AFR.L Regulatory News (AFR)

28 Jan 2010 07:00

Afren plc (AFR LN)

Operational Update

London, 28 January 2010 - Afren plc ("Afren" or the "Company"), is today giving an operational update, ahead of the announcement of full year results on 29th March 2010.

There will be a conference call at 14:30 GMT / 09:30 EST today. The dial in number is +44 (0) 20 8515 2302. The call will also be broadcast live at www.afren.com, where the accompanying presentation is available.

Key highlights

Production 

Exceeded 2009 production expectations with average group net working interest production of approximately 21,000 barrels of oil per day

At least two infill targets identified at the Okoro field in Nigeria, to deliver incremental reserves in 2010

Infill targets being finalised at CI-11 in Côte d'Ivoire 

Development

Ebok Phase 1 development has commenced (2010 exit rate of 15,000 bopd)

Production, processing and storage facilities contracted (WSS / MOPU / FSO)

Planned acceleration of Ebok West Fault Block, following (Ebok-5) appraisal success, from Q3 2010 (2010 exit rate of 20,000 bopd) 

Exploration and Appraisal

100% drilling success rate at Ebok (91 mmbbls incremental reserve additions)

Amplitude support for additional upside at Ebok North - total Ebok potential upgraded to 209 million barrels (from 182 million barrels)

Several new prospects identified in deeper levels at Ebok

OML 115 acquisition - targeting the channelised Qua Iboe

Emphasis on West African Transform Margin and Upper Cretaceous fairway (Ghana, Côte d'Ivoire, Nigeria) 

  Active 2010 work programme

19 operated wells (exploration / appraisal / production) in firm schedule for 2010

Phase 1 Ebok development - 15,000 bopd (7 wells)

Accelerated Phase 2 Ebok development - 20,000 bopd (6 wells)

Okoro infill drilling, Nigeria (2 wells)

OML 115 exploration, Nigeria (1 well)

Ebok deep exploration, Nigeria (1 well)

La Noumbi, Congo (1 well currently drilling) 

Okwok appraisal, Nigeria (1 well)

Total discretionary capex of US$430 million, funded from existing resources

Osman Shahenshah, Chief Executive of Afren, commented:

"Following a 100% successful appraisal campaign on the Ebok field in Nigeria, with 19 firm wells scheduled for 2010, Afren is embarking on its most aggressive work programme to date. We are targeting 35,000 bopd from the accelerated Ebok development, while continuing to explore and appraise the broader Ebok - Okwok and recently acquired OML 115 area. We continue to further build out our exploration footprint, with emphasis on the West African Transform Margin and Upper Cretaceous fairway and bring forward high impact exploration drilling on OPL 310 in Nigeria. At the same time we are focused on delivering further reserves growth, through materially accretive acquisitions."

Notes to Editors

Afren is an African focused independent oil and gas exploration and production company

listed on the main market of the London Stock Exchange. Afren has a reserves and contingent resource base of 189 net mmboe with additional prospective resources identified approximately 940 net mmboe, across Nigeria, Côte d'Ivoire, Ghana, Congo Brazaville, Gabon and the Nigeria - São Tomé & Príncipe JDZ.

For further information please refer to www.afren.com.