< "> edit this post http://www.investegate.co.uk/afren-plc-%28afr%29/rns/trading-statement-and-operations-update/201301210700069619
http://www.investegate.co.uk/afren-plc--afr-/rns/2012-full-year-results/201303250700107200A/

In an attempt to cut down the header page,i've transferred some of the older news to Page1 post No.3.

http://www.oil-price.net/index.php?lang=en
http://www.ft.com/home/uk

http://www.investegate.co.uk/Article.aspx?id=201111020700081674R
http://www.investegate.co.uk/Article.aspx?id=201111150700250723S
http://www.investegate.co.uk/Article.aspx?id=201112010705051251T
http://www.investegate.co.uk/Article.aspx?id=201201170700146472V
http://www.investegate.co.uk/Article.aspx?id=201201230701479690V
http://www.moneyam.com/action/news/showArticle?id=4323758
http://www.investegate.co.uk/Article.aspx?id=201204170700164488B
http://www.investegate.co.uk/Article.aspx?id=201205140700212304D
http://www.investegate.co.uk/Article.aspx?id=201205210700407032D
http://www.moneyam.com/action/news/showArticle?id=4430164
http://www.investegate.co.uk/afren-plc-%28afr%29/rns/significant-new-seychelles-3d-seismic-programme/201212120700052973T/
http://www.investegate.co.uk/afren-plc--afr-/rns/2013-half-yearly-results/201308230700063334M/
http://www.investegate.co.uk/afren-plc--afr-/rns/ogo-drilling-and-resources-update/201311190700083404T/
http://www.investegate.co.uk/afren-plc--afr-/rns/trading-statement-and-operations-update/201401280700096280Y/
http://www.investegate.co.uk/afren-plc--afr-/rns/interim-management-statement/201405200700135209H/
http://www.investegate.co.uk/afren-plc--afr-/rns/interim-management-statement/201410300700116483V/
http://www.moneyam.com/action/news/showArticle?id=4942625
http://www.moneyam.com/action/news/showArticle?id=4943375

87.3 million new shares to be sold, plus an increase in debt. Will be interesting to see where the sp ends up at the end of the day.

Good luck to those in - chart says "na".

Harry.yes my thoughts,at what price the placing?

"The Placing is being conducted, subject to the satisfaction of certain conditions, through an accelerated book-building process to be carried out by Merrill Lynch International ("BofA Merrill Lynch") and Morgan Stanley Securities Limited ("Morgan Stanley"), acting as global co-ordinators and joint bookrunners (together the "Joint Bookrunners"). The identity of Placees and the basis of the allocations are at the discretion of Afren and the Joint Bookrunners. The number of Placing Shares and the price at which the Placing Shares are to be placed (the "Placing Price") will be agreed by Afren with the Joint Bookrunners at the close of the book-building process. Details of the number of Placing Shares and the Placing Price will be announced as soon as practicable after the close of the book-building process.

The Placing Shares will be issued credited as fully paid and will rank pari passu with existing Ordinary Shares, including the right to receive all dividends and other distributions declared, made or paid on or in respect of such shares after the date of issue of the Placing Shares. The Placing will be made on a non pre-emptive basis.

The Company will apply for admission of the Placing Shares to the Official List of the UK Listing Authority (the "Official List") and to trading on the London Stock Exchange's main market for listed securities ("Main Market") (together, the "Admission"). It is expected that Admission will take place and that trading will commence on or around 2 August 2011. "

All good here long term 8-)

At some point blanche, may be worth locking in some profit just in case the new iraqi (Kurd) deal goes sour? A bit galling for all to see the sp fall from 170+. I know you have been holding these for a long while. Must be a least a cruise worth of profit!!!?

Actually reduced by half my holdings(along with ohter stocks) sometime back,more to do with the market in general. As far as the latest acqu,a little concerned that i'm already subject to Iraqi exposure,via GKP?

It's good to see institutional investors are backing their expansion into Kurdistan. It shows Afren is going multinational for a start.

135P the placing price tp me,seems reasonable? See what tomorrow brings,but thinking of reducing further or even selling all,for now?

140 holding fast .....just like me!!!

Result of Placing - 113.0 million (US$184.5 million) Raised

Afren plc announces that it has raised 113.0 million (US$184.5 million) before commissions and expenses by the placing completed today of 83,679,544 new ordinary shares of one penny each in the capital of the Company (the "Placing Shares"), with institutional investors, at a price of 135 pence per share (the "Placing"). Merrill Lynch International ("BofA Merrill Lynch") and Morgan Stanley Securities Limited ("Morgan Stanley") are acting as global co-ordinators and joint bookrunners (together the "Joint Bookrunners") in relation to the Placing.

The Placing represents in aggregate approximately 8.49 per cent. of the issued share capital of Afren prior to the Placing. The Placing Shares will, when issued, rank pari passu in all respects with the existing issued ordinary shares of Afren, including the right to receive all dividends and other distributions declared, made or paid after the date of issue."

Matrix note out today:

We think the key to valuation is the Barda Rash 2C resources of a net 882mmbbls and, in particular, the light vs heavy oil spilt. Net light oil 2C is 304mmbbls and net heavy oil net 578mmbbls. The plan is to rapidly increase production (15,000 bopd by end 2012, 35,000 by end 2013, 125,000 bopd by end 2017) from the light oil resources. The heavy oil will only be developed after that. On that basis and given the enormous uncertainty as to the potential to commercialise the heavy oil resources, we think the valuation metrics should be considered only on the light oil. This yields a valuation of very close to $2 a barrel compared with our view of in-the-ground reserves in Kurdistan (under typical fiscal terms) worth around $4 a barrel at a $100 oil-price assumption.

This, then, looks like a good entry price for Afren, but (1) there is still uncertainty about the quality of the resource base, (2) Kurdistan remains one of the higher-risk geographies, (3) this will require a step change in development for Afren at a time when the company appears to be fully occupied with Nigerian developments, and (4) it changes the face of the company and perhaps illustrates that for a company of Afrens size, growth in Nigeria is now much more difficult.

Afren secures approval to increase holding in Block 1101 in Madagascar


Oil and gas group Afren has secured government approval to assume operatorship and increase its interest in Block 1101, onshore Madagascar, to 90 percent. The move is a substantial increase on Afrens existing 40 percent stake and comes with a commitment to a revised work programme which will see the first two exploration phases combined and the acquisition of an additional 150km of 2D seismic data. Afren has also undertaken to drill one commitment exploration well, which is planned for 2012.

Block 1101 lies on the Eastern flank of the Ambilobe basin in northern Madagascar. The Block encompasses an area of approximately 14,900 sq km onshore and sits adjacent to ExxonMobil's Ampasindava Block. The formation of the Ambilobe basin and the corresponding stratigraphic suites are closely related to the break-up of Gondwanaland and the later separation of eastern Gondwana. There are proven, large heavy oil accumulations in the Isalo formation in Central Madagascar (Bermolanga and Tsimiroro) which attest to the prospectivity of the region.

Some 220 km of 2D seismic was acquired over the block in 2008, identifying three major structures each close to existing wells with recorded oil shows. A working hydrocarbon system on the block is further evidenced by surface oil seeps. Under the agreed terms of reassignment, Afren has increased its overall participation in Block 1101 through the reassignment of a 50 percent interest previously held by Candax Energy, which remains a partner on the block with a 10 percent interest. Government approvals for the reassignment have been received and a revised work

Osman Shahenshah, Afrens chief executive, said: We see tremendous prospectivity in Madagascar and now, as operator, are keen to explore our high potential acreage. We are grateful to OMNIS and the Malagasy authorities for their endorsement and approval of this transaction and extended work program. We look forward to collaborating with our hosts and partner Candax in the ongoing exploration at Block 1101, and to further establishing Afrens long term commitment to this exciting exploration play.

Afren bags a billion barrels with US$588 mln entry into Kurdistan.


Yesterday Afren, whose main assets are in Africa, unveiled a major deal that it describes as a highly complementary extension of its existing portfolio.

The deal is being funded by through a US$200 million credit facility and a share placing, in which it will issue 84 million new shares (about 8.5 per cent of its current share capital). The cash call will be arranged by Merrill Lynch and Morgan Stanley, and it will be completed at the beginning of August.

In all it bought two assets. It has bought a 60 per cent stake in the Barda Rash production sharing contract (PSC) from Komet Group. Separately, Afren has agreed to acquire a 20 per cent stake in the Ain Sifni PSC, from the Kuristan Regional Government (KRG). The oilfield is operated by Hunt Oil, which owns 60 per cent, while the KRG retains 20 per cent.

Between them these two assets give Afren 890 million barrels of independently certified net 2C oil resources, and a total net un-risked 1.074 billion barrel resource.

Afren highlighted that it hopes to deliver gross production of 125,000 barrels of oil per day (bopd) in just over five years.

In phase one it plans to establish production at 15,000 bopd by the end of next year. After that this will step up to 35,000 bopd by the end of 2013 and up to 125,000 by the end of 2017.

Meanwhile it will also be undertaking an active exploration and appraisal drilling programme over the next two years.

According to Royal Bank of Scotland analyst Phil Corbett, who rates Afren as a buy with a 235p target, this is probably not the deal the market was expecting - in terms of geography and scale but it does provide a material growth opportunity.

We expect a positive initial reaction to this deal, the analyst said in a note to clients.

It gains Afren entry to one of the global upstream hotspots, and we believe the price is attractive after taking into account the appraisal, development and political risk.

Oriel Securities analyst Nick Copeman said: Our initial valuation suggests this deal is accretive based on the existing 2C resources alone increasing our risked net asset value to 175p a share (after reflecting country risk) and that the exploration potential should provide further upside.

Similarly Investec analyst Angus McPhail repeated a buy recommendation, while putting his price target under review while he weighs up the implications of the deal.

Stressing that the deal adds cheap barrels, McPhail said: The acquisition gives Afren access to contingent reserves and prospective resources which can be turned rapidly into proven reserves and potential production by the second quarter of 2012, which will enhance its existing production base.

I wouldn't wana be outa these........anytime

I notice :"We expect a positive initial reaction to this deal, the analyst said in a note to clients.".............a very disappointed analyst then!!!

Added another spread bet Limit Buy @ 142.0

http://www.proactiveinvestors.co.uk/companies/news/31262/kurdistan-oil-rush-moves-up-a-gear-as-afren-grabs-two-projects-for-us588-mln--31262.html

"....According to Royal Bank of Scotland analyst Phil Corbett, who rates Afren as a buy with a 235p target, this is probably not the deal the market was expecting - in terms of geography and scale but it does provide a material growth opportunity.
We expect a positive initial reaction to this deal, the analyst said in a note to clients.
It gains Afren entry to one of the global upstream hotspots, and we believe the price is attractive after taking into account the appraisal, development and political risk.
Oriel Securities analyst Nick Copeman said: Our initial valuation suggests this deal is accretive based on the existing 2C resources alone increasing our risked net asset value to 175p a share (after reflecting country risk) and that the exploration potential should provide further upside.
Similarly Investec analyst Angus McPhail repeated a buy recommendation, while putting his price target under review while he weighs up the implications of the deal.
Stressing that the deal adds cheap barrels, McPhail said: The acquisition gives Afren access to contingent reserves and prospective resources which can be turned rapidly into proven reserves and potential production by the second quarter of 2012, which will enhance its existing production base.
With a more cautious perspective finnCaps Will Arnstein kept a sell on the stock. He reckons the acquisition is very high risk and its success requires political changes that are out of Afrens control.
On balance, we believe the deal increases the risk profile of Afren, which was already considered one of the highest risk E&Ps in the sector, Arnstein said in a note to clients."


C & P'd, courtesy of chopper89x on eyeyeyeye
--------------------------------------------
Firstly I apoligise for my brief and somewhat vauge account of the afren investor conference call currently suffering with some gaestro infection and not 100% with it but interesting points are mentioned below

sinopec to build pipeline up near taqtaq that it is expected that shaikan,jebel, bada rash and ain sifni will have access to and obviously Sinopec themselves, it is planned to be a 1mmbopd pipeline.

said currently trucking costs are about $1.50/bl per 100km

Interesting to hear that hunt to date have sold over 440,000/bl in the domestic market and possibly some via export.

Very interesting comment on that hunt of shared seismics with GKP as there is strong evidence to suggust that at some deeper levels shaikan
jebel, ain sifni and bada rash are interconnected, let alone possible conectivity to AB and SA - leads me to believe that what this is a potential new super super giant that could have oip well over 170bboip

on badarash their factoring recovery rates of 10-12% on the heavy 33-36api oil and 22-23% on the lighter 17api stuff.

now the point that confused me is the acquisition cost is absurdly low and I wanted to question this , unfortuantely cat got my tounge and only got out about 1/10th of what i wanted to say , they stated that komets intentions were always to farm out and get some cash whilst seeing it into production, but given the upside that exists and the cost they paid makes the deal too good to be true,
the ceo's response was that they have always had a very good relationship with komet and the competition was very high, but then i dont see why komet accepted a low price to but the 60% interest .. this isnt a tsc were talknig about surely they would of wanted as much as possible and hence my confusion at the ceo's response will try and email my question better worded tonight.
however they did say that the price they paid they believe currently reflects a cost per barrel in kurdistan. and they strongly expect this to change when the politics become clearer.
if you ask me considering they state contractor net backs are 13% 66c per 2c barrel seems like komey have been mugged off,
will try and post more as it comes back to me, but lots of well known II's asking questions on the calls.

Afren plc (AFR LN)

Egbert Imomoh named 2013 President of Society of Petroleum Engineers

London, 1 August 2011 - Afren plc ("Afren" or the "Company") is pleased to announce that Egbert Imomoh, Afren Chairman, has been appointed to the honorary role of 2013 President of the Society of Petroleum Engineers (SPE).

As president, Mr Imomoh will lead SPE's international Board of Directors, which is the policy-making and governing body of the society. The 27-member Board represents SPE's geographic and technical diversity. SPE is the largest individual-member organization serving managers, engineers, scientists and other professionals worldwide in the upstream segment of the oil and gas industry.

Mr Imomoh has been a member of SPE since 1973 and was a founding member in Nigeria. He was chairman of SPE Nigeria Council in 1986 and was named a Distinguished Member of the society in 1999. He served as the first regional director for Africa on the SPE Board of Directors between 2000 and 2003. He has been chairman of the Board of Trustees, SPE Nigeria Council since 2007.


About Society of Petroleum Engineers

The Society of Petroleum Engineers (SPE) is a not-for-profit professional association whose members are engaged in energy resources development and production. SPE serves more than 97,000 members in 118 countries worldwide. SPE is a key resource for technical knowledge related to the oil and gas exploration and production industry and provides services through its publications, events, training courses, and online resources at www.spe.org.

still at 140p......