General Meeting - Chairman's statement

Afren plc (AFR LN)

General Meeting - Chairman's statement

London, 20 May 2013 - At today's General Meeting Osman Shahenshah, on behalf of the Chairman, opened the meeting with the following statement:

"Our vision to be the leading independent upstream Exploration and Production Company in each of the areas we operate is underpinned by a clear and consistent strategy - one that is designed to provide a framework for sustainable long-term growth in value for our shareholders across the Exploration and Production value chain.

Central to achieving our vision has been our success and commitment to Nigeria where we have strategically positioned ourselves as the partner of choice to assist in monetising the country's extensive remaining resources. Having successfully delivered on two high quality offshore Nigerian development projects in Ebok and Okoro, together with six further appraisal and exploration projects, Afren now has a track record of delivering projects in record time with exceptional rates of return. 

The proposed acquisition of shares representing 10.4 per cent. of the issued share capital of First Hydrocarbon Nigeria Company Limited ("FHN") (the "Acquisition") will allow Afren to further strengthen its position onshore Nigeria and will enable Afren to immediately consolidate its holding of FHN's reserves and production as a subsidiary. The Acquisition will result in Afren achieving a material increase in Independent Audited net Proved and Probable Reserves from 209.8 mmboe as at 31 December 2012 to 270.3 mmboe, representing an increase of approximately 29%. 

Following the publication of our Q1 results on 16 May 2013, I am delighted to say that Afren remains on course to record another strong year. We have achieved a year-on-year increase in net production of 14% and are on-track to deliver full year net working interest production of between 40,000 - 47,000 boepd. Supported by a growing production base, we are well positioned to optimally explore and develop our high quality portfolio and continue to create substantial value for our shareholders."

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Notes to Editors

Afren plc

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 28 assets across 12 countries spanning the full cycle E&P value chain. Afren is currently producing from its assets in Nigeria, Côte d'Ivoire and the Kurdistan region of Iraq and holds further interests in Ghana, Nigeria, Côte d'Ivoire, the Kurdistan region of Iraq, 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.