< "> 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

What do you think about the results?
It was for last year, oil price 97....
http://www.moneyam.com/action/news/showArticle?id=5027976

Afren unveils funding deal amid $2bn loss on oil slump

Afren has unveiled details of a long-awaited recapitalisation plan as it posted a massive $1.95bn (£1.27bn) loss for last year due to the falling price of crude and a write down in Iraqi Kurdistan. The company said that $255m of net total funding will be provided by bondholders as part of the recapitalisation, with the ability to increase this net funding to $305m on demand. Alan Linn, Afren’s newly named chief executive said “I am looking forward to working with the Afren team and its partners to deliver a lean and effective business with an oil production and development focus. The strong support shown by key stakeholders ensures we can now progress a number of important development projects in Nigeria which will contribute early production and revenue to the business and support our aim to be profitable in a lower oil environment.”…telegraph.co.uk

hxxp://ekurd.net/iraqi-kurdistan-news-in-brief-may-1-2015-2015-05-01?
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WTI OIL a,most $60's a barrel

Sharp rebound.......sp recovery about to begin ?.....

A few gaps in the chart once the sp gets going. AFR still with huge debts and need $80pb to make money.

Must be worth 5 or 6p somehow......

A bit of a catch 22 their Harry,$80/barrel will reinvigorate the shale oil industry,creating an over-supply situation once again?

It now seems that ordinary shareholders will only have an interest in 14% of the company, once the Rights Issue is complete. The bondholders will pretty much own the remaining 86% and can do as they wish without having to get shareholder approval. Of course the bondholders are as keen to see AFR succeed as we are, but private investors will just have to sit and watch regardless of the way the company is run. This is all going to take until the end of July to complete, so a while to go yet.

Canaccord note today:
"* AFREN (SELL, TP 2p): FY Results (announced post market close 30th April) – should be no surprise at the grim reading as most of this was made clear and well documented in the 13th March Recapitalisation and Trading statement. Crucially the future remains very uncertain with the complex debt restructuring outcome still pending and the risks over Nigerian assets still present (especially related to Okoro). However, the formal results remind us of some eye-watering numbers, particularly when taken in context with the company’s current market cap of £36m. Impairment charges of $2bn (non-cash) dominate the headlines and relate to the oil price fall ($1.1bn) and Barda Rash write-off ($0.9bn), and operational performance was disappointing too, with production of 31.8kb/d, below the anticipated range of 32-36kb/d. But more than these it was the problems with management which reflected on the company culture, and the debt burden (end ’14 net debt $1.07bn) and repayment problems for 2015 (we estimated a cash shortage of $400m by end ’15) that caused the greatest concern. The company is clearly trying to address the former with appointment of a new CEO (Alan Linn is now in charge and new directors will be sought) and adoption of new internal policies and procedures; and the latter through the complex restructuring which includes a debt for equity swaps. The initial step in this restructuring process has been completed with an injection of net interim funding of $200m and a further $55m committed to be provided in July 15. This provides immediate relief, but there are additional phases of restructuring required. A good/necessary first plank then, but the whole process needs to be in place for equity to start to gain some confidence around the balance sheet. The timetable for completion of this complex series of transactions is now anticipated for end July ’15 (from June ’15).
Until the smoke clears from all these issues it is difficult to feel positive about the equity outlook. In our view equity investors should look elsewhere at least until the internal issues, clarity of asset tenure, and restructuring, are all satisfactorily resolved and completed."

London, 11 May 2015
Further to the announcements of 9 April 2015 and 30 April 2015, the Board has decided, at the expiration of the 30 day grace period under its 2019 bonds, not to pay approximately US$12.8m of interest which was due on 8 April 2015. Notwithstanding the completion of the US$200 million interim funding on 30 April 2015, the Board continues to seek to preserve cash until the full restructuring has been completed. While such non-payment will result in a default under the 2019 Notes, this will not result in an immediate obligation to repay such 2019 Notes or any cross-default under its 2016 Notes or 2020 Notes or its other debt facilities.

The Company has received assurances from the ad hoc committee of existing noteholders (which members hold in aggregate approximately 35% of the principal face amount of the 2019 Notes and 50% of the total principal face amount of the 2016 Notes, 2019 Notes and 2020 Notes) that the committee has no current intention to take enforcement action with respect to the 2019 Notes held by its members as a result of the failure to make payment of interest due under the 2019 Notes. Under the terms of the restructuring announced on 13 March 2015 and 30 April 2015, any accrued but unpaid interest on the 2016 and 2019 bonds will be refinanced as part of the reorganisation of the Group's debt facilities.

SRM Global Master Fund Limited Partnership holding gone up to 5%.

StockMarketWire.com
Afren's revenue fell to $130.3m in the first quarter - down from $269.0m a year ago.

The fall in revenue was due to lower realised oil prices and production liftings from Ebok utilised to settle a net profit interest (NPI) liability.

NPI represents a contractual profit share payable to previous owners of the Ebok field for which liftings made in settlement are offset against cost of sales (NPI liftings began in Q4 2014).

Q1 net production at 36,035 barrels of oil per day was above the FY guidance range but in line with expectations.

The fall in revenue, together with higher administrative costs incurred in relation to the Group's recapitalisation and the write-off of Q1 2015 expenditure on certain exploration and evaluation assets, resulted in a loss before tax for the period of US$48.1 million (Q1 2014: profit before tax of US$55.8 million).

Although the group continues to reflect the benefit of a five-year tax holiday at the Ebok field, a tax charge of US$5.0 million was recorded for Q1 2015 (Q1 2014: US$16.7 million credit).

The tax charge for Q1 2015 principally relates to the current tax charge at Okoro. This resulted in a loss after tax of US$53.1 million (Q1 2014: US$72.5 million profit after tax).

Chief executive Alan Linn said: "Afren has delivered a solid first quarter result despite the continuing low oil price and additional NPI liftings from Ebok. We have already significantly curtailed immediate capital expenditure and are now working with our Partners to optimise forward investment in development projects in Nigeria.

"Business and process streamlining has commenced and we expect to begin seeing improved bottom line results from these efficiencies across the business as 2015 unfolds. Whilst interim funding is now in place, it will take time to work through historical issues and funding remains extremely tight.

"We will be working with shareholders in the coming weeks to explain the benefits of our proposed new funding structure and encourage them to support us in resolving our financing issues in order for Afren to deliver the long-term value and attractive future I see for the Company." Separately, Afren also announced that holders of the company's 2016, 2019 and 2020 notes have agreed to subscribe for further new senior notes up to the maximum level permitted of US$369m.

This will result in the group receiving an additional US$93 million in net cash proceeds compared to the amount announced on 30 April.

The proceeds from the new senior notes will be used to re-finance the interim funding announced on 13 March, fund the development of the group's core producing assets and for general working capital purposes. The additional net cash proceeds will also be applied to provide additional working capital and fund lower risk developments with strong return potential.

StockMarketWire.com
Afren has decided to utilise a 30 day grace period under its 2020 bonds with respect to approximately US$11.9m of interest which was due yesterday pending the completion of the recapitalisation process.

The board anticipates that, given the terms of the consensual restructuring that has been agreed with its principal creditors, it will not pay such interest at the expiry of this grace period.

While such non-payment will result in a default under the 2020 Notes, this will not result in an immediate obligation to repay such 2020 Notes or any cross-default under its 2016 Notes or 2019 Notes or its other debt facilities.

The company has received assurances from the ad hoc committee (which members hold in aggregate approximately 39% of the principal face amount of the 2020 Notes and approximately 33% of the total principal face amount of the 2016 Notes, 2019 Notes and 2020 Notes) that the committee has no current intention to take enforcement action with respect to the 2020 Notes held by its members as a result of any failure to make payment of interest due under the 2020 Notes.

The company expects to be able to provide further information regarding the terms of the Recapitalisation, including a circular to shareholders regarding the terms of the proposed open offer of new shares, within the next week.

........ SP is being dragged down by nervous PI's and as price falls Stop losses are triggered, hence making the SP fall even more.

I suspect that once Stop Losses are exhausted, and as the Vote decision nears, there will be an influx of PI's; especially those who want to take control of AFR to mop up surplus shares.

Meanwhile Global demand for oil is starting to rise, with the $oil per barrel steadily rising and consolidating @ $60+.

AFR continues to be high risk for shareholders, but still not dead yet.

Worth holding a handful of shares IMHO, just in case the Bond holders do not get it all their own way.

DYOR

HAb

no its just that afr are in financial dire straits coupled with carp oil prices and suspicious activities and have an offer looming within the week..............

......... It will be interesting to read what the Financial Services formal investigation reports, wrt to the activities of those BoDs and how AFR shares have been manipulated by 'others' (allegedly) to cease control of the company.

DYOR

HAb

FS are just toothless wasters everyone knows it - did hear something more robust happening concerning this comedy show though - aside from that more south next week

fantastic day again - gla

This is a tax right off for me now ,i'll offset it when i do well .

Worth a punt @1p.

StockMarketWire.com
Afren is seeking shareholder approval for a debt restructuring and refinancing package which includes an open offer and the recovery of $148m by restructuring its outstanding loan notes.

And it warned that it the resolution was not approved existing shareholders had no prospect of any value.

Chairman Egbert Imomoh said: "Afren Shareholders have been through an incredibly difficult period in the life of the business, and the next steps, whilst complex, are essential if we want to successfully emerge from this period on a value growth trajectory."

Imomoh added: "The only viable course of action for the business is to progress through the proposed refinancing process; it offers the only secure route to relieve the unsustainable debt burden, and support Afren's recovery."

The restructuring comprises the implementation of a scheme of arrangement in respect of the existing notes, including:

- the issue of approximately US$369m of new high yield notes due 2017 to refinance and repay the bridge securities and to provide an additional US$148m in net cash proceeds to the group

- the conversion of approximately US$234m of the existing notes (representing 25% of the 2016, the 2019 and the 2020 notes) into new ordinary shares in the company, representing 80% of the existing issued share capital

- the remainder of the existing notes to be cancelled and reissued in equal amounts of approximately US$350m each of new notes due December 2019 and December 2020 respectively, with an annual interest rate of 9.1%

- the issue of additional new ordinary shares, equal to 50% of the issued share capital of the company following the debt for equity swap, to holders of the new senior notes

- the issue of up to £49.2 million (approximately US$75 million) of new Ordinary Shares by way of an open offer to Shareholders at 1 pence per Open Offer Share;

· the issue of new ordinary shares, equal to 10% of the fully diluted share capital of the company following the completion of the open offer, to holders of the new senior notes in order of priority of their agreement to subscribe for the new senior notes

- the issue of new ordinary shares, equal to 5% of the fully diluted share capital of the company following the completion of the open offer, to the holders of the Bridge Securities in partial repayment of the bridge securities;

- the entry into an amended term facility with the Ebok lenders, including to extend the period for repayment of the US$300m Ebok facility until June 2019

- the entry into an amended loan agreement with the Okwok/OML 113 lender, including to extend the period for repayment of the US$50m Okwok/OML 113 Facility until June 2019

Afren said that if shareholders do not approve the resolution, existing shareholders have no prospect of any value. Upon a 'No' vote:

- The restructuring will still proceed without delay

- The amount of debt will increase by approximately US$266 million immediately as compared to a Yes vote and the interest rates on the Group's new debt will cause outstanding debt to increase significantly. There is no value for shareholders unless and until all of this debt is repaid

- Holders of the new senior notes will have security over all of the Group's operating subsidiaries

- The Company will be required to have entered into an agreement by no later than 31 December 2016 to sell all of its assets. These assets can be sold to any party, including the noteholders, and can be completed with or without shareholder approval

Chief executive Alan Linn said: "I believe Afren has significant potential within its core Nigerian portfolio which will enable us to successfully emerge from this period and provide growth to all shareholders. The recommended restructuring, combined with the open offer, is the only viable opportunity for our shareholders to realise any value from their investment in the company. I urge all Afren shareholders to recognise this fact and vote to retain their active interest in the company by voting in favour of the proposed debt restructuring and refinancing."