LONDON (Alliance News) - Oil and gas explorer Afren PLC on Friday said it has secured a higher-than-anticipated funding commitment from its noteholders, as it said revenue and its operating cash flow in the first quarter of 2015 dropped sharply year-on-year.
Afren said that holders of its 2016, 2019 and 2020 nots have agreed to subscribe for new senior notes up to the maximum permitted level of USD369 million, USD93 million more than the company had announced it would received in net cash proceeds at the end of April.
The company will use the proceeds to refinance the interim funding deal it announced in March, to fund the development of its core producing assets, and for general working capital purposes.
In a separate statement, Afren said revenue in the first quarter to the end of March was down sharply to USD103.3 million from USD269 million a year earlier, with its operating cash flow prior to working capital movements down to GBP59.1 million from GBP169.1 million.
Average net production in the quarter was 36,035 barrels of oil per day, in line with the company's expectations for 2015, but the fall in revenue was driven by lower realised oil prices in the quarter and production liftings from the Ebok project in Nigeria used to settle a net profit interest liability.
"Afren has delivered a solid first quarter result despite the continuing low oil price and additional NPI liftings from Ebok. We have already significantly curtailed immediate capital expenditure and are now working with our partners to optimise forward investment in development projects in Nigeria," said Chief Executive Alan Linn.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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