< "> 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

RNS Number : 9690V
Afren PLC
23 January 2012



Afren plc (AFR LN)

Trading statement and operations update

Initial phases of Ebok development successfully completed

Significant discovery offshore Nigeria

London, 23 January 2012 - Afren plc ("Afren" or the "Company") issues the following trading statement and operations update, in advance of the Company's 2011 full year results which are scheduled for release on 27 March 2012. Information contained within this release is un-audited and is subject to further review.

HIGHLIGHTS

Development and Operations



u Net group working interest production average of 19,200 boepd in 2011. Average production of 42,000 to 46,000 boepd expected in 2012

o Commissioning and ramp up of all 14 production wells associated with the initial phases of the Ebok field development successfully completed

o Approvals for the Barda Rash Field Development Plan received; First Oil expected in August 2012



Exploration and Appraisal activities



u Okoro East discovery starts 2012 exploration campaign (up to 15 wells) with significant discovery

o 549 ft net oil pay in excellent quality reservoir sands; well test programme underway

u Jebel Simrit-2 exploration well on Ain Sifni spudded end October 2011; drilling ahead on schedule

u Marianas semi-submersible drilling rig is due in Ghana imminently and will prepare to spud the Nunya-1x (formerly Cuda-2) exploration well

u Completed an Ocean Bottom Cable 3D seismic over the wider Ebok/Okwok/OML 115 area. Two exploration wells on Ebok North and OML 115 in 2012

u Surveys in Tanzania (Tanga) and Kenya (L17/L18) completed. Exploration drilling in 2012







Corporate Acquisitions and Group Financials



u Acquisition of 60 per cent. and 20 per cent. interest in the Barda Rash and Ain Sifni PSC's respectively, increases 2P and 2C resources from 136 mmboe to 1,026 mmboe (at a cost of US$0.66 per 2C bbl)

u Completion of FHN's acquisition of a 45 per cent. interest in OML26 onshore Nigeria

o Two producing fields (2P and 2C resources of 184 mmbbls), three undeveloped fields (2C resources of 144 mmboe) and significant exploration upside (615 mmboe)

u 2011 sales of US$600 million expected (circa 50% increase on 2010)

u 2011 full year capital expenditure on budget of US$550 million; 2012 budget of US$450 to US$500 million

u Net debt approximately US$548 million



Osman Shahenshah, Chief Executive of Afren, commented:

"In 2012 we successfully commissioned the initial phases of the Ebok development in Nigeria. We have increased our 2P and 2C resources base by 650 per cent. at a cost of US$0.66 per barrel to 1,026 mmboe, with the acquisition of Barda Rash and Ain Sifni in the Kurdistan region of Iraq and saw First Hydrocarbon Nigeria complete its acquisition of OML 26 in Nigeria.

We have started our 2012 exploration campaign with a significant discovery offshore Nigeria, through the Okoro East Exploration well. The multi well drilling campaign in Ghana, Nigeria, the Joint Development Zone of Nigeria São Tomé and Príncipe, Tanzania, Kenya and the Kurdistan region of Iraq, has the potential to materially transform and increase our discovered resource base."



Capital Markets' Morning



Afren will today be hosting a Capital Markets' Morning for analysts and institutional investors. The presentation materials are available on www.afren.com and the playback will be available from 14:00 GMT.

Fantastic news... why is sp down???

my thoughts too,

prob selling on the news and switching into FI stocks ..... i think production may be a bit lower than forecast too

The forecast is the average.....many will have mixed that up with current production and this new discovery should send the sp back up....I bet some people were cursing this morning with stoplosses being broken......luckily mine were a long way down !....unfairly knocked down in my view....

AFR tends to react to the POO which is down,check top line of post 1(header.

200 dma is at 119, and albeit that it is currently on a down trend, it may well provide a support and bounce point

Tenuous. Now 115.95p

Cazenove summary:
"Production, capex and net debt are broadly inline with Bloomberg consensus although 2012 production of 42-46 kboepd is slightly below our forecast of 50 kboepd. We will revert with any changes to our core NAV of 150p post the CMD although do not expect any material changes given lower net debt than we had forecast.
Operational highlights: Afren’s 2011 production of 19.2 kboepd is slightly ahead of our estimate of 18.5 kboepd. However, 2012 production guidance of 42-46 kboepd is below our estimate of 50kboepd, partly due to slightly later than expected first production from Barda Rash, where first oil is expected in August 2012.
Financial highlights: 2011 sales is expected at c.$600m, slightly below consensus of $642m. Capex for 2011 was $550m, inline with our model. Capex in 2012 is expected to range between c.$450-500m, below our forecast of $575m. Net debt at year end was c.$548m, inline with consensus of $558m.
2012 busy with exploration: Following the Okoro East discovery, announced on Tuesday, Afren has a number of high impact wells scheduled for 2012. The JS-2 exploration well on Ain Sifni (Kurdistan) is drilling ahead on schedule. Two exploration wells on Ebok North and OML 115 are also planned, along with wells in Tanzania, Kenya, and the JDZ. We estimate the 2012 programme could add c.244p unrisked (43p risked)."

The 150 people and policemen murdered in Nigeria over the weekend probably didn't help either .

cynic as you suggested good strong bounce off 200 dma today, 150p next stop?

ah well, call things right sometimes, just like predicting spaceships for lifting oil out of uganda!

resistance may be a bit below 150, but longer term that may look a fairly piffling price

Should go a lot higher.....patience.....150p.......soon....

Almost 1m traded in the first 15 mins, very good going for us.

Good test results due soon from Okoro East should give the sp upwards momentum.

not surprised red here today after yesterday's mail article suggesting peeps sell afr!

http://www.dailymail.co.uk/money/investing/article-2093157/MIDAS-UPDATE-It-time-sell-Afren-shares-double.html

The best bit is the comment at the bottom of the Midas article

Alternatively, it could be a good idea to look at the company fundamentals, research the business, consider what's changed since 2007, think about whether that growth is fairly reflected in the price, check the current net asset value, examine it's exploration prospects for this year, take into consideration its cashflow has doubled in the last 12 months then run a sliderule over what cash generation is likely to be in 2012 to 2013, check the 2p and 2c development pipeline, try to work out the likely impact on share value of a company targetting quadruple bbpd exit rates by 2017...... in fact, do all those things this article doesn't even begin to do.

- Grahame P, Bristol, 29/1/2012 00:13

In fact it's a buy.....

the mail article makes no difference to my opinion on afr which is buy - i was just saying expected red as the article suggested selling here - some of the herd were bound to follow that advice