KEYFACT Energy
WTI (June) $92.96 +$3.29, Brent (June) $101.91 +$3.43, Diff -$8.95 +14c
USNG (May) $2.72 +2c, UKNG (May) 112.99p +7.99p, TTF (May) €45.235 +€3.45
Oil price
Oil is a little better today as Trump ups the ante in the Strait of Hormuz, no talks yet but the ceasefire is only just holding. IEA Chief Fatih Birol has been sounding off in Singapore but as ever he’s chasing headlines on the conference circuit.
The EIA inventory stats were mixed, crude built by 1.925m barrels unlike the API who saw a big draw, but in gasoline and distillates they agreed on quite decent draws. Right now these figures are going to play second fiddle to the shortages created by the war.
Deltic Energy
Deltic yesterday made a statement re share price movement and possible offers for Deltic
The Board of Deltic notes the recent movement in the Company’s share price.
The Company confirms that it is currently in discussions with three parties, being (i) Capricorn Energy PLC; (ii) Petrogas International E&P Coöperatief U.A, a subsidiary of Mohammed Al Barwani LLC; and (iii) Blue Concept Hld AS, a private Norwegian company, which have each separately approached the Company regarding possible cash offers for the entire issued and to be issued ordinary share capital of the Company.
There can be no certainty that any of the above discussions will result in an offer being made for the Company, nor as to the terms on which any such offer may be made.
In accordance with Rule 2.6(a) of the Takeover Code, each of the Potential Offerors is required to announce either a firm intention to make an offer for Deltic (pursuant to Rule 2.7 of the Takeover Code) or that it does not intend to make an offer (in which case the announcement will be treated as a statement to which Rule 2.8 of the Takeover Code applies) by 5:00pm on 20 May 2026 (being the 28th day following the date of this announcement), unless the Panel on Takeovers and Mergers (the “Takeover Panel”) has consented to an extension of this deadline in accordance with Rule 2.6(c) of the Takeover Code.
The Deltic Directors will carefully consider proposals from the Potential Offerors in conjunction with the Company’s advisers.
As a consequence of this announcement, an “Offer Period” has now commenced in respect of the Company in accordance with the rules of the Takeover Code and the dealing disclosure requirements listed below will apply.
Not much to add here, after the trauma of the Viaro non-event Deltic shareholders deserve some sort of recompense and at least with three potential suitors there must be a chance of a half decent payday.
And they do deserve something, readers will know that I have always thought that Selene in particular is a very valuable piece of real estate and quite why the shares are where they are is one of the mysteries of the modern world.
Afentra
Afentra has provided an operational and financial trading update for the three months ended 31 March 2026.
Key Highlights
- Strategic Review: the company continues to review options to maximise shareholder value
- Block 3/05 Drilling: fully carried two well programme started with spud of Pacassa SW
- Etu Energias Acquisition: Sonangol elected to participate; new SPAs signed
- Q1 2026 Net Average Production: 5,958 bopd
- Crude Oil Sales & Revenue:
o 0.517 mmbbls sold in January at $65.4/bbl average price: generating $33.8 million revenue
o 0.5 mmbbls to be sold in April; expected to generate ~$50 million proceeds after hedging
- Kwanza Onshore: eFTG survey completed; KON4 licence awaiting Council of Ministers approval
- Borrowings: drawn RBL of $31.5 million, Net debt of $12.6 million at 31 March 2026
Operational & Corporate Overview
Block 3/05 & 5A Asset performance
Production
- Gross average production for the three months ended 31 March 2026 was 20,006 bopd (Net: Block 3/05 5,856 bopd; Block 3/05A 102 bopd)(1). Production was impacted by downtime associated with the Borr Grid drilling unit positioning over the Pacassa production platform.
- Asset uptime remained stable throughout the period, supported by continued progress across the asset revamping and integrity workstreams.
Revamping & Integrity
- Multi-year redevelopment plan remains on track underpinning increased reserves recovery and production growth. Key workstreams during the period include:
o Water injection averaged ~45,000 bwpd during the period, with rates of up to 70,000 bwpd achieved. Focus on increasing sustained water injection rates continues, targeting rates of ~100,000 bwpd in H2 2026
o Infrastructure upgrades supporting improved reliability and operational performance progressed across key platforms, with work now completed at Pambi platform and ongoing at Cobo and Palanca platforms.
o Palanca FSO works completed and formal recertification received for a further five-year period.
o Six light well interventions (LWI) were completed during the period. The full 2026 LWI programme is targeting ~40 interventions.
2026 infill drilling and workover programme
- Agreement signed with Sonangol to use the Borr Grid drilling unit. Drilling has commenced with the spud of Pacassa SW well. Initial well is expected to take between 70-80 days.
- Two-well programme will be financed by Sonangol, with costs recovered from future incremental production revenues from the wells and is therefore not expected to impact the Company's 2026 cash capex.
- Second well in the programme is expected to be the Impala-2 development well.
- Programme targets a potential gross production uplift of ~9,000 bopd and gross recoverable resources of over 100mmbo.
- Hydraulic workover programme preparations are ongoing with execution planned for late 2026/27.
Block 3/24
- Operational activities in support of the GPQ development progressed during the period, including the planning of a survey vessel programme to execute wellhead inspection, survey and measurement scope.
- Subsurface work continues to assess the full extent of the hydrocarbon discoveries and exploration potential within the Block
Onshore Kwanza basin (KON15 & 19)
- Acquisition of the eFTG geophysical survey data was completed across the licence areas with initial results being interpreted and integrated with existing datasets.
- Technical studies progressing towards assembling a full prospect inventory and planning for future 2D seismic acquisition.
Portfolio expansion
- Etu transaction: Sonangol elected to participate in the acquisition resulting in Sonangol, Afentra and M&P jointly acquiring Etu's interests in Blocks 3/05 and 3/05A. Afentra will now acquire an additional 3.33% in Block 3/05 and 3.66% in Block 3/05A. Completion of the transaction, now expected in Q2 2026, remains subject to customary conditions precedent, including government approval in Angola.
- KON4: will be submitted to the April Council of Ministers for approval, with final award pending and expected in Q2 2026.
Financial Overview
Key Financials as at and for three months ended 31 March 2026
- Revenue of $33.8 million(2)
- Cash resources of $18.5 million (including $5.0 million of restricted funds)
- Debt outstanding:
o Reserve Based Lending Facility: $31.5 million
o Working Capital Facility: zero
- Net debt of $12.6 million
Crude Oil Sales
- Lifting of 517,643 bbls in January with average price of $65.4/bbl, generating revenue of $33.8 million.
- Lifting of ~500,000 bbls planned for April, pricing based on April Dated Brent, together with the impact of the Company's hedging programme, expected to generate proceeds of ~$50 million.
- Prepayment of $30 million received against April cargo which will be repaid from the cargo proceeds.
- Three further liftings of ~450,000 bbls anticipated in 2026.
Hedging
- Hedges with an average collar ceiling of $90/bbl in place on 50% of the April lifting.
- Approximately 50% of July and September projected sales of 900,000 bbl currently hedged using collar structures with put prices ranging from $60/bbl to $68/bbl and collar ceilings ranging from $77/bbl to $78/bbl.
Refinancing
- Refinancing discussions are well advanced to significantly enhance access to debt capital to support the company's future investment programmes.
- The existing RBL facility with Trafigura and MCB has been subject to amendments to support the ongoing refinancing plans.
Strategic Review
- The Company confirms that the strategic review process announced on 19 March 2026 is ongoing. Further updates will be provided as appropriate.
The Company expects to release its full year 2025 results in the second half of May 2026.
Paul McDade, Chief Executive Officer, Afentra plc commented:
"Afentra has made a strong operational and financial start to 2026. During the quarter we generated revenues of ~$34 million from the sale of 517k barrels and commenced the first drilling campaign for over a decade on Block 3/05, with the prospect of a transformational increase in our production and resource base. Looking forward, we remain on track for our second cargo lift of 2026 later this month, increasing our working interest in Blocks 3/05 and 3/05A and seeing the results of the fully carried drilling campaign in the second half of 2026. Our team remains focused on delivering our organic growth projects while continuing to assess all options to accelerate the growth and development of our high-quality Angolan portfolio. Our performance to date, combined with our well-advanced debt refinancing and the ongoing strategic review, firmly underpins our strategic commitment to maximising shareholder value."
(1) Production figures are reported on a net (working interest) basis; net entitlement volumes are reflected in revenue and cash flow reporting.
(2) Revenue is net of the state's fiscal take (cost oil and profit oil allocation), but prior to deduction of petroleum income tax (PIT).
Afentra remains in good nick, although 1Q production was slightly down as the drilling unit was in repositioning mode. Revenues were obviously very high and the imminent lifting should mean a much bigger take than the one in January although hedging has taken some of the icing from the cake.
The two well drilling programme is underway, the first on Block 3/05 for over a decade and with Afentra fully carried with no cash impact to them and as CEO Paul McDade states ‘with the prospect of a transformational increase in production and resource base’.
This will markedly change the value of the company and makes the strategic review much more difficult, at least should it smoke out a bidder for the company what sort of a discount will be applied? Indeed with the way that Etu are playing the area and with plenty of companies queuing up to farm-in to the country any outcome may be possible.
Finally the company are waiting for ministerial approval for the KON4 onshore Block which is expected in Q2 and so expect more on this basin before long. There are certainly plenty of other actors on this particular stage waiting to perform.
Either way my 100p target price is I reckon looking quite exposed. I can’t see that any potential bid would be anything like as low as that and with scope onshore and any drilling success offshore, it would have to be moved upwards a fair bit. Right now it has to stay until after the review, meantime there is plenty of upside…
Supporting presentation:
A supporting presentation has been uploaded to Afentra’s website
Original article l KeyFacts Energy Industry Directory: Malcy's Blog