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Afren Reports Acquisition Of Beneficial Interest In First Hydrocarbon Nigeria

7/5/2013 2:48 AM ET

Afren plc (AFRNF.PK) announced that following the sale of all Afren PDMR holdings in First Hydrocarbon Nigeria to CSL Stockbrokers in Nigeria, they have undertaken to use the net proceeds to acquire Afren shares in the public markets.

The Afren Chairman and Executive Directors, together with certain other Afren PDMRs, have entered into Sale and Purchase Agreements with CSL Stockbrokers for the sale of 11,819,085 shares in FHN, approximately 10 percent, at a price of US$2.47 per share. Net proceeds will be used to acquire Afren shares in the public markets, following the expiry of the current H1 2013 close period, and undertake to hold the shares for a minimum of two years, the company said.

Afren, in a separate announcement, confirmed the acquisition of an additional 23.3 percent beneficial interest in First Hydrocarbon Nigeria. This follows the recent shareholder approval on the recommended acquisition of a 10.4 percent interest. The acquisition of the additional 33,966,333 shares from a combination of Capital Alliance Energy Nigeria Limited, Earl Act Global Investments Limited and other FHN shareholders, has been undertaken at an average price of US$3.10 per share in cash.

Afren has also entered into a Put/Call option with Earl Act Global Investments Limited for a further 18,299,993 million FHN shares, representing a further 12.5 percent at a price of US$3.32 per share. These options may only be exercised after 24 months and for a period of 6 months thereafter.

FHN has a 45 percent interest in the OML 26 portfolio of assets onshore Nigeria. The portfolio of assets holds two producing fields, with 2P oil reserves estimated at 134.6 mmboe and gross contingent resources estimated at 68.0 mmboe, and three proven but undeveloped fields, with gross contingent resources estimated at 144 mmboe and a further 615 mmboe of gross unrisked prospective resources on the block across multiple prospects.

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by RTT Staff Writer

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