AFR.L Regulatory News (AFR)

19 Jul 2005 07:01

Afren PLC19 July 2005 Afren plc Acquisition of Licence Interests in Gabon Afren PLC ("Afren" or the "Company"), an independent oil and gas company focusedon establishing itself as the leading pan-African exploration and productioncompany, announces the acquisition of two licence interests in Gabon. Afren announces the acquisition of two companies which own a 12.86%participating interest in Themis Marin and Iris Marin blocks Exploration andProduction Sharing Contracts offshore Gabon. Afren has entered into an agreement with Ascent Resources plc ("Ascent") toacquire two wholly owned subsidiaries, Gabon Investments (Iris Marin) Pty Ltdand Gabon Investments (Themis Marin) Pty Ltd. These companies hold a 12.86%Participating Interest in the Iris Marin Exploration and Production SharingContract ("EPSC") and in the Themis Marin EPSC respectively. Under the terms of the agreement Afren will issue 404,350 new ordinary shares inAfren to Ascent in return for its 12.86% interest in Themis Marin and Iris Marinblocks. Afren will also reimburse Ascent for £684,000 of past costs. Inaddition, Ascent will be granted a net profit interest of 1.75% of any profitgenerated under the EPSCs. The Themis and Iris permits are both operated by Sterling Energy plc and covertwo shallow water exploration concessions offshore Gabon. The Iris Marinconcession covers 902 square kilometers and is situated along the Gabon coastadjacent to the Shell operated Gamba field. The Themis Marin concession covers607 square kilometers and borders the northern edge of the Etame Marin permit.Both the Themis and Iris concessions are surrounded by proven oilfields, and areclose to pipelines and production infrastructure. The principal target on boththe Iris and Themis blocks is the Gamba Sandstone reservoir, which is productivein the nearby Etame field. The Iris Marin EPSC was signed in November 1999 and comprises three explorationterms, each of approximately three years duration. The property is currently inthe second exploration term, with an exploration commitment well planned to bedrilled in August 2005. The co-venturers have acquired 1,453 km of 2D seismicand 332 km2 of 3D seismic. The Themis Marin EPSC was signed in November 1999 and comprises two explorationterms of approximately three years each. The property is currently in the secondexploration term, with the first exploration commitment well expected to bedrilled in early 2006. The co-venturers have acquired 1,541 km of 2D seismic and296 km2 of 3D seismic and are currently processing a recently acquired 216 km23D seismic survey in the southern portion of the permit. Brian O'Cathain, Chief Executive of Afren commented: "We are delighted to announce this acquisition of our first licence interests inGabon. In our view both the Themis and Iris permits have significant potentialand fit in with our strategy of acquiring exploration licences with low riskexploration upside in West Africa, close to existing facilities." 19 July 2005 Enquiries: AfrenBrian O'Cathain +44 20 7969 2760Osman Shahenshah +44 20 7969 2760 Pelham Public RelationsCharles Vivian charles.vivian@pelhampr.com +44 020 7743 6672 Alisdair Haythornthwaite alisdair.haythornthwaite@pelhampr.com +44 020 7743 6676 Afren is an independent oil and gas exploration, development and productioncompany, established in 2004 to build an attractive, diversified and balancedportfolio of African assets, with an initial focus on the Gulf of Guinea region.Afren's corporate objective is "Capital appreciation for shareholders throughpreferential access to oil and gas production and exploration acreageacquisition, production growth, deal flow and exploration drilling in Africa" Notes to Editors: 1. Both of the Themis and Iris permits are operated by Sterling Energy plc. Theother participants in the EPSCs are: Sterling Energy plc 20.57% Petroleum Oil & Gas Corp. (Pty.) Ltd. of South Africa: 22.86% Premier Oil plc: 18.00% PanOcean Energy Corporation Limited 25.71% The Government of Gabon has an option to back in for 7.5% in both permits. 2. Gabon is centrally situated in the West African oil & gas province and has along history of oil production. It has the third largest reserves and is thefourth biggest producer in the region. Current production from Gabon isapproximately 250,000 bopd from its onshore and offshore fields. 3. Afren plc has 161,690,703 ordinary shares in issue. Application has been madeto the London Stock Exchange for the the new ordinary shares to be admitted andit is expected that trading will commence on 1st August 2005. After thistransaction, Afren will have 162,095,053 ordinary shares in issue. This information is provided by RNS The company news service from the London Stock Exchange