AFR.L Regulatory News (AFR)

11 May 2005 07:00

Afren PLC11 May 2005 Afren PLC Board Appointments and Corporate Update Afren PLC ("Afren" or the "Company"), an independent oil and gas company focusedon establishing itself as the leading pan-African exploration and productioncompany, which listed on AIM in March 2005, announces the following management,corporate and operational news. HIGHLIGHTS: • The appointments of Brian O'Cathain as Chief Executive and Osman Shahenshah as Chief Financial Officer. • The appointment of Peter Bingham as Non-Executive Director and Chairman of the Audit Committee. • The acquisition by the International Finance Corporation ("IFC"), a member of the World Bank group, of a 7.5% shareholding in Afren, through the exercise of options. • The establishment of a Nigerian Subsidiary of Afren ("Afren Nigeria"), designed to establish a presence in Nigeria and allow the Company to take full advantage of oil and gas opportunities within Nigeria • The appointment of Egbert Imomoh as Managing Director of Afren Nigeria. • Provision of a US$50 million debt facility for Afren Nigeria by the IFC. • Heads of Agreement signed by Afren in respect of two Nigerian proven undeveloped field developments. • Proposed drilling in Q4 2005 of Block 1 of the Sao Tome and Principe - Nigeria Joint Development Zone (JDZ), in which Afren holds a 4.41 percent stake. Brian O'Cathain, Chief Executive of Afren, commented: "I believe that Afren is well placed to become the leading pan-Africanexploration and production company, and I look forward to working with thehighly experienced Board to achieve this. Today's announcement highlights therapid progress the group is making in realising its objectives. Theparticipation of the IFC and the formation of Afren Nigeria will enable us tomake a significant impact within the oil and gas sector in Africa." 11 May 2005 Enquiries: AfrenBrian O'Cathain +44 20 7969 2760Osman Shahenshah +44 20 7969 2760 Pelham Public RelationsJames Henderson james.henderson@pelhampr.com +44 020 7743 6673Charles Vivian charles.vivian@pelhampr.com +44 020 7743 6672 BOARD APPOINTMENTS The Board is pleased to announce the appointment of Brian O'Cathain as ChiefExecutive of the Company, with immediate effect. Mr. O'Cathain has over twentyyears experience of the upstream oil industry including seven years as apetroleum engineer at Shell, and eleven years at Enterprise Oil. In 2002 hejoined Tullow Oil as Managing Director of Tullow Oil International Limited,where he was responsible for Tullow's international business, including thedevelopment of its African portfolio. He was involved in Tullow's acquisitionof Energy Africa, and was part of the roadshow team which raised over $200million equity to conclude that deal. Osman Shahenshah has been appointed Chief Financial Officer of Afren withimmediate effect. He has sixteen years international financial experience,including senior positions in the oil and gas groups of the IFC and DresdnerKleinwort Wasserstein and in the investment banking group of MediocreditoCentrale. Mr. Shahenshah's involvement in the African oil and gas sector spans15 years, including work with Shell, Chevron, Total, ENI and the IFC. Mr.Shahenshah was formerly a Non-Executive Director of Afren. Egbert Imomoh, currently an Executive Director, has also been appointed asManaging Director of Afren Nigeria with immediate effect. He has had thirty sixyears' experience with Shell, most recently as Deputy Managing Director of ShellPetroleum Development Company (Nigeria) ("SPDC"). Mr. Imomoh has held a widevariety of senior positions throughout SPDC including Chief Petroleum Engineer,and Technical and Planning Manager. SPDC is one of the largest of Shell'soperating companies worldwide, and is responsible for operated production ofapproximately 1 million barrels of oil per day. Peter Bingham has been appointed as a Non-Executive Director, and will beChairman of the Audit Committee. Mr. Bingham is an Associate of the CharteredInstitute of Bankers and spent over forty years with Barclays Bank. Heultimately became Head of Banking at BZW and served as a member of the centralBarclays Group Credit Committee. Mr. Bingham will bring a wealth of experienceto the Board's oversight of the Company's financial affairs. In early July 2005 Afren will announce the appointment of a new Non-executiveChairman. Mr. Guy Pas, the current acting Non-executive Chairman will continueas a Non-executive Director of the Company. Finally, Bert Cooper, a founder Executive Director of Afren, has stepped downfrom the Board and will henceforth provide strategic advice to the company as aSpecial Adviser to the Board introducing the Company to new projects. Afren isgrateful to Mr. Cooper for the important entrepreneurial role he played infounding Afren alongside continuing Non-executive Directors Dr Rilwanu Lukmanand Mr. Guy Pas. The Board looks forward to continuing to receive valuedassistance from Mr. Cooper in his new capacity. THE INTERNATIONAL FINANCE CORPORATION (IFC) The IFC has exercised its option over 10,526,318 shares in Afren. The shareswere allotted on 10th May 2005, and application has been made to AIM for theshares to be trading by 13th May 2005. The IFC now holds 7.5% of Afren PLC. TheIFC has also committed to further investment in Afren Nigeria, subject to finalapprovals which are in progress (see below). Following the exercise of the IFC'soption, the total number of shares in issue in Afren is 140,290,705. AFREN NIGERIA Afren has initiated the formation of a new Nigerian subsidiary which willestablish a corporate presence in West Africa and take full advantage of theopportunities within the oil and gas sector available to an operator in Nigeriawith local presence and knowledge. Afren Nigeria will be staffed locally andwill be led by Egbert Imomoh, Executive Director of Afren PLC, who has beenappointed Managing Director of Afren Nigeria. The IFC has committed, subject to internal approvals which are in progress, toprovide a US$50 million debt facility for Afren Nigeria, together with US$1million in equity for the subsidiary. Afren Nigeria will focus on developing oil and gas opportunities in Nigeria andwill initially target proven undeveloped fields which have historically sufferedfrom a lack of investment and technology. Afren will partner with localcompanies to accelerate the development of a portfolio of proven producingassets in Nigeria, by far Africa's largest hydrocarbon province. As part of this strategy Afren has signed heads of agreement with two Nigerianindigenous oil companies in respect of proven undeveloped fields and is innegotiations with a number of other Nigerian indigenous oil companies in respectof similar assets. The Company expects to establish production from these assetswithin twelve months. UPDATE ON BLOCK 1 OF THE SAO TOME & PRINCIPE - NIGERIA JDZ As announced on 30th March 2005, Afren PLC completed a 4.41 percent shareparticipation agreement in Block 1 of the JDZ. This is an offshore Blockadjacent to the deepwater Nigeria petroleum province, where the explorationsuccess rate is over 50%. Since completion of the agreement, the Operator, Chevron Texaco, has firmed upits plans for drilling in the area, and the Company now expects the firstexploration well to be drilled in early 2006, subject to rig availability. RESULTS Afren will publish its maiden set of results in respect of first half 2005during the third quarter. Notes to Editors: The Board of Directors of Afren PLCNon-Executive Chairman To be announcedActing Non-Executive Chairman Guy PasChief Executive Brian O'CathainChief Financial Officer Osman ShahenshahManaging Director (Afren Nigeria) Egbert ImomohNon-Executive Director Dr Rilwanu LukmanNon-Executive Director Peter Bingham Guy Pas (Non-executive Director and Acting Non-Executive Chairman) Mr. Pas is an international executive with a background in senior financial andinvestment management roles relating to African natural resources. Following anearly career as a commodity and trade finance officer at Chase Manhattan Bank,Mr. Pas was a founding partner of the Addax and Oryx Group, a group ofinternational petroleum marketing and producing companies operating in Africa.He has participated in the development of several listed mining companiesfocused on Africa and the former Soviet republics, including SAMAX Resources andOXUS Resources. In addition to his important role at Afren, Mr Pas is Chairmanand CEO, of Mano River Resources, a dual-listed (TSXV/AIM) gold and diamondexploration company which is active in Guinea, Liberia and Sierra Leone. Healso manages Synergy Resources Fund, an unlisted fund investing in mineralresources, and Vector XXI Finance, a Geneva-based investment advisory company.Mr. Pas holds a cum laude degree in Applied Economics from Antwerp University. Brian O'Cathain (Chief Executive) Mr. O'Cathain is a geologist and petroleum engineer with over twenty yearsexperience in oil and gas exploration and production. He began his oil industrycareer in 1984 as a petroleum engineer with Shell International, where he workedon operated production assets in the UK North Sea, the Netherlands, and NewZealand. He joined Enterprise Oil in 1991 as an Exploration Geologist. Aftermoving to Enterprise Oil's Business Development Group in 1994, he was appointedGeneral Manager Business Development in 1998, and was responsible foracquisitions and divestments, and new business strategy. In 2000, he becameManaging Director of Enterprise Oil's Irish subsidiary, responsible for theappraisal and development of the Corrib Field. Mr. O'Cathain joined Tullow Oilin 2002 as Managing Director of Tullow Oil International Limited, where he wasresponsible for Tullow's International business, including its exploration andproduction in Africa. He was involved in Tullow's acquisition of Energy Africa,and was part of the equity roadshow team which raised over $200 million toconclude that deal. Mr. O'Cathain holds a first-class honours degree in Geologyfrom the University of Bristol, and is a member of the Society of PetroleumEngineers, and the American Association of Petroleum Geologists. Osman Shahenshah (Chief Financial Officer) Mr. Shahenshah has sixteen years of experience in private equity, project andstructured finance, capital markets and developing public and private sectorprojects worldwide in the energy, infrastructure, telecommunications and processindustries, with a primary focus on oil and gas. His international career hasincluded senior positions in the oil and gas finance groups of the InternationalFinance Corporation (private sector arm of the World Bank) and DresdnerKleinwort Wasserstein, in the investment banking group of the Italianinstitution Mediocredito Centrale, and at Taylor-DeJongh, an independent oil andgas financial advisory firm. Mr. Shahenshah has been actively involved in theAfrican oil and gas sector for more than 15 years, advising companies such asShell, Chevron, Total, ENI and the Nigerian National Petroleum Corporation. Heholds a PhD from the University of Pennsylvania, a Master's Degree from ColumbiaUniversity and a Bachelor's Degree from Brown University. Egbert Imomoh (Managing Director, Afren Nigeria) Mr. Imomoh has had thirty six years' experience with the Shell group ofcompanies, in Nigeria, the UK and the Netherlands. Recently, Mr. Imomoh servedas Deputy Managing Director of Shell Petroleum Development Company (Nigeria) ("SPDC"), one of the Shell group's largest operating companies, which isresponsible for operating a joint venture that produces approximately 1 millionbarrels of oil per day. Trained in Mechanical and Petroleum Engineering, Mr.Imomoh held a wide variety of senior positions throughout the Shell group fromChief Petroleum Engineer in SPDC to Technical and Planning Manager to Deputy MDof SPDC. He is member of the Society of Petroleum Engineers and has served onthe SPE board as regional Director for Africa. Dr Rilwanu Lukman, KBE, Legion d'Honneur (Non-executive Director) Dr Lukman is an internationally known and respected figure in the oil and gasindustry. He possesses more than forty years of experience in the industry, andhas relevant relationships at the most senior levels around the world. Some ofDr Lukman's key appointments have included: Secretary General of OPEC (5 terms),President of OPEC (9 sessions), Nigerian Minister of Petroleum Resources,Special Adviser to the Nigerian President for Oil and Gas, Nigerian Minister ofForeign Affairs, Nigerian Minister of Mines, and Founder and Chairman of theAfrican Petroleum Producers Association. Dr Lukman is instrumental in helpingAfren to develop and implement its asset acquisition strategy. He holds aBachelor of Science degree from the Royal College of Mines, Imperial College(London), and follow-on diplomas, including doctorates, from prestigiousinstitutions including the University of Leoben (Austria), McGill University(Montreal), University of Bologna (Italy), Ahmadu Bello University and theUniversity of Maiduguri in Nigeria. Peter Bingham (Non-executive Director) Mr Bingham is a senior financial executive with over forty years' experience ininternational financial markets, primarily at the Barclays Bank Group. Mr.Bingham successively held directorships at the London branch level, in theGroup's merchant banking division, and at BZW (now Barclays Capital) where heset up the credit risk management team. Mr Bingham ultimately became Head ofBanking at BZW and served as a member of the central Barclays Group CreditCommittee. Mr Bingham is accomplished in the development and oversight offinancial strategies for growing companies such as Afren, and is well-known inthe London capital markets. His support and guidance will be invaluable as Afrenimplements its asset acquisition programme. Brian O'Cathain is, in the past 5 years, a director of the following companies: Current Directorships Previous DirectorshipsBlack Mountain Consulting Limited Enterprise Energy Ireland Limited Enterprise Energy Ireland Offshore Inc. Enterprise Energy Services Limited PIPCO RSG Limited Tullow Algeria Limited Tullow Bangladesh Limited Tullow Cameroon Limited Tullow Cote d'Ivoire Limited Tullow Cote d'Ivoire Exploration Limited Tullow Egypt Operations Limited Tullow Gabon Operations Limited Tullow India Operations Limited Tullow Oil International Limited Tullow Pakistan (Developments) Limited Tullow Romania Limited Tullow Senegal Operations Limited Tullow Syria Operations Limited Peter Bingham is, in the past 5 years, a director of the following companies:Current Directorships Previous DirectorshipsCapital and Corporate Holdings SA There is no further information to be disclosed in accordance with Schedule 2paragraph f of the AIM rules. This information is provided by RNS The company news service from the London Stock Exchange