The Board of Afren plc announces results for the year ended 31 December 2011. In 2011, we achieved the major milestone of first oil on the Ebok field development and progressed our Nigerian growth strategy. We also expanded our geographical footprint through the acquisition of assets in Nigeria, East Africa and the Kurdistan region of Iraq. Looking forward, we have a balanced portfolio combining production and development assets that we can leverage to internally fund our high impact exploration activities, underpinned by a capital structure that will support long term inorganic growth.
Osman Shahenshah, Chief Executive of Afren plc, commented:
“The 2011 results reflect the growing maturity of our business, with record net profit of US$125 million, up 172% on 2010 and an increase of 2P reserves by 132% to 185 mmboe. We have a made a successful start to our multi-well exploration campaign for 2012 with a significan new discovery offshore Nigeria. We have a visible production trajectory to 100,000 boepd by 2017 and a mature capital structure that will internally fund both organic and inorganic opportunities. Since the Company was listed in 2005, we have demonstrated strategic foresight and taken significant positions in Nigeria, East Africa and the Kurdistan region of Iraq, at a cost of entry highly accretive to our shareholders, coupled with a strong track record of operational delivery.”
Frontier areas with major play opening potential
Our portfolio of 11 East African assets covers an extensive surface area of 111,460 km2 on a gross basis, and all are located in basins with strong evidence of working hydrocarbon systems being present. Afren East Africa Exploration is focused on onshore rift basins and the deepwater Cretaceous/Tertiary play systems, which are geological settings that have yielded significant discoveries in Uganda, Sudan, Tanzania, Madagascar and Mozambique. A number of prospects have already been defined to date across the acreage, where the potential also exists to establish new hydrocarbon plays and additional prospectivity.
On 24 March 2011, Afren expanded its East African footprint with the acquisition of a 74% operated working interest in the Tanga Block, located offshore and onshore north-east Tanzania. The block lies south of, and is contiguous with, Afren’s 100% owned and operated blocks L17 and L18 in Kenya. It contains a southerly extension of the same coastal high and basin trough plays allowing us to leverage our regional expertise and knowledge.
The block is covered by 200 km of legacy 2D seismic data, and 1,200 km of good quality new 2D seismic data. Immediately post completion, Afren undertook and completed a 751 km shallow water 2D seismic programme. The results of this survey have been encouraging, and provide excellent definition of several large scale prospects and leads that have been identified to date, together with new zones of additional potential.
During Q4 2011, over 900 km of deepwater 2D seismic was acquired. This is currently being processed with final results expected at the end of the Q1 2012.
The Group plans to acquire 3D seismic data in the deepwater and to drill the Orpheus prospect in 2012 from a shallow water offshore location and is in the process of securing a jack up drilling rig capable of this work.