< "> 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

Might be worth waiting for their next trading statement, cash generation is the key to their success.

Am tempted to get back in at about this level. Oil price ($72.89) not helping any of these companies, but chart support is round about 85p.

AFR is moving upwards now...looking cheap at 93p

Normal service resuming here. I feel such a wally for topping up at 93p! 8-)

11m+ traded (96p)and oil back up over $76 i'm just wondering whether to replace my tin hat with a baseball cap?Seriously a little too soon to count the chickens but signs are looking good.
cyril

I'm out of my tank.

January 28, 2010

Afren Adds Another Piece To Its Planned Production Hub In Nigeria With Farm-In To OML115


Afren plc, the ambitious E&P stitching together a patchwork of development projects in Nigeria, has added to its footprint in the West African energy powerhouse by agreeing joint venture terms with Oriental Energy and Energy Equity Resources. Afren has paid US$6 million upfront to buy into OML115 in the south east of Nigeria, which lies adjacent to its existing Ebok and Okwok fields.
Afrens strategy is to develop a series of marginal or fallow oilfields to build a sizeable production business in Nigeria its business model is Addax Petroleum, which built a production base of more than 130,000 barrels per day and was acquired by Sinopec for over US$7 billion last year. With this strategy, there are two factors critical to success: picking the right indigenous partners and picking projects in close proximity to help understand the geological setting and deliver cost-savings during the development phase.

The latest acquisition meets both criteria: OML115 is adjacent to the companys Ebok/Okowk complex and Oriental Energy Resources has proved to be an effective partner in the companys Ebok and Okwok projects. The latter point is not to be underestimated: partner problems are notorious for derailing development projects in Nigeria as smarting investors in Tuskar Energy and more recently Equator Exploration can testify.

Under the terms of the farm-in agreement, Afren will act as technical adviser to London-based Energy Equity Resources and acquire a 32.5 per cent legal interest in the project. Afren will fund the drilling of one exploration well on the block, at an estimated cost of US$30 million, after which Afren and EER will jointly fund costs on a pro-rata basis (81.25 per cent and 18.75 per cent). During the cost recovery phase, Afren will have an effective economic interest of between 81.25 and 65 per cent. Following cost recovery by both Afren and EER, Afrens effective economic interest will revert to between 32.5 and 40.625 per cent of field revenues.

OML 115 lies in the prolific offshore eastern Niger Delta, surrounding the Afren/ Oriental-operated Ebok and Okwok development area and close to the giant Zafiro complex. The southern portion of the Okwok structure (Okwok South) extends into OML 115 and there is also additional prospectivity in the channelized Qua Iboe system. Afren reckons there is a gross unrisked resource potential of 270 million barrels based on work done to date.

Afren will be keen to chase down this potential: it has never knowingly hung around and has a track record of meeting or beating its own production goals, most recently exceeding its 2009 production expectations with average net working interest production of 21,000 bpd. In the near term, it plans to undertake a detailed study of the subsurface to finetune a location for an exploration well, which it intends to spud in the second half of this year.

Success here would mark a significant step forward in the companys ambitions to build a production hub in this part of the Niger Delta, where it recently had appraisal success with the Ebok field, confirming a 116 million barrel development project with upside of 182 million barrels. Okwok would take that upside to 304 million barrels and investors will have to wait until later in the year to get a feel for the potential in OML 115. At this point, the company can start to plan for joint storage and export operations not to mention shared drilling and other services, enhancing project economics. The close proximity of OML 115 to the Ebok - Okwok complex will provide a pre-existing export solution for any development on the block, said Afren CEO Osman Shahenshah.

The company is already making solid progress towards bringing Ebok onstream this year. It recently scored another reserves triumph on the Ebok field after the Ebok-6 appraisal well exceeded pre-drill expectations, finding 107 feet of gross oil pay and boosting the oil-in-place number for the D2 reservoir sands in the southern lobe of the field by a whopping 400 per cent. The success of Ebok-6 has lifted the total 2P recoverable reserve estimate to 116 million barrels, which means the three appraisal wells drilled by Afren since joining Oriental in the project in 2008 have added an incremental 91 million barrels of recoverable oil.

Ebok, which lies in shallow waters some 50 km offshore, was discovered in the late 1960s by Mobil and appraised in the 1970s. Afrens appraisal work has moved it from being a marginal discovery to a project in development, with the first phase development plan now underway. Production guidance points to year-end production of 15,000 bpd from the first phase development with another 20,000 bpd coming from an accelerated phase 2 development. With Okwok and any finds in OML115 still to be added to this tally, this could shape up to be a significant first production hub for the London-listed company.

this reads like oilbarrel or some similar self-promoting site ..... please clarify

Bought more AFR today...looking cheap at 81p.

Sorry blanche but I did try to warn you (post 734)

Anybody who thinks there is easy money in this market will get burnt.

reckon blanche is smarting now.....oh dear

perhaps he's already baled-out ..

;-)

Long term prospect for me. Iam here til end of 2012 when this company will be 3 - 4. And if i can find some more cash will be topping up again today. EASY MONEY!!!!

Looks like the recent recovery was a dead cat bounce? The real correction seems to be on us and we're now in bear country,which could last quite a time?
AFR looking cheap at this level but is this the low, who knows? Hang on in there as the fundimentals are the same, $50bo (average) breakeven(pre 15kbopd increase) and at present its $73bo. CHEAP STOCK is what they're after,don't let it be yours.
GLA
cyril

This is looking cheap with mighty serious production almost upon us !.

i certainly found it interesting/encouraging during my recent trip to UAE that a couple of the serious oilfield service companies were now looking seriously again at iraq ...... however, it is also worth noting that the insurance companies will still not touch the place, so anyone taking kit etc in there, does so at their own risk

Amities cynic ..Aww...you hijacked my thread you absolute cad !!. Only joking . !! Really good to see you my old friend. Havent been in UK for past 3 years . Made embarrasing absurd amount of cash shorting FTSE and CAC and DJ six months before property crash.And lets face it - you can only wear one shirt at one given time ect ect . Am in UK for publication of my book reg ex Shell geologist Mr. H's peak oil theory which was always my baby .As you can imagine the actual transcript only took a year to write; but took publishers almost 18 months to abridge and edit ,,hehe.... B/Chance lncidentally ,l was in Port harcourt about nine months ago in Nigeria for nearly three months and "Big Oil" are deserting the delta in droves looking for safer havens . You heard of jubilee field in which BP has a big stake ? or offcoast Angola where BP has a a nine out of nine strike rate yielding a huge amount of oil .? After visit to one of the FPV's -the size of three E/ towers- youd never believe there was a dearth of cheap oil. Reg. lraq .When USA initially blitzed the country they unleashed uranium tipped missiles on a number of heavily defended oilfields and in doing so utterly desroyed not only the fields but caused much suffering not only to the civilian population but to their own men . l have a plethora of disturbing data reg American troops returning home and fathering children with hideous deformities .The % are quite unbelievable Do you rememeber PET whose s/p leapt from 40p to 150p in a week when people thought they would get the dome site and the like. Well if truth be known BP were offered them at that very time .......took one look at the state of play and walked away. |Even when i was there a you dare not go near the place . Black sludge over a metre deep a full k/m from actual doghouse .Much of lraqs fields are in a similar state. Libya looking very interesting as are a number of other "hot spots" Will fill you in as soon as have settled . Much info would prefer to send personally rather than on here . ls that ok ? Same goes for Aldwick . @+ J

hi TFC; though you had died, but clearly the malaria pills worked for you ..... while your comment re nigeria could be true, i think you would find any exodus was only as far as Pointe Noire which, if memory serves me correctly, is set up to service the oilfields in DRC (of course) as well as Angola and off-shore Ghana

feel free to e-mail me ..... once received via the system here, i'll give you a direct and more sensible link

It's a ghost.....!.

China would happily take over the fields in Nigeria if the 'big oil' are deserting.