Oil and gas company Afren PLC (AFR.L) Monday said it would acquire the beneficial interest of about 10.4 percent of the issued share capital of First Hydrocarbon Nigeria or FHN for $37.05 million in cash. Currently, Afren holds 44.5 percent of interest in FHN, which, after the acquisition, is expected to rise to 54.8 percent.
Following the acquisition, which is subject to shareholder approval, FHN is expected to remain as an indigenous Nigerian oil and gas company.
Assuming completion of the deal, the Afren's Group pro forma net proved and probable reserves are expected to increase 29 percent, from 210 mmboe to approximately 270 mmboe.
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