Gulf Oil and Gas accountACCOUNT

Afren Acquires Additional Interest in First Hydrocarbon Nigeria

Source: www.gulfoilandgas.com 7/5/2013, Location: Africa

Afren plc announces that following the recent shareholder approval on the recommended acquisition of a 10.4 per cent. interest in First Hydrocarbon Nigeria ("FHN"), it is pleased to confirm the acquisition of an additional 23.3 per cent. beneficial interest in FHN.

The acquisition of an additional 33,966,333 shares, representing approximately 23.3 per cent. of the outstanding share capital of FHN, from a combination of Capital Alliance Energy Nigeria Limited ("CAPE"), Earl Act Global Investments Limited and other FHN shareholders (excluding any related parties), has been undertaken at an average price of US$3.10 per share in cash (the "Further Acquisition"). Of the total consideration (US$105.4 million) for the Further Acquisition, US$22 million is payable on the first anniversary and US$22 million on the second anniversary of the acquisition date, in each case to CAPE.

Afren has also entered into a Put/Call option with Earl Act Global Investments Limited for a further 18,299,993 million FHN shares (representing a further 12.5 per cent. of the outstanding share capital of FHN) at a price of US$3.32 per share. These options may only be exercised after 24 months and for a period of 6 months thereafter.

In addition, as separately announced, all Afren PDMR holdings in FHN have been sold to CSL Stockbrokers (Nigeria), and the Afren PDMRs have undertaken to use the net proceeds to acquire Afren shares in the public markets.

FHN has a 45 per cent. interest in the OML 26 portfolio of assets onshore Nigeria. The portfolio of assets holds two producing fields (Ogini and Isoko), with 2P oil reserves estimated at 134.6 mmboe and gross contingent resources estimated at 68.0 mmboe as at 31 December 2012, independently certified by Netherland Sewell & Associates International, and three proven but undeveloped fields (Aboh, Ovo and Ozoro), with gross contingent resources estimated at 144 mmboe and a further 615 mmboe of gross unrisked prospective resources on the block across multiple prospects.

The current forward work programme for FHN is expected to increase production from Ogini and Isoko to more than 40,000 bopd through a phased development process by 2015 and ultimately take production to 50,000 bopd. In addition, preparatory work is on-going for the appraisal programme on the proved but undeveloped fields and exploration of the significant undrilled upside potential on the block.

Osman Shahenshah, Chief Executive of Afren, commented:
"As previously highlighted, we are delighted to be increasing our indirect beneficial ownership of OML 26 onshore Nigeria and further simplifying the FHN shareholder base. Since FHN's acquisition of a 45% interest in the OML 26 portfolio of assets, 2P reserves have increased by 231% to 134.6 million barrels, with significant undrilled upside remaining. The additional acquisition is significantly accretive to our shareholders and we look forward to working closely with NPDC to further increase production and undertake an extensive appraisal and exploration programme on the portfolio."

For more information about related Opportunities and Key Players visit West Africa Projects

Mergers and Acquisitions News in Nigeria >>

United States >>  2/6/2019 - Air Liquide announces that Airgas has signed a definitive agreement to acquire TA Corporate Holdings, Inc. (“Tech Air”), a large independent distribut...
Russia >>  2/5/2019 - Tenaris S.A. will form a joint venture with PAO Severstal to build a welded pipe plant to produce OCTG products in the Surgut area, West Siberia, Russ...

Norway >>  2/1/2019 - Equinor has completed the EUR 400 million acquisition of Danske Commodities (DC) announced in July 2018, after having received all required regulatory...
United States >>  2/1/2019 - Emerson (EMR) has completed the purchase of Intelligent Platforms from General Electric (NYSE:GE). The addition of Intelligent Platforms programmable ...

Turkey >>  1/31/2019 - Mitsubishi Heavy Industries Thermal Systems, Ltd., a Group company of Mitsubishi Heavy Industries, Ltd. (MHI), has concluded an agreement with the sha...
Malaysia >>  1/29/2019 - Sapura Energy Berhad has received shareholders approval for the 50:50 strategic partnership with Austria’s OMV Aktiengesellschaft. In a statement, the...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Nigeria Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 |

Oil & Gas Projects in Nigeria >>

More News

Related Links

Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.