Afren Expects Resource Upgrade

By John Lee.

Shares in Afren rose by more than 5 percent on Tuesday morning following a positive trading update.

The company made the following statement on its operations in Iraqi Kurdistan:

On the Ain Sifni block in Kurdistan, following the world class discovery with the Simrit-2 exploration well 1,509 feet of net oil pay and an aggregate flow rate of 19,641 bopd achieved, drilling was concluded on the Simrit-3 well, confirming the eastern extent of the Simrit anticline and achieving a cumulative test rate of 6,293 bopd. A declaration of commerciality has been submitted to the authorities and a resource upgrade is expected shortly.

Commenting today, Osman Shahenshah (pictured), Chief Executive of Afren plc, said:

2013 has been another exceptional year for Afren, with a combination of record financial results, production ahead of guidance and industry leading exploration success. The play opening Ogo discovery in Nigeria was one of the largest global discoveries in 2013, and will be followed by further appraisal and exploration drilling.

“At the same time we will continue to allocate capital to the highest cash return projects. This will provide the necessary funding to continue to de-risk our material exploration opportunity set. With industry leading positions in three key global oil and gas regions, Nigeria, the Kurdistan region of Iraq and East Africa, we remain focused on maximising value for our shareholders.

(Sources: Afren, Yahoo!)

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