Afren Takeover Speculation

By John Lee.

Shares in Afren, the U.K.-based oil and gas company with operations in Iraqi Kurdistan, gave up some of their recent gains on Wednesday, but were still nearly 10% up on Monday's intra-day low on speculation of a takeover offer.

According to This is Money, rumours were rife that Italy's ENI, and Exxon Mobil of US, the world’s largest energy company, are both considering an acquisition of the firm. Either one could launch a bid in the region of £2.15bn cash or £2-plus a share, it speculated.

Malcolm Graham-Wood, of VSA Capital, says the company has a good mix of production and exploration, and offers exposure to some of the most exciting prospective areas in the world.

Currently trading at 113p, over the past year the shares have as low as 73p (October) and hit a high of 150p in April.

(Picture: Afren's Barda Rash operations)

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