Afentra Concludes Strategic Review, Secures $125m Refinancing and Reports FY2025 Results

Afentra’s latest RNS does three important things at once. First, it ends the strategic review and confirms the company is not being sold. Second, it replaces the old debt package with a new $125 million facility that runs to 2030. Third, it shows a business that had a softer 2025 financially, but still looks very focused on production growth from Angola.

For retail investors, the simple read-across is this: Afentra’s board thinks the market was not offering full value for the company, so it has chosen to stay independent and push on with drilling, development and portfolio growth. That is a confident stance, but it also means management now has to prove the upside through results rather than takeover talk.

Afentra strategic review ends with no sale – why the board backed independence

The headline strategic news is that Afentra has concluded its review and decided to remain an independent exploration and production business. The board says several parties engaged, due diligence happened, and actionable proposals were received. But in the board’s view, those proposals did not recognise the “significant upside value potential” in the Angolan portfolio.

That matters because the company had effectively put itself in the shop window. Now it is saying, plainly, that shareholders should get more value from execution than from selling out at today’s price. It also means Afentra is no longer in an “offer period” under the Takeover Code, so the takeover-related disclosure rules fall away.

My take: this is broadly positive, but only if the assets deliver. If a board rejects proposals, investors will quite reasonably expect stronger production, reserves growth and cash generation to justify that call.

$125 million Gunvor refinancing cuts debt costs and gives Afentra breathing room

The refinancing is probably the most important practical part of the announcement. Afentra has secured a $125 million Pre-Payment Facility with Gunvor Group, replacing its existing reserve-based lending, or RBL, facility and working capital facility.

The new package includes a $100 million initial advance plus a further $25 million committed advance available in 2027, subject to conditions. It has a four-year tenor to 2030, carries interest of Term SOFR plus 6%, and includes a 12-month grace period before principal repayments start.

In plain English, this gives Afentra longer-dated funding and lower financing pressure just as it moves into a heavier investment phase. The facility is secured against Block 3/05 and Block 3/05A oil liftings, with total committed volume of 8 million barrels and a targeted minimum annual commitment of 1.8 million barrels.

That is helpful because 2025 showed why balance sheet flexibility matters. Lower oil prices, higher capital spending and timing of liftings all squeezed year-end cash. A refinancing that lowers cost of debt and reduces near-term pressure is a solid result.

Afentra FY2025 results – lower oil prices hurt revenue, but production held up

Operationally, 2025 was decent. Financially, it was tougher. Afentra reported 2025 net average production of 6,324 bopd and sold 1.63 million barrels at an average price of $70.2 per barrel, generating revenue of $114.4 million.

That compares with revenue of $180.9 million in 2024, so the drop is meaningful. The reason is straightforward: lower realised oil prices and lower sales volumes. Adjusted EBITDAX – a cash-style earnings measure before interest, tax and several non-cash or exceptional items – fell to $51.7 million from $90.2 million.

The group also moved to a loss after tax of $3.2 million, versus a profit after tax of $52.4 million in 2024.

Key Afentra numbers	FY2025	FY2024
Revenue	$114.4 million	$180.9 million
Adjusted EBITDAX	$51.7 million	$90.2 million
Loss/profit after tax	($3.2 million)	$52.4 million
Year-end cash	$10.2 million	$54.8 million
Net debt/(cash)	$21.8 million net debt	$12.6 million net cash
Net average production	6,324 bopd	Not disclosed in this summary table

There are a few one-off or non-core factors in that swing. Afentra took a $19.5 million loss on disposal of the Odewayne Block in Somaliland, a $0.5 million impairment on Block 23, and a $1.6 million expected credit loss. On the other hand, it booked a $13.2 million gain on revaluation of contingent consideration.

So I would not read the accounting loss as a collapse in the underlying business. The bigger concern is balance sheet movement. Cash fell sharply to $10.2 million and net debt ended the year at $21.8 million. Even though Debt to Adjusted EBITDAX was still only 0.6x, the company was clearly ready for a funding reset.

Angola drilling, Pacassa SW and resource growth are the real reasons investors are watching

The operational upside here is not hidden. It is all about Angola, and especially the greater Block 3/05 area. The standout recent event is that the Pacassa SW well spudded in April 2026 as part of a fully carried two-well programme.

“Carried” is an attractive word in oil and gas because it means Afentra’s share of the well cost is covered by others. So if the well works, Afentra gets the upside without taking the full cost hit. Results are expected in June 2026.

The company also reported a fourfold increase in 2C working interest contingent resources to 87.3 mmboe. Contingent resources are discovered volumes that are not yet classed as reserves because more work or approvals are needed. It is not the same as proven value today, but it is a strong signal of future development potential.

There is also a clear production ambition. Afentra says it remains confident of achieving production of around 30,000 bopd gross, or 10,000 bopd net, in 2027. If delivered, that would be a major step up from the 6,324 bopd net average in 2025.

Post-period oil sales and the revised Etu deal add useful momentum

Trading after year-end has been active. Afentra sold 0.517 million barrels in January 2026 at an average price of $65.4 per barrel for $33.8 million of revenue. It then sold 0.480 million barrels in April at an average price of $119.3 per barrel for $57.2 million of revenue, although $30.0 million of that had been received in advance and hedge-related liabilities of $8.0 million are due to be settled.

Those April pricing numbers are obviously strong, though investors should not assume that level is sustainable. The company’s net average production for the four months to 30 April 2026 was 5,968 bopd, which is a touch below the 2025 average, so the real boost still needs to come from drilling success and redevelopment activity.

The revised Etu Energias transaction is also worth noting. Because Sonangol elected to participate, Afentra’s revised purchase is smaller at 3.33% in Block 3/05 and 3.66% in Block 3/05A. On completion, Afentra’s interests would rise to 33.33% and 24.99% respectively. Strategically that is still positive, even if it is less than originally envisaged.

What Afentra investors should watch next after the FY2025 results

• Pacassa SW results in June 2026 – this is the nearest-term catalyst and could materially change the tone.
• Execution of the carried two-well programme – good wells matter more than presentation slides.
• Completion of the Etu transaction – still subject to approvals.
• Cash generation under the new refinancing – easier funding helps, but it still needs to translate into stronger cash flow.
• Production trend through 2026 – the board has effectively staked its case for independence on growth.

Overall, I think this is a constructive RNS. The refinancing removes a chunk of financial anxiety, the strategic review conclusion shows board confidence, and the operational runway in Angola looks genuinely interesting. The catch is simple enough: Afentra now has to deliver on drilling and production growth. If it does, today’s decision to stay independent could look smart. If it does not, investors may start wondering whether the board turned down value that was right in front of it.