Afren Adds to Production Portfolio with Cote d'Ivoire Acquisition
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."
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Company: Afren PLC more info
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