Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Afren Expects Higher 2011 Revenues - Update

Africa-focused oil and gas company Afren Plc (AFR.L), Monday, said it expects about a 50 percent increase in revenues for the full year 2011, helped by higher production and improved commodity prices. The company's shares are down more than 5 percent on the London Stock Exchange.

For the full year, the company expects total revenues to be around $600 million, up from $319 million reported in the year 2010. The company attributed the increase in revenues to higher production due to production start up at Ebok field and commissioning of two infill wells at the Okoro field, combined with increase in realized commodity prices.

Afren said its net production at the company's assets during the year was about 19,200 boepd.

In the fourth quarter, production increased to an exit rate of 53,200 boepd, directly attributable to the company. This increase in production follows the commissioning and ramp up of all production wells associated with the initial phases of the Ebok field development, the company said.

Looking ahead to full-year 2012, Afren expects average production of 42,000 to 46,000 boepd.

During 2011, the company realized an average oil price of $109 per bbl, representing a $2.3 average discount to Brent, and an average gas price of $8.4 per mcf.

Capital expenditure in 2011 was about $550 million, and the company expects 2012 budget to be in the range of $450 million to $500 million.

Osman Shahenshah, chief executive of the company said, "We have started our 2012 exploration campaign with a significant discovery offshore Nigeria, through the Okoro East Exploration well. The multi well drilling campaign in Ghana, Nigeria, the Joint Development Zone of Nigeria São Tomé and Príncipe, Tanzania, Kenya and the Kurdistan region of Iraq, has the potential to materially transform and increase our discovered resource base."

The company is scheduled to announce its full-year results on March 27.

AFR.L is currently trading at 117.86 pence, down 6.74 pence or 5.41 percent, on a volume of 3.27 million shares on the LSE.

Register
To receive FREE breaking news email alerts for Afren plc and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
The U.K. economy grew at a slower pace in the third quarter in the face of rising uncertainty stemming from global economic conditions, preliminary estimates from the Office for National Statistics Office showed Friday. Gross domestic product climbed 0.7 percent from the second quarter, when it grew 0.9 percent. German consumer climate is set to improve slightly in November, ending the downward trend, as income expectations among households strengthened on the back of the strong labor market situation, survey data revealed Friday.The forward-looking consumer confidence index rose slightly to 8.5 in November from 8.4 in October. Software giant Microsoft Corp. said Thursday after the markets closed that its first quarter profit fell 13% from last year, hurt mainly by integration and restructuring costs even as revenue surged 25% thanks to strong sales of its gadgets and cloud-based products. However, the company's quarterly earnings per share came in above analysts' expectations as did its quarterly revenue.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.