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First Oil from Okoro Setu Pro

10th Jun 2008 07:00

RNS Number : 3302W

Afren PLC

09 June 2008

Afren plc (AIM: AFR)

Afren announces First Oil from the Okoro Setu Project

London, 10 June 2008 - Afren plc ("Afren" or the "Company") and its partner Amni International Petroleum Development Company ("AMNI") are pleased to announce First Oil from the flagship Okoro Setu Project, located in OML 112, in shallow water offshore Nigeria.

Highlights

In June 2006, Afren announced the agreement signed with AMNI, a well established indigenous oil & gas company, for participation in the development of the Okoro Setu Project.

During 2007 the partners received approval of the Field Development Plan and secured a Floating Production Storage and Offtake Vessel ("FPSO").

In Q1 2008, development drilling commenced from a subsea template using Transocean's Adriatic-6 jack-up rig. The 10-point fixed mooring system for the FPSO vessel was installed in January and the Armada Perkasa arrived in March 2008 and was hooked up to the anchor system.

In May 2008, the wellhead platform was installed and flowline connections are progressing.

Initial production from the first of two wells drilled to date has commenced at a rate in excess of 3,000 barrels of oil per day (bopd) of 27º API gravity oil, which is in line with expectations.

The remaining wells will be batch drilled and the Company is on track to achieve full production of 15,000 bopd in Q3 2008.

Osman Shahenshah, Chief Executive of Afren, commented:

"I am delighted that Afren has achieved its first organic production, a key milestone in the Company's history that underlines its operational strengths and technical capabilities.

"We have worked in close cooperation with our indigenous partner AMNI International Petroleum Development Company and it is testament to our relationship that we have delivered First Oil in just two years since announcing the agreement to develop the Okoro Setu Project. We look forward to accelerating the development of further undeveloped reserves in Nigeria together with our indigenous partners."

Sani Bello, Chairman of AMNI, commented:

"We are very pleased to have delivered First Oil on the Okoro Setu Project. This is a significant achievement for the AMNI/Afren partnership and represents an important contribution to the rapidly expanding indigenous oil & gas sector. "

10 June 2008

Enquiries:

Afren plc		+44 20 7451 9700
Osman Shahenshah	Chief Executive
Galib Virani	Investor Relations

Jefferies International Limited		+44 20 7029 8000
Toby Hayward
Oliver Griffiths

Pelham Public Relations		+44 20 7743 6676
James Henderson
Alisdair Haythornthwaite

Note

In accordance with the AIM Rules, the technical information in this release has been reviewed and signed off by Mr Iain Wright, who is Director of Technical at Afren Plc and has over 25 years relevant experience within the sector. He consents to the information in the form and context in which it appears. The Company estimates its reserves in accordance with the guidelines and definitions of the Society of Petroleum Engineers / World Petroleum Congress ("SPE/WPC") reserves classification (March 1997) using accepted engineering principles.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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