AFR.L Regulatory News (AFR)

17 Jul 2006 07:00

Afren PLC17 July 2006 Afren plc (AIM: AFR) Upsizing of Convertible Bond Issue by US$25 million to US$75 million London, July 17, 2006 - Afren plc ("Afren" or the "Company") is pleased toannounce that it has upsized the previously announced private placement by US$25million to US$75 million equivalent in British Pounds of Convertible SeniorUnsecured Bonds due 2011 (the "Bonds"). On July 4, 2006 the Company announced the closing of a private placement ofUS$50 million equivalent in British Pounds of Bonds, to be used to fund theexploration, development and production programme of its diversified portfolioof 10 assets across Nigeria, Nigeria Sao Tome and Principe, Gabon and Congo. The entire upsizing of the Bond issue of US$25 million has been placed with aprivate investment fund of the Heerema Group, a Dutch based market leader inglobal oilfield services, focused on the design, fabrication, transportation andinstallation of offshore facilities. The Heerema Group has an expanding presencein, and commitment to, West African offshore activities and this investmentreflects its support for developing indigenous African energy companies. Theadditional Bonds have been issued under identical terms to those previouslyannounced, as summarised below. Brian O'Cathain, Chief Executive, commented: "The upsizing of the issue highlights investor support for Afren and its plansto create shareholder value through rapid expansion in the Gulf of Guinearegion. We are particularly pleased that the Heerema Group has chosen to becomea significant Afren stakeholder, which offers strategic benefit for the Company." Enquiries: Afren +44 20 7182 1800Brian O'Cathain boc@afren.comOsman Shahenshah os@afren.com Pelham Public +44 020 7743 6673Relations James Henderson james.henderson@pelhampr.comAlisdair alisdair.haythornthwaite@pelhampr.comHaythornthwaite Background information Summary of the Bonds The Bonds were issued at 100 per cent. of the principal amount and denominatedin British Pounds. The Bonds bear a coupon of 9 percent per annum (payablesemi-annually), mature in 2011 and are convertible into ordinary shares of theCompany. The conversion price of 60 pence per ordinary share, was set at a 25percent premium to the price determined in the pricing period leading up toclosing. The Bonds also contain other terms, including anti-dilution provisionseffective in the event of certain future issuances, a bondholder put option,payable in cash or shares (at a discount to the share price during the periodprior to the payment) at the Company's option, a Company call option, and theability to make coupon payments in cash or shares (at a discount to the shareprice during the period prior to the payment) at the Company's option. Afren Afren (www.afren.com) was founded in December 2004 by a management teamincluding Dr Rilwanu Lukman with the vision to become the leading pan Africanindependent Exploration and Production company. Since its listing on the AIMmarket of the London Stock Exchange, Afren has rapidly expanded its portfolioand the management team has delivered ten assets in the Joint Development Zoneof Nigeria Sao Tome and Principe, Nigeria, Gabon and Congo. Afren will continue to add to its diversified portfolio of production, near termdevelopment and high impact exploration with the overall objective of creatingsubstantial shareholder value. This information is provided by RNS The company news service from the London Stock Exchange