< "> 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

Seen this before,best example was IEC,dropped roughly 10%. All about the infustructure,doesn't come cheap. They will only raise money at a discount and the market likes whats on offer, so effectively imo a fully subscribed placing is a vote of confidence.
Holding funds in my ISA and readty to buy, once able.
cyril

I think it's good news because the sp won't drop much and barring a disaster, it should support the sp long term. In many ways this could be the springboard the stock needs.

Extreme caution is being advised on the FT chat website at the moment in reference to AFR. Although the reasons are quite complex, this is roughly the summary:
"Afren also announces the exercise, by certain shareholders including some of the Directors (the "Founder Shareholders"), of 40,000,000 warrants over Ordinary Shares (the "Founder Shares") issued pursuant to the Company's Founders' Investment and Warrant Scheme, which are due to expire on 11 December 2009, raising approximately 15 million (US$25 million) (before expenses) for the Company. The proceeds from the exercise of the warrants do not form part of the proceeds of the Placing but will be used in conjunction with the net proceeds of the Placing as described above.
In order to finance the exercise of these warrants and to pay tax obligations arising from the exercise, the Founder Shareholders have agreed to sell some of the Founder Shares in the Placing at the Placing Price (the exact number of which will be calculated following determination of the Placing Price)."
FT [We reckon existing shareholders are facing 25% dilution]
Unspecified source : "Afren announced this morning that it will cancel its AIM listing to move to the LSE. Management had been talking about this move for quite some time and the new listing should give higher visibility to the company. However, valuation is still not attractive and going back to our point that management overestimates reserves, if you go on Afrens website and download the latest analyst presentation you will find evidence of what weve been saying.
We sought clarification from Afren on the reserves gap between NSAI and their own estimate and we were not convinced by the answers that were provided. On Okoro, according to AFR, the annual report referred to the upper and lower sands containing 28.9 mmbbl and this constituted their announcement that there had been a downgrade. On CI-11, the company concedes that its current reserves number represents a small downgrade from that published at the time of acquisition
It says NSAI is another 40% below that because it has yet to incorporate some of Afren's more recent work. No explanation was offered for the difference between the NSAI number and the original number. On the OPL 310, we got clarification on the price they paid: $3 m signature bonus + $10m upon going from OPL to OML + $4 m on first oil. Bottom line: we still have no comfort in AFRs internal estimates, in that regard well use NSAIs numbers which lead us to SELL. SELL AFR"
As presented to the AGM in June 2007, a Founders Scheme has been introduced. Under this scheme the Founders of Afren undertook to invest a total of US$5.0
million equivalent in Afren shares prior to 30 September 2008 and were granted a total of 40 million warrants at an exercise price of 1.60 per share but only if the
share price has reached 2.50 for at least 30 days (an increase of 56% above the exercise price). The warrants expire in December 2009. The shares were purchased at an average price of 1.28 and the agreements were finalised in January 2009. The warrants were subject to certain anti-dilution clauses and as such will be repriced in the recently announced private placement to the lower of the share price of the financing over the five days prior to the issue of the shares or the issue price of the new shares plus 20%. The performance criteria is similarly repriced to 56% above the warrant price.
Basically, it looks like they put in their own money, share price dropped and shareholders are now getting to bail them out at a huge discount."

Harry this article is certainly a warning shot across the bows and PI's may well take heed, especially after SEY's disappointment offshore Mauritainia.

I'm sure that those who may consider taking up the olacings will look very carefully at such issues,so lets see what they decide?
A thought had crossed my mind of the days RNS,perhaps encouraging a drop before discount???
cyril

81p placing....market seems to like it...

Business Financial Newswire
"Afren has raised 104.9m before commissions and expenses by the placing of 129.5 million new ordinary shares with institutional investors at 81p apiece.

This represents in aggregate approximately 18.0% of the issued share capital of Afren prior to the placing. "

Result of Placing - GBP104.9 million (US$175.0 million) Raised


Afren plc ("Afren" or the "Company") announces that it has raised GBP104.9
million (US$175.0 million) before commissions and expenses by the placing
completed today of 129.5 million new ordinary shares of 1 penny each in the
capital of the Company (the "Placing Shares") with institutional investors at 81
pence per share (the "Placing"). Merrill Lynch International ("Merrill Lynch")
is acting as global coordinator and joint bookrunner, Morgan Stanley Securities
Limited ("Morgan Stanley") as joint bookrunner and Jefferies International
Limited ("Jefferies"), Nomura International plc ("Nomura") and Evolution
Securities Limited ("Evolution") as co-lead managers in relation to the Placing.


The Placing represents in aggregate approximately 18.0 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.


The Company will apply for admission of the Placing Shares to the Official List
of the UK Listing Authority and to trading on the London Stock Exchange's main
market for listed securities ("Admission"). It is expected that Admission will
take place and that trading will commence on 3 December 2009.


The Placing is conditional upon, inter alia, Admission becoming effective and
upon the passing of the resolutions (without amendment) at the general meeting
of the Company scheduled for 30 November 2009. The Placing is also conditional
on the placing agreement made between the Company, Merrill Lynch, Morgan
Stanley, Jefferies, Nomura and Evolution not being terminated. It is anticipated
that the settlement date will be 3 December 2009.


As announced on 4 November 2009, it is expected that the cancellation of the
trading in Afren's existing ordinary shares on AIM will take place at the same
time as the existing ordinary shares and the Placing Shares are admitted to the
Official List and to trading on the London Stock Exchange's main market for
listed securities, which is expected to occur on 3 December 2009, subject to the
receipt of the necessary approvals from the UK Listing Authority and the London
Stock Exchange.


Exercise of Founder Warrants


Afren also today announced the exercise, by certain shareholders including some
of the Directors (the "Founder Shareholders"), of 40,000,000 warrants over
Ordinary Shares (the "Founder Shares") issued pursuant to the Company's
Founders' Investment and Warrant Scheme, which are due to expire on 11 December
2009, raising approximately GBP15 million (US$25 million) (before expenses) for
the Company. The proceeds from the exercise of the warrants do not form part of
the proceeds of the Placing but will be used in conjunction with the net
proceeds of the Placing.


In order to finance the exercise of these warrants and to pay tax obligations
arising from the exercise, the Founder Shareholders agreed to sell 24.5 million
of the Founder Shares in the Placing at the Placing Price.


Capitalised terms used, but not defined in this announcement have the same
meanings as set out in the announcement released by the Company earlier today in
relation to the Placing.


cyril

will reach 0.90 today i reckon ,,,

much more important than cobras 1-2p prognostication is that (a) the placing was at only a modest discount and (b) has been readily absorbed ..... this gives much comfort, even if not necessarily substance to AFR's fairly immediate and promising future

would you hold or top up now??

topped already this morning. Think long term here.

cynic ,how much you think they be soon???

moi? .... i already hold more than enough .... shall probably trade some out in due course, but that is why i bought the last tranche

Have recently taken profit on 25% of my holding, but am happy to retain the rest.
Still haven't seen any broker targets over 110p from memory.

theres a mixture... one topped up, one not sure and one taken profit....... Great, lol
i'm a hold for now..

typical analysts, except they usually take all 3 stances in the same article

directors cashing in not a good sign.

unless i am much mistaken, that was always their idea behind this placing ...... the nigerians are of course a most honourable and honest bunch! ...... that said, i remain confident that AFR will bring home the bacon, easily within my lifetime - it has actually found very significant reserves, as is well published

cynic reserve estimates often disappoint.