Afren Evaluating Restatement of Accounts; Output Falls


Oct 30 (Reuters) – British oil producer Afren Plc said it was evaluating the need to restate historic financial information after the completion of an independent accounting review of some unauthorised payments.

Afren shares fell as much as 5.4 percent to 88.20 pence, their lowest since January 2012, in early trade on the London Stock Exchange.

Earlier this month, the oil company had fired its CEO and three other top executives after an independent review into unauthorised payments found evidence of "gross misconduct".

Law firm Willkie Farr and Gallagher, which conducted the review into the transactions, engaged accounting firm KPMG to conduct an accounting review as well. KPMG submitted its report on Oct. 28. Afren did not disclose details of the KPMG report.

Afren reported a 35 percent fall in average net production for the nine months to Sept. 30, hurt by bad weather that caused operational issues at its Ebok oilfield and extended downtime at its OML 26 project in Nigeria.

The company said it expected net production for the year at the lower end of its forecast of 32,000 to 36,000 bopd. Afren reduced its output view by 20 percent in August, after accounting for losses from suspended operations at Barda Rash in Iraqi Kurdistan.

(Reporting by Abhiram Nandakumar in Bangalore; Editing by Gopakumar Warrier)


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.