Afren

Afren plc ("Afren" or "the Company") announces that its Nigerian subsidiary Afren Energy Resources Limited ("AER") has signed a drilling contract for the Global Santa Fe Adriatic VI Jack-up drilling rig to carry out development drilling on the Okoro / Setu fields offshore Nigeria.

Afren announces that AER has signed a nine month rig contract with the GlobalSantaFe International Drilling Corporation, commencing in August 2007, to carry out an extensive drilling programme to complete development of the Okoro and Setu Fields in OML 112, offshore Nigeria. This will allow the drilling of the production and injection wells required to complete the Okoro / Setu development programme.

Okoro and Setu are proved undeveloped oil and gas fields located in OML 112 in shallow water offshore Nigeria, which were originally awarded to AMNI International Petroleum Development Company Limited ("AMNI") in 1993 as part of the Nigerian government's indigenous licensing program. In June 2006 Afren announced the signing of a Financing and Production Sharing and Technical Services Agreement with AMNI. The fields have combined estimated recoverable reserves of 35 to 60 million barrels ("MMbbls") and are expected to flow in excess of 15,000 barrels of oil per day ("bopd") when full combined production is achieved. First oil is expected in early 2008.

Project Update

The Seadrill 7 jack-up rig is being mobilized to commence appraisal drilling on Okoro/Setu development at the end of September 2006. The planned programme includes an appraisal well to test upper and lower reservoirs at Okoro and a re-entry and re-drill of the Setu-1 well.

The Adriatic VI drilling unit will be utilized for a 9 month programme starting in August 2007 to carry out the development drilling on the Okoro and Setu fields. First production is expected in early 2008.

The decision to use the Adriatic VI drilling unit on the Okoro/Setu development will maximise value on Afren's most important asset. Discussions are currently ongoing to secure an additional rig contract for the Ogedeh development.

Overall, the Company is targeting production of 15,000 to 20,000 bopd by 2008 from its existing portfolio.

Brian O'Cathain, Chief Executive of Afren commented:

"We are pleased to have secured such an excellent drilling unit in a difficult market, to allow Afren and AMNI to keep the Okoro/Setu project on track for our target of 15,000 to 20,000 bopd by early 2008."

Background Information

Afren (www.afren.com) was founded in December 2004 by a management team including Dr Rilwanu Lukman with the vision to become the leading 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 assets in the Joint Development Zone of Nigeria Sao Tomen and Principe, Nigeria, Gabon and Congo.

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