Afren

London, July 17, 2006 - Afren plc ("Afren" or the "Company") is pleased to announce that it has upsized the previously announced private placement by US$25 million to US$75 million equivalent in British Pounds of Convertible Senior Unsecured Bonds due 2011 (the "Bonds").

On July 4, 2006 the Company announced the closing of a private placement of US$50 million equivalent in British Pounds of Bonds, to be used to fund the exploration, development and production programme of its diversified portfolio of 10 assets across Nigeria, Nigeria Sao Tome and Principe, Gabon and Congo.

The entire upsizing of the Bond issue of US$25 million has been placed with a private investment fund of the Heerema Group, a Dutch based market leader in global oilfield services, focused on the design, fabrication, transportation and installation of offshore facilities. The Heerema Group has an expanding presence in, and commitment to, West African offshore activities and this investment reflects its support for developing indigenous African energy companies. The additional Bonds have been issued under identical terms to those previously announced, as summarised below.

Brian O'Cathain, Chief Executive, commented:

"The upsizing of the issue highlights investor support for Afren and its plans to create shareholder value through rapid expansion in the Gulf of Guinea region. We are particularly pleased that the Heerema Group has chosen to become a significant Afren stakeholder, which offers strategic benefit for the Company."

Enquiries:

Afren plc
+44 (0) 20 7182 1800
Brian O'Cathain   
Osman Shahenshah  

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

Background information

Summary of Bonds

The Bonds were issued at 100 per cent. of the principal amount and denominated in British Pounds. The Bonds bear a coupon of 9 percent per annum (payable semi-annually), mature in 2011 and are convertible into ordinary shares of the Company. The conversion price of 60 pence per ordinary share, was set at a 25 percent premium to the price determined in the pricing period leading up to closing. The Bonds also contain other terms, including anti-dilution provisions effective in the event of certain future issuances, a bondholder put option, payable in cash or shares (at a discount to the share price during the period prior to the payment) at the Company's option, a Company call option, and the ability to make coupon payments in cash or shares (at a discount to the share price during the period prior to the payment) at the Company's option.

Afren

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 ten assets in the Joint Development Zone of Nigeria Sao Tome 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.