Afren

AFREN PLC Announces the following Management, Corporate and Operational News

Afren plc ("Afren" or the "Company"), an independent oil and gas company focused on establishing itself as the leading pan-African exploration and production company, which listed on AIM in March 2005, announces the following management, corporate and operational news.

HIGHLIGHTS:

The appointments of Brian O'Cathain as Chief Executive and Osman Shahenshah as Chief Financial Officer.
The appointment of Peter Bingham as Non-Executive Director and Chairman of the Audit Committee.
The acquisition by the International Finance Corporation ("IFC"), a member of the World Bank group, of a 7.5% shareholding in Afren, through the exercise of options.
The establishment of a Nigerian Subsidiary of Afren ("Afren Nigeria"), designed to establish a presence in Nigeria and allow the Company to take full advantage of oil and gas opportunities within Nigeria.
The appointment of Egbert Imomoh as Managing Director of Afren Nigeria.
Provision of a US$50 million debt facility for Afren Nigeria by the IFC.
Heads of Agreement signed by Afren in respect of two Nigerian proven undeveloped field developments.
Proposed drilling of Block 1 2005 of the Sao Tome and Principe - Nigeria Joint Development Zone [JDZ], in which Afren holds a 4.41 percent stake.
Brian O'Cathain, Chief Executive of Afren, commented:
"I believe that Afren is well placed to become the leading pan-African exploration and production company, and I look forward to working with the highly experienced Board to achieve this. Today's announcement highlights the rapid progress the group is making in realising its objectives. The participation of the IFC and the formation of Afren Nigeria will enable us to make a significant impact within the oil and gas sector in Africa."

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

BOARD APPOINTMENTS

The Board is pleased to announce the appointment of Brian O'Cathain as Chief Executive of the Company, with immediate effect. Mr. O'Cathain has over twenty years experience of the upstream oil industry including seven years as a petroleum engineer at Shell, and eleven years at Enterprise Oil. In 2002 he joined Tullow Oil as Managing Director of Tullow Oil International Limited, where he was responsible for Tullow's international business, including the development of its African portfolio. He was involved in Tullow's acquisition of Energy Africa, and was part of the roadshow team which raised over $200 million equity to conclude that deal.

Osman Shahenshah has been appointed Chief Financial Officer of Afren with immediate effect. He has sixteen years international financial experience, including senior positions in the oil and gas groups of the IFC and Dresdner Kleinwort Wasserstein and in the investment banking group of Mediocredito Centrale. Mr. Shahenshah's involvement in the African oil and gas sector spans 15 years, including work with Shell, Chevron, Total, ENI and the IFC. Mr. Shahenshah was formerly a Non-Executive Director of Afren.

Egbert Imomoh, currently an Executive Director, has also been appointed as Managing Director of Afren Nigeria with immediate effect. He has had thirty six years' experience with Shell, most recently as Deputy Managing Director of Shell Petroleum Development Company (Nigeria) ("SPDC"). Mr. Imomoh has held a wide variety of senior positions throughout SPDC including Chief Petroleum Engineer, and Technical and Planning Manager. SPDC is one of the largest of Shell’s operating companies worldwide, and is responsible for operated production of approximately 1 million barrels of oil per day.

Peter Bingham has been appointed as a Non-Executive Director, and will be Chairman of the Audit Committee. Mr. Bingham is an Associate of the Chartered Institute of Bankers and spent over forty years with Barclays Bank. He ultimately became Head of Banking at BZW and served as a member of the central Barclays Group Credit Committee. Mr. Bingham will bring a wealth of experience to the Board's oversight of the Company's financial affairs.

In early July 2005 Afren will announce the appointment of a new Non-executive Chairman. Mr. Guy Pas, the current acting Non-executive Chairman will continue as a Non-executive Director of the Company.

Finally, Bert Cooper, a founder Executive Director of Afren, has stepped down from the Board and will henceforth provide strategic advice to the company as a Special Adviser to the Board introducing the Company to new projects. Afren is grateful to Mr. Cooper for the important entrepreneurial role he played in founding Afren alongside continuing Non-executive Directors Dr Rilwanu Lukman and Mr. Guy Pas. The Board looks forward to continuing to receive valued assistance from Mr. Cooper in his new capacity.

THE INTERNATIONAL FINANCE CORPORATION (IFC)

The IFC has exercised its option over 10,526,318 shares in Afren. The shares were allotted on 10 th May 2005, and application has been made to AIM for the shares to be trading by 13 th May 2005. The IFC now holds 7.5% of Afren plc. The IFC has also committed to further investment in Afren Nigeria, subject to final approvals which are in progress (see below). Following the exercise of the IFC's option, the total number of shares in issue in Afren is 140,290,705.

AFREN NIGERIA

Afren has initiated the formation of a new Nigerian subsidiary which will establish a corporate presence in West Africa and take full advantage of the opportunities within the oil and gas sector available to an operator in Nigeria with local presence and knowledge. Afren Nigeria will be staffed locally and will be led by Egbert Imomoh, Executive Director of Afren plc, who has been appointed Managing Director of Afren Nigeria.

The IFC has committed, subject to internal approvals which are in progress, to provide a US$50 million debt facility for Afren Nigeria, together with US$1 million in equity for the subsidiary.

Afren Nigeria will focus on developing oil and gas opportunities in Nigeria and will initially target proven undeveloped fields which have historically suffered from a lack of investment and technology. Afren will partner with local companies to accelerate the development of a portfolio of proven producing assets in Nigeria, by far Africa's largest hydrocarbon province.

As part of this strategy Afren has signed heads of agreement with two Nigerian indigenous oil companies in respect of proven undeveloped fields and is in negotiations with a number of other Nigerian indigenous oil companies in respect of similar assets. The Company expects to establish production from these assets within twelve months.

UPDATE ON BLOCK 1 OF THE SAO TOME & PRINCIPE - NIGERIA JDZ

As announced on 30th March 2005, Afren plc completed a 4.41 percent share participation agreement in Block 1 of the JDZ. This is an offshore Block adjacent to the deepwater Nigeria petroleum province, where the exploration success rate is over 50%.

Since completion of the agreement, the Operator, Chevron Texaco, has firmed up its plans for drilling in the area, and the Company now expects the first exploration well to be drilled in early 2006, subject to rig availability.

RESULTS

Afren will publish its maiden set of results in respect of first half 2005 during the third quarter.