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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

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......

Thats better did we hit the bottom ? i remember last year it was 80 to 105 for quite a while ,maybe we are in another range 140 to 170 .

Whole market is up today, so may just be a bounce. Wouldn't be surprised to see the sp drift around this level until the markets pick up (hopefully) in september.

Crude price dropping atm which isn't helping AFR. Tempting buy at 130 however, imo.

Interim 30/08, what is going to drive sp any higher till then? Even if there is good news in the pipeline (no pun intended) we will probably on past performance be the last to know.

Well a double bottom would be about 10p and the way the market is atm it is impossible to guess where a turn around in sentiment will be.

If you look at a 5 yr chart of say VED it shows that at present at least we are on the same path with liitle to stop this current slide.

Hmmm....maybe not 130p.......

this is awful

economic collapse around the corner

Rubbish.

Last year's profits are going down the plughole for me......never had such a bad market.....right in the smack of the holiday period.....would you believe it....

Just a thought but the banks/insurers have held-up reasonably.

I wonder if an institution is on the brink and they're being forced to get rid of their assets

Don't know, but these drops are pissing me off big time...

The world is ending again !! i've never fully understood the markets and never will .
Wish i sold out at 170 now and bought back,,, easy in hindsight.