Afren plc has completed the acquisition of Devon Energy Corporation's interests in Cote d'Ivoire and Afren has received full Government and regulatory approvals.
- The acquisition comprises existing production (47.96% participating interest and operatorship of Block CI-11), development (80% participating interest and operatorship in Block CI-01) and a 100% interest in the onshore Lion Gas Plant ("LGP").
- Adjusted consideration for the acquisition of US $164 million is fully funded through a debt financing package arranged by BNP Paribas and has an effective date of 30th June 2007 (the "effective date").
- The acquisition will further increase Afren's existing production base, cashflow and reserves:
- Current net daily volumes of approximately 5,200 WI barrels of oil equivalent per day from upstream oil and gas production and NGL extraction.
- Combined net 2P reserves for Block CI-01 and Block CI-11 interests of approximately 28 million barrels of oil equivalent at the effective date.
- The portfolio offers significant upside potential, including additional volumes accessed when a low risk wireline program and rig based workover program on Block CI-11 are carried out in 2009, and existing proved reserves on Block CI-01 are developed in a program commencing in 2009.
- Targeting total net daily production volumes in excess of 10,000 WI boepd by 2010 from the upstream assets and the LGP.
- Afren has taken on operatorship, together with Afren’s partner PETROCI, the National Oil Company of Côte d’Ivoire, of a fully integrated oil and gas project and added a competent and skilled local workforce of 100 employees
Osman Shahenshah, Chief Executive of Afren, commented, "We are delighted to complete the acquisition in Cote d'Ivoire, which represents a step change addition to Afren's portfolio of 17 assets in 7 countries, adding existing production, proved reserves, development upside and ownership of a strategically important gas processing plant.
"Plans are underway to grow both the existing production and reserves through a combination of near and medium term development. We look forward to strengthening our partnership with PETROCI to further build our position in Cote d'Ivoire."