20th Sep 2006 07:02
Afren PLC20 September 2006 Afren plc (AIM: AFR) Nigerian Rig Contract and Okoro / Setu Project Update London, 20 September, 2006 - Afren plc ("Afren" or "the Company") announces thatits Nigerian subsidiary Afren Energy Resources Limited ("AER") has signed adrilling contract for the Global Santa Fe Adriatic VI Jack-up drilling rig tocarry out development drilling on the Okoro / Setu fields offshore Nigeria. Afren announces that AER has signed a nine month rig contract with theGlobalSantaFe International Drilling Corporation, commencing in August 2007, tocarry out an extensive drilling programme to complete development of the Okoroand Setu Fields in OML 112, offshore Nigeria. This will allow the drilling ofthe production and injection wells required to complete the Okoro / Setudevelopment programme. Okoro and Setu are proved undeveloped oil and gas fields located in OML 112 inshallow water offshore Nigeria, which were originally awarded to AMNIInternational Petroleum Development Company Limited ("AMNI") in 1993 as part ofthe Nigerian government's indigenous licensing program. In June 2006 Afrenannounced the signing of a Financing and Production Sharing and TechnicalServices Agreement with AMNI. The fields have combined estimated recoverablereserves of 35 to 60 million barrels ("MMbbls") and are expected to flow inexcess of 15,000 barrels of oil per day ("bopd") when full combined productionis achieved. First oil is expected in early 2008. Project Update The Seadrill 7 jack-up rig is being mobilized to commence appraisal drilling onOkoro / Setu development at the end of September 2006. The planned programmeincludes an appraisal well to test upper and lower reservoirs at Okoro and are-entry and re-drill of the Setu-1 well. The Adriatic VI drilling unit will be utilized for a 9 month programme startingin August 2007 to carry out the development drilling on the Okoro and Setufields. First production is expected in early 2008. The decision to use the Adriatic VI drilling unit on the Okoro / Setudevelopment will maximise value on Afren's most important asset. Discussions arecurrently ongoing to secure an additional rig contract for the Ogedehdevelopment. Overall, the Company is targeting production of 15,000 to 20,000 bopd by 2008from its existing portfolio. Brian O'Cathain, Chief Executive, commented: "We are pleased to have secured such an excellent drilling unit in a difficultmarket, to allow Afren and AMNI to keep the Okoro/Setu project on track for ourtarget of 15,000 to 20,000 bopd by early 2008." Background information Afren Afren (www.afren.com) was founded in December 2004 by a management teamincluding Dr Rilwanu Lukman with the vision to become the leading pan Africanindependent Exploration and Production company. Since its listing on the AIMmarket of the London Stock Exchange, Afren has rapidly expanded its portfolioand the management team has delivered assets in the Joint Development Zone ofNigeria Sao Tome and Principe, Nigeria, Gabon and Congo. Afren will continue to add to its diversified portfolio of production, near termdevelopment and high impact exploration with the overall objective of creatingsubstantial shareholder value. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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