Afren Acquires Devon's Interests in Ghana and Angola

Angola Blocks
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Afren has entered into an agreement with Devon Energy to acquire its interests in Ghana and Angola, comprising a 95% working interest and operatorship of the Keta Block, offshore Ghana and a 15% working interest in Angola Block 16. The acquisition is subject to certain conditions precedent, including customary governmental approvals and, with respect to Block 16, the preferential rights of Sonangol.

Devon Energy is divesting its interests in the operated Keta Block offshore Ghana and Block 16 offshore Angola as part of the process to sell its assets in West Africa, as announced in January 2007.

Osman Shahenshah, Chief Executive of Afren, commented:

"We are delighted to have secured two highly prospective exploration blocks in Ghana and Angola offering multi-billion barrel oil resource potential. The Keta Block, offshore Ghana, is located east of the discoveries that were recently announced on the West Cape Three Points and Deepwater Tano blocks, whilst Angola Block 16 lies adjacent and on trend to 45 significant discoveries and notably has two existing discoveries, which are under appraisal and offer the potential for early development.

"The addition of the Keta Block and Block 16 to the portfolio will further increase the Company's exploration and appraisal drilling campaign for 2008, with a total of up to 4 additional wells.

We are on track to produce 15-20,000 barrels of oil per day from the Okoro Setu Project in Nigeria by mid-2008, and the entry into Ghana with the acquisition of an operated interest, as well as participation in Angola Block 16 marks an important strategic expansion of Afren's pan-African footprint." Acquisition of Devon Energy's interests in Ghana:

- The Keta Block is located offshore eastern Ghana, in the Volta River Basin, and covers 5,500 sq km;

- Devon has carried out extensive technical work in the area and identified primary targets, which are Upper Cretaceous deep-water sandstone reservoirs that have not been drilled in the block to date:

- The play type is very similar to that successfully proven by recent drilling to the west in Ghana in the Mahogany and Hyedua discoveries;

- Further technical evaluation of the re-processed seismic data is ongoing, and the expected mean potential reserves are expected to be circa 250-500 mmboe.

- The current license period expires at the end of 2008 and includes one commitment well:

- The license can be extended for a further six-year period, comprising three, two-year periods, each with a firm well commitment;

- GNPC (Ghana National Petroleum Corporation) has a 5% carried interest in the block.

- The Cuda prospect, which will be drilled in 2008, is covered by good quality 3D data, which has recently been re-processed with a marked improvement in data quality.

Acquisition of Devon Energy's interests in Angola

- Block 16 is situated offshore Angola within the Lower Congo Basin and covers an area of 4,936 sq km:

- Maersk is the operator (50%) and partners include Odebrecht (15%) and Sonangol (20% carried).

- It is an exploratory block with nine wells previously drilled and notably two discoveries:

- The Miocene and Oligocene discoveries, prospects, leads, and play types mapped within Block 16 are analogous to the fields in Blocks 15, 17, 31, and 32, adjacent to Block 16;

- The plays are considered to be highly prospective with several prospects and leads identified on Block 16; the expected mean potential reserves are expected to be circa 1,000 mmboe. The discoveries on Block 16 are under appraisal with the potential for early development.


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