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Afren

May 2009

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • AFR
  • Price:
  • 38p
Full-year results from oil firm Afren, which showed a pretax loss of US$56m on revenue of US$45m, don't reflect the potential of the business, whose main assets are undergoing a substantial ramp-up in output. Its flagship Okoro Setu field in Nigeria is producing the vast majority of Afren's current production of 26,000 barrels oil per day, with the rest coming from assets in the Cote D'Ivoire. Meanwhile successful appraisal wells testing its nearby Ebok field means output could reach 65,000 bopd during 2011. This will mean substantial capital expenditure and importantly, the group has shored up its balance sheet through the placing of 265m new shares at 32p raising £85m, which will be enough to fund this expansion.Latest f ...

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Related Articles

Afren (February 2009)
Afren - Production to hit 21,000 bopd by November (November 2008)
Afren - West African oil firm on cusp of another major acquisition (October 2008)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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