Investors' Room :: AFREN (AFR) Is this the next TULLOW??? - MoneyAM - Free Share Prices, Stock Quotes, Charts, News, Level2

niceonecyril - 04 Apr 2009 08:30

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Chart.aspx?Provider=EODIntra&Code=AFR&Si

boxerdog - 16 Dec 2009 08:27 - 646 of 3666

I fail to see it breaking out until " we splash the cash " from the recent placing and it is seen to be benefiting the company by increasing revenue. Just my VHO.

cobras - 16 Dec 2009 08:37 - 647 of 3666

i cant understand why the share prize drop? it should be already more than 1.15 imo.. maybe they want to shake off many holders before the share shoot off sky high

cynic - 16 Dec 2009 08:40 - 648 of 3666

analysts notes etc are all very fine, but it is news and action that spurs AFR and its brothers ..... assuredly there is a lot of development work scheduled for 2010 across the whole of west africa, so life could get interesting in a month or two or three (or four)

HARRYCAT - 16 Dec 2009 08:40 - 649 of 3666

Partly 'cos price of crude has dropped 12% this month so far.

goldfinger - 16 Dec 2009 08:46 - 650 of 3666

cyners I always thought that analyst notes carried news...... good or bad.

cynic - 16 Dec 2009 08:56 - 651 of 3666

no - just opinion, though it can indeed affect sp one way or another ...... i feel that the smaller oilies and similar need solid news to move the price for more than a day or two .... probably wrong again

goldfinger - 16 Dec 2009 09:12 - 652 of 3666

Yep would agree in this volatile market. Get a steaming bull as per earler in the year and you get more response. cheers.

goldfinger - 16 Dec 2009 14:51 - 653 of 3666

Strange MM action here at the moment.

Guess theyve been out on the shandy again.... roll on monday.

cobras - 16 Dec 2009 14:52 - 654 of 3666

share keep dropping !!!!!!!! whats goin on

halifax - 16 Dec 2009 15:24 - 655 of 3666

Christmas sale!

cobras - 21 Dec 2009 15:49 - 656 of 3666

yea buy 2 get 1 free !!!!!!!!!!!
this is the calm before the storm....
good luck everyone

niceonecyril - 29 Dec 2009 08:33 - 657 of 3666

Buy Afren - says James Faulkner of specialist small cap website WatsHot.com

Afren shares have performed well since my tip back in April - at 84.5p they are up 145% on my tipping price, but despite this cracking performance I still reckon the shares are a 'buy'. I believe we shall see Afren transform itself into a mid-tier producer by the end of 2010, and the geographical location of its assets will make other larger firms stand up and take notice. Afren is set to exit 2010 with daily production of 65,000 barrels per day which, to put things into context, would place it alongside the likes of Tullow Oil and ahead of Cairn Energy, Premier Oil and Dana Petroleum. As I write, the market cap of Tullow Oil stands at over 10 billion whereas that of Afren is just 753 million.

Afren was founded in 2004 with the aim of becoming the premier independent pan-African oil exploration and production company. Since its IPO on AIM in 2005 it has built up a portfolio of interests in six countries - Nigeria, Soa Tome & Principe JDZ, Gabon, Congo, the Ivory Coast and Ghana - and is currently producing at a rate of around 27,000 barrels of oil per day, mainly from its Nigerian interests. The company leverages the insight and local clout of its management team to ensure it has the upper hand in its chosen regions through close relationships with governments and through partnerships with indigenous corporations. This provides a low-risk operating model in what is usually considered to be a relatively high risk area. Headed by CEO and industry veteran Osman Shahenshah, the management team is top-notch for an E&P company of this size.

August saw the extension of Afren's partnership with Oriental Energy Resources Ltd and the signing of a joint venture with Addax Petroleum to develop the Okwok Field, offshore Nigeria and adjacent to the Ebok field. The move followed a collaborative agreement with Oriental to pursue assets in the region following the farm-in to develop Ebok with Oriental in March 2008. Under the Okwok farm-in agreement, Afren acquired 70% of Addax's 40% legal interest (28%) in the field. Afren will solely fund the drilling of one exploration or appraisal well, after which Afren and Addax will fund field development costs 70% and 30% respectively. Afren will be entitled to 70% of net field revenues (pre cost recovery), reverting to 56% (post cost recovery), subject to gross volumes lifted. Afren estimates that 70 million barrels of oil in place could potentially be produced from Okwok, with exploration having the pot ential to significantly add to the reserves base and synergies with the Ebok development reducing potential development costs e.g. via joint storage and export.

In September Afren's interims showed just how far the company has come in recent times. Revenues came in at $155.2 million, up from nil last year. Net cash from operations of $98 million was generated, enabling the company to bring net debt down from $287.4 million to $194.9 million. Afren is now on the cusp of transforming itself into a serious regional player. Over the next 12-18 months the firm is looking to prove-up 686 million million barrels through an aggressive appraisal programme. Ebok, which has potential upside of 151 million barrels, is due to undergo development drilling in the first half of 2010, while Okwok should follow in mid 2010. From here on out things get very big, very quickly! Buy at 84.5p.

cyril

cynic - 29 Dec 2009 08:53 - 658 of 3666

shame that glowing analysis was not put out by one of the major brokers, as it might then have had some affect on sp! ...... still, reality will eventually come out in the wash, and i am certainly more than happy to be a bit o'weight even at current level

halifax - 30 Dec 2009 17:22 - 659 of 3666

RNS grant of options to directors pretty optimistic lets hope they are realistic.

cynic - 30 Dec 2009 17:38 - 660 of 3666

have i misread something? ..... thought it said exercise price was 84.75

niceonecyril - 30 Dec 2009 17:53 - 661 of 3666

Yes, optimistic as in "we know what we have"?

cyril

niceonecyril - 30 Dec 2009 17:59 - 662 of 3666

edit: Thats 140% to achieve 20% 1st year,so nearer 120p.
cyril

halifax - 30 Dec 2009 22:12 - 663 of 3666

exactly must be pretty confident otherwise a pointless exercise.

cynic - 30 Dec 2009 22:34 - 664 of 3666

good .... much better than giving options at a discount as another company on this BB did the other day

niceonecyril - 31 Dec 2009 08:26 - 665 of 3666

Yes seems they're confident and to achieve and hold for 3 months the SP would probably hit much higher levels,certainly on an peak?
E-5 well took just 35 days to hit oil shows and a further 15 days total depth and completion, E-6 spudded on the 20thNov so come 4th Jan a
45 day tinescale. I think its safe to assume news is imminent?
cyril

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AFREN (AFR) Is this the next TULLOW??? (AFR)