Completion of Kurdistan Acquisition and Financing

Afren plc (AFR LN)

Completion of Kurdistan Acquisition and Financing

London, 2 November 2011 - Afren plc ("Afren" or the "Company") has completed the acquisition of a 60 per cent. participating interest in the Barda Rash PSC and 20 per cent. participating interest in the Ain Sifni PSC (together the "Acquisition"), located in the Kurdistan region of Iraq, and executed a corporate credit facility for up to US$200 million in connection with the Acquisition.

Further to the announcement of 27th July, Afren has completed the acquisition of interests in two contiguous Production Sharing Contracts ("PSCs") located in the Kurdistan region of Iraq, a 60 per cent. participating interest in the Barda Rash PSC and a non-operated 20 per cent. participating interest in the Ain Sifni PSC, for a total acquisition cost of US$588.25 million.

Afren has also executed a US$200 million secured term loan facility (the "Loan Facility") in connection with the Acquisition. The facility has a maturity of 18 months, with quarterly repayments commencing six months following the date of draw down. The Mandated Lead Arrangers of the facility are BNP Paribas and VTB Capital.

Highlights

The Acquisition represents a highly complementary extension of the Company's existing portfolio, and offers a combination of near term development upside and substantial low risk exploration potential.

u The Acquisition delivers independently certified 890 mmbbls net 2C resources and total net un-risked resources of 1,074 mmbbls

u Acquisition cost and funding

o Total acquisition cost of US$588.25 million (US$0.66 per 2C bbl) inclusive of US$81.0 million back costs and US$14 million towards 2011 capex related to Ain Sifni

o US$388.25 million of the acquisition cost due on completion and US$200 million in six months, to be funded using a combination of existing resources, including the US$200 million Loan Facility, US$184.5 million raised through the equity placing in July 2011 and reported cash at bank of US$320.4 million as at 30 June 2011, of which US$215 million is available for acquisitions

u A clear forward plan to develop Barda Rash and appraise Ain Sifni

o Progressive short term conversion of 2C resources into 2P reserves, upon submission of the Field Development Plan, expected in Q1 2012

o Phased development initially focusing on light oil reservoirs expected to deliver 75,000 bopd net to Afren within 5 years from Barda Rash alone

§ Phase 1: 15,000 bopd (gross) by end 2012

§ Phase 2: 35,000 bopd (gross) by end 2013

§ Phase 3: 125,000 bopd (gross) by end 2017

u Delivers low risk exploration upside to portfolio - 183 mmbbls net best estimate prospective resources

o Active E&A drilling campaign 2011 - 2012

u Complementary to Afren's core strengths developed in Nigeria

o Early mover advantage

o Geologically de-risked

o Fast track development solution

o Low risk E&A upside

o Afren strategically advantaged through historic relationships

o Positive political trends will eliminate valuation discount

u Team on the ground and in place to deliver work programme

o Reinforced in-house technical capability to successfully develop fractured carbonate reservoirs

Osman Shahenshah, Chief Executive of Afren, commented:

"We are delighted to have completed our recently announced Kurdistan acquisition and the associated term loan arranged by VTB and BNP Paribas. The acquisition covers the full E&P spectrum of development, appraisal and low risk exploration upside and is consistent with Afren's strategy of acquiring low cost barrels in areas of strategic advantage. The acquisition increases Afren's current 2P and 2C recoverable reserves base by over 700% at a cost of under US$1 per barrel. With our team already in place, we expect to generate an incremental 75,000 barrels of oil per day net to Afren within five years from the Barda Rash field alone."

Location map - a contiguous acreage position

http://www.rns-pdf.londonstockexchange.com/rns/1674R_-2011-10-31.pdf

Independent resource estimate

RPS Energy (RPS) has undertaken an independent assessment of contingent and prospective resources at the Barda Rash PSC and Ain Sifni PSC for Afren.

Further details on the background of the Acquisition, overview of the Kurdistan regional of Iraq and technical description of the Barda Rash PSC and Ain Sifni PSC can be found at www.afren.com/operations/kurdistan_region_of_iraq/.

Ends.

Notes to Editors

Afren is an independent upstream oil and gas exploration and production company listed on the main market of the London Stock Exchange and constituent of the Financial Times Stock Exchange Index of the leading 250 UK listed companies. Afren has a portfolio of 31 assets across 12 countries spanning the full cycle E&P value chain. Afren is currently producing from its assets offshore Nigeria and Côte d'Ivoire and holds further interests in the Kurdistan region of Iraq, Ghana, Nigeria, Côte d'Ivoire, Congo Brazzaville, the Joint Development Zone of Nigeria - São Tomé & Príncipe, Kenya, Ethiopia, Madagascar, Seychelles, Tanzania and South Africa. For more information please refer to www.afren.com