Oil Producer Afren's 1Q Output Below Target
LONDON, May 20 (Reuters) – London-listed oil explorer Afren Plc reported first-quarter net production of 35,465 barrels of oil per day (bopd), lower than its target of 40,000 bopd this year.
Shares in the company fell as much as 6 percent in morning trade, making the stock the top percentage loser on the FTSE-250 Midcap Index.
"We see the results on the negative side," Oriel Securities analyst Dragan Trajkov said in a note to clients.
Afren, which is targeting double-digit production growth over the next five years, has its main assets in Nigeria, but it also operates in Kenya and Kurdistan.
The company also reported a 30 percent fall in first-quarter sales revenue due to a reduced share of production and liftings from its Ebok field in Nigeria and lower realised average oil prices.
Revenue from continuing operations fell to $269 million from $386 million a year earlier.
Average net production at Ebok – its main producing asset – fell to 25,971 bopd down from 33,513 bopd a year earlier.
The oil explorer and producer said analysis of 3D seismic data of its Ogo oil field - the world's third largest discovery of 2013 - would begin shortly.
"At first glance the (first-quarter) update appears to be in-line. However, factoring in the payments to field partners drives a reduction in our valuation, making the shares less attractive," Canaccord Genuity analysts said in a note and downgraded the stock to "hold" from "buy".
Shares in Afren were trading down 5 percent at 146.4 pence at 0910 GMT on the London Stock Exchange.
(Reporting by Karolin Schaps and Roshni Menon; Editing by Gopakumar Warrier)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Former Afren Execs Get as Much as Six Years in Prison (Oct 29)
- Afren Execs Guilty of Scheme to Replace Lost Salary (Oct 24)
- Lekoil Acquires Afren's Stake in the Ogo Field Offshore Nigeria (Dec 01)