Key Highlights
Strong operating cash flow driven by a 13 per cent. year-on-year increase in net production to 47,653 boepd; on track for full year guidance of 40,000 - 47,000 boepd
Continued E&A success
- Play opening discovery at OPL 310, offshore Nigeria
- DST programme at Simrit-2 on the Ain Sifni PSC, Kurdistan region of Iraq complete, with aggregate flow rates of 19,641 bopd achieved. Well being prepared for Extended Well Test operations
- Completion of drilling at Simrit-3. Multi-zone testing programme underway to confirm the resource potential and the eastern extent of the Simrit anticline
- Active exploration programme with ongoing Ogo-1 sidetrack and upcoming Ufon-1 well on OML 115 in Nigeria
Active portfolio management
- Completion of farm-out (subject to Nigerian Ministerial Consent) of a 30 per cent. economic interest in OPL 310, offshore Nigeria, to Lekoil Limited
- Acquisition by FHN of 16.9 per cent. economic interest in OML 113. Synergies expected with OPL 310 development
- Agreement for sale of CI-11 block and Lion Gas Plant for total consideration of US$26.5 million, of which US$15.3 million will be settled in cash
- Proposed relinquishment of JDZ Block 1, Nigeria São Tomé & Príncipe
Strong balance sheet and financial flexibility
- Cash at bank US$588 million (1H 2012: US$497 million); Net debt, excluding finance leases US$590 million (1H 2012: US$679 million). Full year capex guidance revised to US$650 million from US$620 million
Commenting today, Osman Shahenshah, Chief Executive of Afren plc, said:
"Afren continued to deliver strong operational results during the first half of 2013. We recorded a year-on-year increase in underlying net production of 13 per cent. principally from our green field developments offshore Nigeria. Our exploration campaign continues to deliver results, following the play opening discovery announced at OPL 310 offshore Nigeria, where further exploration drilling is ongoing. Elsewhere, we are continuing with exploration drilling and testing operations at the Ain Sifni PSC in Kurdistan. With high quality production underpinning both our strong financial position and exploration programme, we are well placed to realise numerous growth opportunities over the remainder of this year."
