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Afren plc (AFR LN)

10th December 2009

Afren plc announces significant upgrade to Ebok volumetrics following full analysis of the Ebok-5 appraisal well results offshore Nigeria

Highlights

• Ebok-5 encountered a total of 377 ft gross oil pay in the D1, LD-1E, LD-1F and D2 reservoir sands
  

• Ebok Fault Block West STOIIP upgraded to 158 mmbbls oil (92 mmbbls pre drill), representing a 72% increase in volumes
  

• Gross technically recoverable volumes for Ebok Fault Block West have increased to 40 mmbbls (25 mmbbls pre drill)

• Upgrade to total Ebok field volumetrics of 290 mmbbls STOIIP and 93 mmbbls estimated recoverable
  

• Total Ebok resource potential increased to 167 mmbbls

Ebok-5 appraisal well results

The Ebok-5 appraisal well, which was drilled by the Transocean Adriatic IX jack up drilling unit, was drilled to a total depth of 3,743 ft on the Ebok Fault Block West ("FBW"), with drilling operations completed on 17th November 2009. The well encountered a total gross oil column of 377 ft (comprising 323 ft in the D1 and LD-1E reservoir sands, in addition to a further 54 ft of gross oil pay in the D2 and LD-1F reservoirs).  

Reserves growth - progressive de-risking of further upside potential

The greater than expected oil column (particularly in the LD-1E reservoir) has led to an upgrade in volumetrics for FBW to 158 mmbbls STOIIP of which 40 mmbbls is estimated as recoverable (versus pre-drill estimates of 92 mmbbls STOIIP, 25 mmbbls recoverable). This increases total 2P Ebok recoverable reserve estimates to 93 mmbbls.

This reserves growth is an endorsement of Afren's technical capabilities, and has been delivered through the deployment of Afren's understanding and interpretation of the regional subsurface.  The Ebok-5 well results will be fully integrated into Afren's subsurface model and will further assist in de-risking the remaining 74 mmbbls appraisal potential at the Ebok field (with total resource potential of 167 mmbbls).  

Continued appraisal and development of the Ebok field

Post completion of the Ebok-5 appraisal well, the drilling rig re-located to the central area of the field and spudded the Ebok-6 appraisal well on 20th November 2009.  The well is targeting an estimated 33 mmbbls STOIIP and 8 mmbbls recoverable in the D2 Southern Lobe.  Following  completion of the Ebok-6 well, Development Phase 1a drilling will commence.  

The Phase 1a development plan comprises five horizontal oil production wells in the D2 reservoir, one horizontal oil production well targeting the D1 reservoir and one water injection well in the central Fault Block 1 and Fault Block 2 areas of the field. All wells will be drilled from a single field location via a Well-head Support Structure ("WSS") and mobile offshore production unit ("MOPU"). Fabrication of the WSS is complete and is in transit for delivery to the project. The Company is in the process of finalising contract discussions on the production facilities. Associated gas produced will be utilised as fuel for the facilities' power generation and as gas lift to assist well productivity.  

Osman Shahenshah, Chief Executive of Afren, commented:

"The better than expected Ebok-5 well results further upgrade the reserve estimates for the project and provide a greater understanding of the broader Ebok - Okwok complex. With the benefit of an additional oil bearing data point, we will continue to deploy our core technical strengths and enhanced understanding in further unlocking the remaining upside potential at both the Ebok and Okwok fields."  

Alhaji Mohammed Indimi, Chairman of Oriental, commented:

"We are very pleased with the Afren-Oriental partnership.  The Ebok-5 appraisal well, supplements Ebok-4 drilling success, both of which have exceeded our pre-drill expectations and materially increased the Ebok resource base."

  

Enquiries:
Afren plc		+44 20 7451 9700
Osman Shahenshah	Chief Executive
Galib Virani	Head of Acquisitions and Investor Relations
Pelham Public Relations		+44 20 7337 1500
James Henderson
Mark Antelme

Analyst Conference call

Afren will be hosting a conference call for analysts at 15:00 GMT / 10:00 EST today. To access the conference call please dial, +44 (0)20 8515 2301, Code 4192597

A replay facility will be available shortly after the call until 16 December. To access this facility dial +44 (0)20 7190 5901, Code 142487#.

Notes to Editors  

Afren is an African focused independent oil and gas exploration and production company listed on the main market of the London Stock Exchange.  Afren has established itself as a significant oil and gas producer with current production of 23,000 working interest boepd of oil, gas and natural gas liquids.  Afren has a reserves and contingent resource base of 171 net mmboe with additional prospective resources identified of 815 net mmboe, across Nigeria, Côte d'Ivoire, Ghana, Congo Brazaville, Gabon and the Nigeria - São Tomé & Príncipe JDZ.

For further information please refer to www.afren.com.

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