An application has been made to AIM for the new ordinary shares to be admitted and it is expected that trading will commence on 21 June 2007. The number of shares in issue following the Placing will be 264,872,553.
The proceeds will be used in part for the Okoro Setu development, in addition to appraisal and development drilling on the Ofa Field and other opportunities. The Company remains on track for its production target of 15,000 - 20,000 barrels per day in mid 2008 from the Okoro Setu development:
--Fully underwritten US$200 million debt facility in place --Government approval for the Field Development Plan has been received --FPSO contract has been secured --Development drilling scheduled to commence in H2 2007 with the Global Santa Fe Adriatic VI drilling unit contracted for a nine month program --Independent reserves audit estimates 1P oil reserves of 25 mmbbls and 2P reserve level of 32 mmbbls.
The Ofa Field is an undeveloped oil field located onshore in the Northern Niger Delta, which has the potential to increase the current production target in 2008. In May 2007 Afren announced that the Company had farmed into the field, which Gaffney, Cline & Associates recently estimated as having mean Stock Tank Oil Initially in Place of up to 150 mmbbls. The forward program includes a well test, which involves re-entry of the Ofa-1 discovery and testing four out of the eight identified oil bearing zones.
Afren will also be participating in exploration wells on the Themis Marin license in Gabon and the high impact La Noumbi license in the Republic of Congo (Brazzaville) during the year.
Osman Shahenshah, Chief Executive of Afren, commented:
"It is very pleasing to see such strong institutional support from both existing and new shareholders. Afren remains on track for 15,000 to 20,000 barrels per day by mid 2008, with the potential to expand the production target from the Ofa development."
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