Acquisition

13th Nov 2007 07:02

Afren PLC13 November 2007 Afren plc (AIM: AFR) Acquisition of Devon Energy's interests in Ghana and Angola London, 13 November 2007 - Afren plc ("Afren" or "the Company") announces thatit has entered into an agreement with Devon Energy to acquire its interests inGhana and Angola, comprising a 95% working interest and operatorship of the KetaBlock, offshore Ghana and a 15% working interest in Angola Block 16. Theacquisition is subject to certain conditions precedent, including customarygovernmental approvals and, with respect to Block 16, the preferential rights ofSonangol. Acquisition of Devon Energy's interests in Ghana • The Keta Block is located offshore eastern Ghana, in the Volta RiverBasin, and covers 5,500 sq km • Devon has carried out extensive technical work in the area andidentified primary targets, which are Upper Cretaceous deep water sandstonereservoirs that have not been drilled in the block to date • The play type is very similar to that successfully proven by recent drilling to the west in Ghana in the Mahogany and Hyedua discoveries • Further technical evaluation of the re-processed seismic data is ongoing, and the expected mean potential reserves are expected to be circa 250-500 mmboe • The current licence period expires at the end of 2008 and includesone commitment well • The licence can be extended for a further six-year period, comprising three, two-year periods, each with a firm well commitment • GNPC (Ghana National Petroleum Corporation) has a 5% carried interest in the block • The Cuda prospect, which will be drilled in 2008, is covered by goodquality 3D data which has recently been re-processed with a marked improvementin data quality Acquisition of Devon Energy's interests in Angola • Block 16 is situated offshore Angola within the Lower Congo Basin and covers an area of 4,936 sq km • Maersk is the operator (50%) and partners include Odebrecht (15%) and Sonangol (20% carried) • It is an exploratory block with nine wells previously drilled and notably two discoveries • The Miocene and Oligocene discoveries, prospects, leads, and play types mapped within Block 16 are analogous to the fields in Blocks 15, 17, 31, and 32, adjacent to Block 16 • The plays are considered to be highly prospective with several prospects and leads identified on Block 16; the expected mean potential reserves are expected to be circa 1,000 mmboe. The discoveries on Block 16 are under appraisal with the potential for early development Devon Energy is divesting its interests in the operated Keta Block offshoreGhana and Block 16 offshore Angola as part of the process to sell its assets inWest Africa, as announced in January 2007. Osman Shahenshah, Chief Executive of Afren, commented: "We are delighted to have secured two highly prospective exploration blocks inGhana and Angola offering multi-billion barrel oil resource potential. The KetaBlock, offshore Ghana, is located east of the discoveries that were recentlyannounced on the West Cape Three Points and Deepwater Tano blocks, whilst AngolaBlock 16 lies adjacent and on trend to 45 significant discoveries and notablyhas two existing discoveries, which are under appraisal and offer the potentialfor early development. "The addition of the Keta Block and Block 16 to the portfolio will furtherincrease the Company's exploration and appraisal drilling campaign for 2008,with a total of up to 4 additional wells. We are on track to produce 15-20,000 barrels of oil per day from the Okoro SetuProject in Nigeria by mid-2008, and the entry into Ghana with the acquisition ofan operated interest, as well as participation in Angola Block 16 marks animportant strategic expansion of Afren's pan-African footprint. " 13 November 2007 Maps identifying the location of the Blocks in Ghana and Angola are available onthe Company's website: www.afren.com Enquiries: Afren plc +44 20 7451 9700Osman Shahenshah Chief ExecutiveEvert Jan Mulder Chief Operating OfficerGalib Virani Investor Relations Jefferies International Limited +44 20 7029 8000Toby HaywardOliver Griffiths Tristone Capital Limited +44 20 7355 5800Simon Ashby-RuddMajid Shafiq Pelham Public Relations +44 20 7743 6673James HendersonAlisdair Haythornthwaite This information is provided by RNS The company news service from the London Stock Exchange

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