By John Lee.
Shares in Afren fell 1.7 percent following the publication of its full-year results for 2012.
- Record financial results driven by strong production growth (+123%); FY 2013E net production expected to average 40,000 to 47,000 boepd (excluding Barda Rash)
- Significant exploration success
E&A success ratio of 88%
265% reserves replacement ratio – net working interest 2P reserves addition of 39 mmbbls (gross 76 mmbbls and excluding Ain Sifni) to 210 mmboe
- Group pro-forma net 2P reserves expected to increase to approximately 270 mmboe after consolidation of OML 26 reserves
following exercise of a put option by a third party over FHN shares (subject to shareholder approval)
- Multi-well E&A drilling campaign targeting Pmean resources of 650 mmboe
Okwok appraisal success confirms management view of 52 mmbbls gross recoverable reserves (net working interest 29 mmbbls)
Simrit-3 well confirms eastern extent of anticline
- Strong balance sheet
net debt, excluding finance leases US$488 million (31 December 2011: US$548 million)
US$300m senior secured Ebok facility signed (post period end), replacing the existing Ebok RBL facility. Pro-forma net debt unchanged
- Repeatable strategy – continue to create significant shareholder value
Commenting today, Osman Shahenshah (pictured), Chief Executive, said:-
“In 2012 we achieved record financial results driven by strong production growth at our greenfield developments offshore Nigeria. We realised an E&A success ratio of 88% and a 2P reserves replacement ratio of 265%. We have started our 2013 multi-well E&A campaign with success at Okwok, offshore Nigeria, and Simrit-2 and Simrit-3, in the Kurdistan region of Iraq. With a track record of project delivery, exploration success and strategic acquisitions, we are well placed to continue to create significant value for shareholders.“
Strategy and outlook
Afren has established leadership positions in each of its three business units, Nigeria and other West Africa, Afren East Africa Exploration and the Kurdistan region of Iraq.
With an exciting work programme in 2013 encompassing both established and new basins, we expect to further consolidate our leading position in Nigeria, further demonstrate the quality of our asset base in the Kurdistan region of Iraq and open up new oil and gas basins in East Africa.
With numerous opportunities for growth, 2013 promises to be another year of achievement for Afren and we are well placed to continue to deliver superior returns for our shareholders.
(Sources: Afren, Yahoo!)