In a nut shell Mkt Cap Circa £170m, Producing Circa 27,000 bopd with so far circa 90mmobe confirmed(ebok new reserves included), SP hammered from 180p to 14p, since bounicing to 40p (with much more to go in my opinion - patience required), the company have never been in better shape and have $500 million strategic alliance with Sojitz for investments and aquisitions
Results of Ebok field **just released** smash ecpectations - material 52 million barrels recoverable oil development with upside potential of up to 106 million barrels, fast track Early Production System that will deliver up to 25,000 bopd in early 2010, with a full field development achieving up to 50,000 bopd by end 2010, visible exit production rate of circa 65,000 bopd by end 2010
altough the company have circa $350 million of debt (to be confirmed in results) this is being paid off from 90% of revenue from Okoro (currently producing 22,000 bopd), so debt is ringfenced against reserves, prefect. To compliment this the producing fields have oil hedged at $55 & $83.
Afren have great management, an impressive track record and are aiming for a WI production rate of 65,000 bopd by the end of 2010. Long term when the economy turns a corner and the price of oil rise (and it will) this company will be printing money, a rare, confident hold for long term returns, DYOR!
Ebok results are double what where expected and as quoted we could have "visible exit production rate of circa 65,000 bopd by end 2010"!!!
IMPORTANT
If you read nothing else on this blog look at the recent presentation at
http://www.afren.com/uploads/UBSInvestorPresentationFinal260309(1).pdf
and the recent Ebok Update
http://uk.advfn.com/p.php?pid=nmona&cb=1238222104&article=37029195&symbol=L%5EAFR