Afren

Afren plc ("Afren" or the "Company"), an independent oil and gas company, announces the completion of a Share Sale Agreement giving it a participation in an effective 4.41 per cent interest in 'Block 1' of the Nigeria - Sao Tome & Principe Joint Development Zone "JDZ".

'Block 1' was awarded in April 2004 to a consortium of ChevronTexaco JDZ Limited (51% and Operator); Esso Exploration and Production Nigeria - Sao Tome "One" Limited (40%) and Dangote Energy Equity Resources Limited (9%), (a Joint Venture between the Dangote Group of Nigeria and Energy Equity Resources ("EER")). Afren has concluded a participation in EER's effective 4.41% interest in Block 1. The Consortium members have agreed to pay a signature bonus of $123 million for the right to develop Block 1 under a long-term Production Sharing Agreement, which was signed on 1 February 2005, and became effective on 22 March 2005.

'Block 1' has been identified by Exploration Consultants Ltd, an independent oil and gas exploration consultancy, as a proven hydrocarbon area which has relevant characteristics to other existing discoveries adjacent to Nigerian territory and which has the potential for hosting "Giant" hydrocarbon reserves, comparable on an individual prospect basis to those already discovered in the region.

In particular structures are recognized in Block 1 that can be correlated by seismic data to discovery structures in adjacent Oil Prospecting Lease ("OPL") 246 in Nigeria, approximately 20 kilometres north of Block 1, where reported discoveries include the 1 billion barrel Akpo field.

Afren was formed in 2004 by a group of oil and gas professionals with significant experience in the African oil and gas sector to establish Afren as a leading oil and gas group within Africa. Shares in the Company started trading on the London Stock Exchange (AIM) on Monday 14 March 2005.

The Company is led by Guido Pas, acting Chairman, Bert Cooper, executive director, Egbert Imomoh, executive director and former Deputy MD of Shell Nigeria, and supported by non-executive director Dr. Rilwanu Lukman, the former Secretary General of OPEC. The Company is also being supported by the IFC (International Finance Corporation) of the World Bank Group, and by Samuel Dossou, a former board Chairman of OPEC, and one of the leading African investors in quoted oil and gas companies.

Afren was created to build initially through acquisition a leading exploration and production company within the African oil and gas sector. The rationale of the Company is to establish Afren as the pre-eminent independent pan-African oil and gas company, through the leveraging of key strategic relationships and local expertise. The Company will initially highlight exploration and production opportunities in the Gulf of Guinea region.

Bert Cooper, Executive Director of Afren plc commented:
"We are delighted that the Company has completed its first transaction, which we believe offers enormous potential. Our participation in Block 1 is an excellent example of the Company's strategy to work with high quality partners such as ChevronTexaco and ExxonMobil in exploiting highly pedigreed prospective asset opportunities. This is the first step by our experienced team in turning Afren into the leading independent pan-African oil and gas exploration and production company."

For further information, please contact:

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