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Afren Announces First Oil from the Okoro Setu Project

Source: www.gulfoilandgas.com 6/10/2008, Location: Africa

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Afren and its partner Amni International Petroleum Development Company ("AMNI") announced First Oil from the flagship Okoro Setu Project, located in OML 112, in shallow water offshore Nigeria. In June 2006, Afren announced the agreement signed with AMNI, a well established indigenous oil & gas company, for participation in the development of the Okoro Setu Project.

During 2007 the partners received approval of the Field Development Plan and secured a Floating Production Storage and Offtake Vessel (“FPSO”).

In Q1 2008, development drilling commenced from a subsea template using Transocean’s Adriatic-6 jack-up rig. The 10-point fixed mooring system for the FPSO vessel was installed in January and the Armada Perkasa arrived in March 2008 and was hooked up to the anchor system.

In May 2008, the wellhead platform was installed and flowline connections are progressing.

Initial production from the first of two wells drilled to date has commenced at a rate in excess of 3,000 barrels of oil per day (bopd) of 27 API gravity oil, which is in line with expectations.

The remaining wells will be batch drilled and the Company is on track to achieve full production of 15,000 bopd in Q3 2008.

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