Afren Shares Fall on Interims

By John Lee.

Shares in Afren were down as much as 7 percent during the day on Tuesday, closing down 5.7 percent, as the company's earnings came in below target.

In its Interim Management Statement this morning, Afren gave the following update on its Iraq operations:

"On the Barda Rash block in Kurdistan, the BR-4 well has tested two horizons in the Triassic Kurra Chine formation at 6,100 bopd and 1,750 bopd respectively. The BR-5 well has intersected a similar hydrocarbon-bearing sequence in the Kurra Chine formation and will be tested in due course.

"Flow lines and facilities have been updated and BR-4 is online. BR-5 will be brought into production later this year. On the Ain Sifni block in Kurdistan, the Simrit-4 well was spudded early 2014 and is drilling ahead, targeting Jurassic and Triassic reservoirs.

"Following success at Simrit, the Partners expect further growth in reserves and resources at Ain Sifni in 2014."

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

"Afren continues to deliver operationally on all fronts with revenues in Q1 2014 of US$269 million and operating cash flow of US$169 million.  We are moving forward with the play opening Ogo discovery and elsewhere development drilling is on track. 

"Our focus remains on allocating our capital to the highest return projects, which we expect to provide significant production and cash flow growth, while we continue to de-risk our unprecedented exploration opportunity set."

(Sources: Afren, Yahoo!)

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