Afren

London, 27th March 2007 - Afren plc ("Afren" or "the Company") announces its preliminary results for the year ended 31 December 2006.

HIGHLIGHTS

Operational

• Successful appraisal programme on the Okoro Setu Project in Q3 2006
• Afren drilled two appraisal wells on the Okoro Field, on time and on budget
• The successful results of the appraisal programme fulfilled all pre-drill objectives and have significantly delineated the development.
• Independent reserves report estimates 2P reserve level of 32mmbbls
• The Obo-1 well on Block 1 of the Joint Development Zone of Nigeria Sao Tome and Principe logged a cumulative total of at least 150 feet (45 metres) of net hydrocarbon pay

Corporate and Acquisitions

• Agreement signed with Amni International Petroleum Development Company ("AMNI") for the development of the Okoro Setu Project in Nigeria
• Strategic entry into the Republic of Congo (Brazzaville) through the acquisition of a 14% stake in the La Noumbi permit
• Foothold in Angola established, through Heads of Agreement for a 5% stake in onshore Cabinda Block B
• Appointment of Dr Rilwanu Lukman as Chairman, Osman Shahenshah appointed Chief Executive and Evert Jan Mulder joins as Chief Operating Officer
• Dr Rilwanu Lukman establishes the International Advisory Board

Financial

• US$200 million fully underwritten Credit Facility secured post year-end, which will primarily be used to finance the development of the Okoro Setu Project
• US$15 million equity placement post year end to BNP Paribas and Standard Bank, the Mandated Lead Arranger and Lead Syndicate Bank respectively for the Credit Facility
• Successful convertible bond issue, upsized to US$75 million from US$50 million following strategic investment from the Heerema Group
• Company well capitalised at year end with US$35.7 million net cash at year end exchange rates

Outlook

• Development drilling on Okoro Setu Project to commence in Q3 2007
• Rig contract for nine month programme secured for Global Santa Fe's Adriatic VI
• Approval of the Field Development Plan is expected shortly from the Department of Petroleum Resources in Nigeria
• Afren is in advanced stage discussions on securing an FPSO in Nigeria
  High impact exploration drilling on the Doungou prospect in Republic of Congo (Brazzaville) in Q3 2007
• Drilling activity on the Admiral prospect in Gabon in Q3 2007

Osman Shahenshah, Chief Executive of Afren, commented:

"During 2006, Afren made significant progress in the growth of its West African portfolio and has demonstrated its ability as technical operator through the two well appraisal programme on the Okoro Field in Nigeria."

"2007 marks an important year for Afren, as the Company enters the next phase of its growth, focusing on the development of the Okoro Setu Project in Nigeria, while at the same time using its African relationships to continue to grow its diversified portfolio. With a strengthened operational team, Afren is well placed and on track for 15,000 to 20,000 bopd of production by early 2008."

Enquiries:

Afren plc
+44 (0) 20 7182 1800
Osman Shahenshah Chief Executive  
Evert Jan Mulder Chief Operating Officer  
Galib Virani  Investor Relations  

Jefferies International Limited
+44 (0) 20 7618 3500
Toby Hayward    
Jack Pryde    

Tristone Capital Limited
+44 (0) 20 7399 2480
Simon Ashby-Rudd    
Majid Shafiq    

Pelham Public Relations
+44 (0) 20 7743 6673
James Henderson    
Alisdair Haythornthwaite    

Background information

Afren (www.afren.com) was founded in December 2004 by a management team including Dr Rilwanu Lukman, (current Chairman), Osman Shahenshah, (current Chief Executive) and Bert Cooper (Advisor to the Board), with the vision to become the premier pan African independent Exploration and Production company. Since its listing on the AIM market of the London Stock Exchange, Afren has rapidly expanded its portfolio and the management team has delivered nine assets in the Joint Development Zone of Nigeria São Tomé and Príncipe, Nigeria, Gabon, Angola and Congo Brazzaville.

Afren will continue to add to its diversified portfolio of near term development and high impact exploration, with the overall objective of creating substantial shareholder value.