Upstream oil and gas company Afentra has entered into heads of terms with the National Agency of Petroleum, Gas and Biofuels (ANPG) in Angola for the risk service contract (RSC) for offshore Block 3/24.

This block is situated adjacent to Afentra's existing interests in Blocks 3/05 and 3/05A in Angola.

Pending government approval, the formal award of the licence is expected in the coming months.

This move significantly expands Afentra's gross offshore acreage position from 265km² to 810km².

Block 3/24 contains five oil and gas discoveries in shallow water, which aligns with Afentra's infrastructure-led development strategy due to its proximity to Block 3/05. This offers potential for short-cycle, low-cost development.

The heads of terms outline an initial five-year period for Afentra to review the development potential of the current discoveries and explore further prospects.

A 25-year production period will follow upon development of a discovery.

Afentra will hold a 40% interest and operatorship in the block, alongside partners Maurel & Prom Angola (40%) and Sonangol E&P (20%).

Spanning 545km², Block 3/24 includes the Palanca North East, Quissama, Goulongo, Cefo and Kuma discoveries, all within the same Pinda reservoir as Afentra's current oilfields.

The block also includes the previously developed Canuku field cluster, which has produced up to 12,000 barrels of oil per day (bopd).

Estimates suggest more than 130 million barrels of stock tank oil initially in place and 400 billion cubic feet of gas initially in place.

The discoveries and assets provide the opportunity to leverage advanced technology for developments tied back to current infrastructure.

Several exploration prospects have been identified, according to current 3D seismic data.

Production tests at the Palanca North East, Goulongo, Quissama, Kuma and Cefo discoveries have yielded rates of up to 6,000bopd.

Afentra CEO Paul McDade said: "We look forward to reviewing the most efficient development options for the numerous discoveries, utilising the extensive Block 3/05 infrastructure.

“This will provide upside potential to enhance the overall redevelopment plan for the Block 3/05 area, where we expect to significantly increase production and reserves, delivering long-term value and cash flows. Furthermore, we see potential for future infrastructure-led exploration given the prospectivity of the area.”

In May last year, Afentra acquired non-operating interests in Blocks 3/05 and 3/05A offshore Angola from Azule Energy.