and group output is what over 35000 per day? Storm in a tea cup comes to mind. I'm happy to be in this one, the next RNS will be the late results and then a lot of people will feel a little foolish predicting doom and gloom I reckon :)
They are producing circa 500 bopd at the moment from Barda Rash so no major issue on cashflow. Also, they would still have been allocating capex to Barda Rash this year, so potentially in the short term could even be favourable on cashflow. Sure operationally its not favourable but on a cashflow basis the impact is small.
for gods sake.... AFR main business is in Africa with a small interest in Iraq, yet the way the pi's are reacting you would think we were GKP. Get a grip, the bulk of the company and profits will be from Africa.
Been in and out of here as many times as with GKP and this is expected news. Oil stocks are always a risk at the best of times but in this area short term this is a risk too far. My advice get out now and jump elsewhere.
Afren - temporarily suspend operations at Barda Rash in Kurdistan Region of Iraq. In light of heightened regional security related issues the company is implementing a phased withdrawal of non-essential field personnel from the Barda Rash field. The suspension is not expected to have a significant impact on the Group’s cashflow. Bottom line: In our yesterday’s upgrade note on Afren we already took a more conservative production ramp-up view on Barda Rash asset as we saw it as an obvious candidate to experience operational delays. Therefore, this morning’s announcement has no impact to our valuation or view on the company. Similarly, with the recent share pull back, we don’t see this morning’s news having a significant impact on the shares on the market. If anything, this may have a tendency to save some of this year’s capex that might have been allocated to this asset in Kurdistan.
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