Visible Production of 65,000 bopd by the end of 2010!!!

***15th April - RESULTS OF PLACING*** http://www.afren.com/uploads/MicrosoftWord090415PricingAnnouncementFINAL.pdf http://www.afren.com/uploads/MicrosoftWord090415PricingAnnouncementFINAL.pdf

***6th April - FINAL RESULTS*** http://www.afren.com/uploads/MicrosoftWord2008PrelimResults060409FINAL.pdf

***26th March - EBOK RESULTS*** http://uk.advfn.com/p.php?pid=nmona&cb=1238058544&article=37029195&symbol=L%5EAFR

26th March - Osman Shahenshah, Chief Executive of Afren, commented: "The exceptional results from the Ebok appraisal drilling, well ahead of pre-drill expectations, confirm a material 52 million barrels recoverable oil development with upside potential of up to 106 million barrels. The Field Development Plan which will be submitted shortly by the partners for approval, encompasses a 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. This represents an outstanding success for the Ebok field partners and a transformational outcome for Afren. With a visible exit production rate of circa 65,000 bopd by end 2010, this ranks Afren firmly towards the top end of the London quoted established independent producers."

(27th March)The announcement brings forward Afren's production profile and cashflow dramatically," said Merrill Lynch, as it increased its 2010 earnings-per-share forecast by 62 per cent.

(27th March) - Evolution Securities' target price is 130p.

26th March - UBS Investors Presentation Must Read - New Afren Presentation http://www.afren.com/uploads/UBSInvestorPresentationFinal260309(1).pdf

ROB's DRAFT FIGURES FOR 2009 REVENUE (This has been put together quickly based on the sale prices from 2008 against my view on expected production for 2009 - http://spreadsheets.google.com/ccc?key=p9lm8F4ZI_wDQuPMx_8O_ZQ - Any suggestions on calculations let me know robwoodt@gmail.com)

In a Nut Shell

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

AFREN WEBSITE LATEST NEWS

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Wednesday, February 4, 2009

My Investor Relations Update - 4th Feb

Thank you for your recent enquiry submitted through the Afren website.

In response to your question we commenced appraisal drilling at Ebok on 24th November 2008 using the Trident IV jack-up rig.

We completed appraisal drilling operations in line with our stated timetable on 1 February 2009.

We are pleased to confirm that we successfully achieved all of our pre-drill objectives which included establishing the areal distribution of the reservoir, reservoir properties and acquiring a full suite of technical data. Interpretation and analysis of the appraisal results is ongoing and we are awaiting the independent analysis and certification of this, after which a further announcement will be made on this very exciting project and the timing of the development.

You will note from the Okoro development that the Company has always maintained a conservative approach to releasing robust information to our shareholders.

Furthermore we are pleased to provide you with an update on operations and performance across the rest of the portfolio:

Ø The group is producing profitably at a total rate of approximately 27,000 working interest boepd of oil, gas and natural gas liquids.

Ø Okoro is now producing at rates of 22,000 bopd, marking a significant (+47%) out-performance versus pre-development guidance of 15,000 bopd.

Ø Production in Cote d'Ivoire remains stable at approximately 5,200 working interest boepd. Since Afren assumed control of the assets gross production has increased by circa 700 boe/d.

Ø The company remains fully funded through its budgeted work programme and has a robust financial platform and strong capital discipline.

Ø Afren will participate in one firm exploration well, at the La Noumbi permit in Congo, during H1 2009 and is continuing to aggressively pursue several highly attractive acquisition opportunities.

On fundamentals the company has never been stronger or better positioned to capitalise on and deliver materially value accretive portfolio growth.

Should you have any further questions please do not hesitate to contact us.
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