awarded KON-15 licence in Angola

(Sharecast News) - Afentra announced on Tuesday that it has been formally awarded the KON-15 onshore oil and gas licence in Angola, following a presidential decree issued on 24 February.

The AIM-traded firm said the licence, located in the Kwanza basin, was a further step in its strategy to expand its presence in the country.

It was previously selected as the preferred non-operating bidder for both the KON-15 and KON-19 blocks, with the latter formally signed in July.

Under the terms of the KON-15 award, Afentra said it would hold a 45% non-operating interest in the block, while Sonangol would act as the operator.

The formal contract signing was expected at a later date.

"We are pleased to confirm the formal approval of the KON-15 license by presidential decree," said chief executive officer Paul McDade.

"This award reinforces our commitment to Angola's energy sector and underscores our focus on building strong partnerships with local operators.

"We look forward to working closely with Sonangol and the relevant authorities to fully understand the potential of KON-15 and KON-19 and the wider onshore Kwanza basin."

McDade said the company considered that the proven hydrocarbon basin, which has a history of production but where there had been "very limited activity" for over 40 years, had the potential to deliver significant upside potential for Afentra within its diversified portfolio.

"We will update the market with further developments in due course."

At 1155 GMT, shares in Afentra were up 2.04% at 45p.

Reporting by Josh White for Sharecast.com.