Some Nigeria’s oil fields have increased Afren Plc oil output by 13 per cent. The latest report of the firm stated that the period witnessed a significant increase in output from the Ebok and Okoro fields, offshore Nigeria.
The report stated that: “The Group’s financial results reflect the consolidation of First Hydrocarbon Nigeria Company Limited (FHN) following the completion of the acquisition of an additional beneficial interest in FHN in the period and the early adoption of IFRS 10(1).
It stated that the post period end, Afren further increased its beneficial interest in FHN and commenced sales from the Barda Rash field in the Kurdistan region of Iraq.
The report stated that on the exploration front, the oil discovery at OPL 310 opens a new oil basin in an under-explored region with targeted resources believed to be in excess of pre-drill estimates (78 mmboe).
It stated that: “We continue to make good progress on our exploration and appraisal (E&A) work programme targeting opportunities across the portfolio.
The report stated that prior period results have been restated to reflect the consolidation of FHN, following the adoption of IFRS 10 and IFRS 11.
It stated that strong operating cash flow driven by a 13 per cent. year-on-year increase in net production to 47,653 boepd; on track for full year guidance of 40,000 – 47,000 boepd
The report stated that completion of drilling at Simrit-3. Multi-zone testing programme underway to confirm the resource potential and the eastern extent of the Simrit anticline. It stated that: “Active exploration programme with ongoing Ogo-1 sidetrack and upcoming Ufon-1 well on OML 115 in Nigeria.
The report has it that: “Completion of farm-out (subject to Nigerian Ministerial Consent) of a 30 per cent. economic interest in OPL 310, offshore Nigeria, to Lekoil Limited.
It stated that the acquisition by FHN of 16.9 per cent. economic interest in OML 113. Synergies expected with OPL 310 development.
The report stated that: “Agreement for sale of CI-11 block and Lion Gas Plant for total consideration of US$26.5 million, of which US$15.3 million will be settled in cash. The Chief Executive of Afren Plc, Mr. Osman Shahenshah said that: “Afren continued to deliver strong operational results during the first half of 2013. We recorded a year-on-year increase in underlying net production of 13 per cent. principally from our green field developments offshore Nigeria.
He remarked that: “Our exploration campaign continues to deliver results, following the play opening discovery announced at OPL 310 offshore Nigeria, where further exploration drilling is ongoing. Elsewhere, we are continuing with exploration drilling and testing operations at the Ain Sifni PSC in Kurdistan. With high quality production underpinning both our strong financial position and exploration programme, we are well placed to realise numerous growth opportunities over the remainder of this year.”
Afren is an independent upstream oil and gas exploration and production company listed on the main market of the London Stock Exchange and a constituent of the Financial Times Stock Exchange Index of the leading 250 UK listed companies.
Afren has a portfolio of assets spanning the full cycle E&P value chain. Afren is currently producing from its assets in Nigeria, Côte d’Ivoire and the Kurdistan region of Iraq and holds further exploration interests in Ghana, Nigeria, Côte d’Ivoire, the Kurdistan region of Iraq, Congo Brazzaville, the Joint Development Zone of Nigeria – São Tomé & Príncipe, Kenya, Ethiopia, Madagascar, Seychelles, Tanzania and South Africa.
Information from National Mirror was used in this report.