Afren

Afren plc ("Afren" or "the Company") (AIM:AFR), the independent oil and gas exploration, development and production company, announces its maiden set of interim results.

The interim half year results cover the trading of Afren plc from its initial formation as at 31 December 2004 for the six months to 30 June 2005. This period includes the raising of £13.3m of share capital through £5.3m of pre IPO funding and AIM admission fundraising of £8m on 14 March 2005.

Afren is an independent oil and gas exploration, development and production company, established in 2004 to build an attractive, diversified and balanced portfolio of African assets, with an initial focus on the Gulf of Guinea region. Afren's corporate objective is "Capital appreciation for shareholders through preferential access to oil and gas production and exploration acreage, production growth, deal flow and exploration drilling in Africa."

HIGHLIGHTS

Financial

Raised a total of £21.3m:
Share capital of £13.3m raised pre IPO and March 2005 AIM IPO
£7.5m [before expenses] in working capital raised through a placing of 21,400,000 shares at 35p with institutional investors in July 2005
International Finance Corporation ("IFC"):
Exercised warrants of £0.5m in full, post IPO, acquiring a 7.5% shareholding
Agreed provision of a proposed US$50 million debt facility for Afren Energy Resources Ltd, the Company's Nigerian subsidiary
Loss of £2.32m for the six month period ending 30 June 2005
Corporate

Listing on AIM in March 2005
Wholly-owned Nigerian subsidiary, Afren Energy Resources Ltd, established June 2005
Exploration

Completion of deal to participate in Nigeria-Saõ Tomé & Principe Joint Development Zone [JDZ] Block 1 through acquisition of Energy Equity Resources AS for US$6.5m
Completion of deal to participate in Themis Marin and Iris Marin blocks offshore Gabon
First well on Iris Marin finds good reservoir, but no hydrocarbons
Application for a 10% interest in the Ibekelia Block Technical Evaluation Agreement Area offshore Gabon, where an exploration well is currently drilling
Development

Heads of Agreement signed with two Nigerian indigenous oil companies in respect of undeveloped fields
Completed a Financing and Production Sharing Agreement for the development of the Ogedeh Field, offshore Nigeria, with development wells expected to produce at rates in excess of 2,500 barrels per day
Management

Appointment of Charles Jamieson, Formerly Chief Executive of Premier Oil plc as Non-Executive Chairman
Appointment of the management team, including:
Chief Executive: Brian O'Cathain, formerly Head of International Business at Tullow Oil plc
Chief Financial Officer: Osman Shahenshah, former Investment Banker
Head of Exploration and Production: Nick Johnson, formerly Head of Global Exploration and Reservoir Management at OMV
Appointment of Egbert Imomoh, formerly deputy Managing Director of Shell Petroleum Development Company in Nigeria, as Managing Director of Afren Energy Resources Ltd., the Company's Nigerian subsidiary
Appointment of Constantine Ogunbiyi, formerly Deputy Head of Cadwalader, Wickersham & Taft LLP's Africa Practice, as Head of Corporate Affairs, and a director of Afren Energy Resources Ltd.
Commenting on the results, Brian O'Cathain, Chief Executive of Afren plc, said:
"I am delighted to report the maiden set of interim results for Afren. Our success in identifying and securing opportunities to date coupled with investment in the senior management team will be beneficial as we look to develop into a significant oil and gas player within Africa. We are especially pleased to have Charles Jamieson join the Board as Non-Executive Chairman.The Group has made significant progress in its first six months on AIM, creating a strong management team, beginning to establish a footprint within Africa with the signing of the Group's first production sharing agreement and the formation of a strong exploration portfolio. With our portfolio development programme well underway and a number of potential opportunities under discussion we are confident for the future."

Click here to view the Interim Board Report

For further information, please contact:

Afren plc    
Brian O'Cathain boc@afren.com +44 (0) 20 7182 1800
Osman Shahenshah os@afren.com +44 (0) 20 7182 1800

Pelham Public Relations    
James Henderson james.henderson@pelhampr.com +44 (0) 20 7743 6673
Charles Vivian charles.vivian@pelhampr.com +44 (0) 20 7743 6672