23rd Nov 2006 07:02
Afren PLC23 November 2006 Afren plc (AIM: AFR) Drilling update on Okoro-3 appraisal well, offshore Nigeria London, 23 November 2006 - AMNI International Petroleum Development CompanyLimited ("AMNI") and Afren plc ("Afren" or "the Company") announce thesuccessful results of the Okoro-3 well offshore Nigeria. Amni and Afren are pleased to announce the successful completion of operationson the Okoro-3 well in Nigeria. Okoro-3 is the first well to be drilled by Afren/Amni on OML 112 in the shallowwater Niger Delta. Okoro-3 is a vertical appraisal well on the Okoro Fieldwhich was discovered by the Okoro-1 well in 1973. Okoro-1 found oil in twoseparate Agbada Formation sands between 4,900 and 5,550 feet. The Okoro-3 wellwas designed to evaluate the eastern extent of the field and acquire the fulldata suite, in particular fluid samples, which are essential for developmentplanning. The well commenced on 14th October and was drilled to total depth of 6,500ft inthe Miocene Agbada Formation. The well confirmed the eastern extension of thefield and also the hydrocarbon contacts seen in both sand formations in theinitial discovery. A 30ft interval in the Upper sand was tested and oil sampleswere taken that have confirmed the well productivity potential and other keyreservoir properties. Flowing tubing head pressures and other Petroleum Engineering data recordedduring the test, indicate that estimated production capacity for a completedproduction well would be in excess of 4,000 barrels of oil per day. Following completion of testing operations, a second appraisal well will bedrilled on the Okoro Field. The well will be drilled as a deviated sidetrackfrom the Okoro-3 wellbore and is designed to further evaluate both reservoirsand provide greater control for planning future horizontal production wells. Thesidetrack programme is expected to take approximately 15 days. The pre-drill range of reserves for the Okoro-Setu development project were 20mmbbls Proven (P1) and 35 mmbbls Probable (P2) reserves. Initial post wellanalysis of Okoro-3 results indicates that the revised range of reserves for theOkoro-Setu project is now 35 mmbbls Proven (P1), an increase of 75%, and 40mmbbls Probable (P2). Development drilling on both the Okoro and Setu Fields is scheduled to commencein Q3 2007 with the Global Santa Fe Adriatic VI drilling unit and fielddevelopment planning is currently on schedule for first oil in early 2008. Conference Call Afren will be holding a conference call regarding today's announcement and toprovide an operational and corporate update at 14.30 today. To access theconference call: Europe please dial + 44 208 515 2309 US please dial + 1 866 384 2826 The conference call will be available on replay for one week, by calling + 44207 190 5901 (pass code 134554 #). Brian O'Cathain, Chief Executive of Afren, commented "We are very pleased with the results of this appraisal well on the Okoro Field,which significantly enhances the proved reserves case on the Okoro-Setudevelopment. The successful delineation of Okoro within only six months ofAfren reaching agreement with Amni to enter this project demonstrates Afren'stechnical capability to deliver a challenging programme in a compressed timeframe. We look forward to working with Amni to deliver production from theOkoro-Setu development in early 2008. I am delighted with our recent progress, entry into Congo and Angola andtogether with the successful appraisal results, we remain on track for 15-20,000bpd by early 2008". Enquiries: Afren +44 20 7182 1800Brian O'Cathain [email protected] Shahenshah [email protected] Pelham Public Relations +44 020 7743 6673James Henderson [email protected] Haythornthwaite [email protected] Background information 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 the Initial PublicOffering in March 2005, Afren has rapidly expanded its African portfolio acrossfive countries; Nigeria, Sao Tome and Principe, Gabon, Congo and Angola. TheGroup is expecting to produce 15 to 20,000 barrels per day by 2008 from itscurrent portfolio. Afren will continue to add to its diversified portfolio of near termdevelopments and high impact exploration licences with the overall objective ofcreating substantial shareholder value. Note In accordance with the AIM Rules, the drilling update information in this reporthas been reviewed and signed off by Dr Nick Johnson, who is Head of Explorationand Production at Afren Plc and has over 25 years relevant experience within thesector. He consents to the information in the form and context in which itappears. The Company estimates its reserves in accordance with the guidelinesand definitions of the Society of Petroleum Engineers/World Petroleum Congress("SPE/WPC") reserves classification (March 1997) using accepted engineeringprinciples. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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