Afren Falls on Management Statement

By John Lee.

Shares in oil explorer Afren fell by more than 5 percent on Thursday morning as the company’s output failed to meet expectations due to installation delays, repair work and adverse weather.

In its Interim Management Statement, the company gave the following update on its operations in Iraq:

On 2 October 2014, Afren announced that it had begun to resume field operations on the Barda Rash field, following the precautionary step taken to temporarily suspend operations in August 2014 due to the regional security issues.

“Following the re-entry into the region, BR-4 production was not resumed due to the high water cut associated with water flow behind pipe from an upper zone. At BR-5, Afren is in the process of working through the stuck 5” liner so that drill stem test operations can continue.

“Afren is discussing its forward work programme with the Ministry of Natural Resources (MNR). As part of the forward work programme it is considering its options for the development of an early production facility (EPF) interim gas solution.

“Field operations at the Ain Sifni block recommenced in September following a temporary suspension in August due to the regional security issues.  The Simrit-4 well that was spudded in early 2014 has reached Target Depth (TD) in the Jurassic and Triassic reservoirs.   

“Operator, Hunt Oil, is currently negotiating the Field Development Plan (FDP) at Simrit with the MNR and an update will be provided in due course.  The programme at Maqlub will follow the FDP approval at Simrit.”

(Sources: Afren, Yahoo!)

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