Afren

Afren PLC ("Afren" or "the Company"), the Africa-focused independent oil and gas company, today announces the successful placing of 21,400,000 shares at 35p with institutional investors, raising £7.5 million (before expenses) in working capital. An application has been made to AIM for the new ordinary shares to be admitted and it is expected that trading will commence on 4 July 2005.

The proceeds of Afren's initial placing in March 2005 were to fund its commitments under its 4.41% interest in Block 1 (see below) and to provide the Company with general working capital . The funds raised in this placing will be used by Afren to secure a number of early production opportunities in Nigeria, and to expand the Company's West African exploration portfolio. The placing follows the formation of Afren Energy Resources Ltd ("AER"), a wholly owned subsidiary giving the Company a presence on the ground in Nigeria to allow Afren to take full advantage of oil and gas opportunities in the country. AER is currently pursuing a number of opportunities in Nigeria. AER's Managing Director is Egbert Imomoh, who is also an Executive Director of Afren, and is based in Lagos. Mr. Imomoh will be supported by Mr. Constantine L. Ogunbiyi, Head of Corporate Services of Afren plc, who has been appointed as a Director of AER.

The Company also holds an indirect 4.41% stake in Block 1 of the Nigeria – São Tomé and Príncipe Joint Development Zone, through Dangote Energy Equity Resources.

Brian O'Cathain, Chief Executive, commented:
"The response to the placing from institutional investors has been good and the working capital raised will be used to continue the progress we are making in expanding our West African portfolio."

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

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 acquisition, production growth, deal flow and exploration drilling in Africa".