Afren Forced into Administration

By John Lee.

London-listed oil explorer Afren has been forced into administration.

Crisis management consultants from AlixPartners were brought in after the company failed to find financial backers to meet a growing cash crisis.

In a statement to the markets, the company said:

“The board believes that all the possible routes have now been explored during the course of this process, which was subject to a strict timetable, driven by Afren plc’s short-term liquidity issues.

“These discussions have failed to deliver support for a revised refinancing and restructuring proposal that would result in Afren being able to pay its debts as they fall due.”

The company has a 60 percent working interest in the Barda Rash field (pictured) in the Kurdistan region.

(Sources: Afren, The Guardian)