Afren

London, 27 June 2007 - Afren plc ("Afren" or the "Company") announces that BNP Paribas, the Mandated Lead Arranger of a fully underwritten US$200 million debt facility to finance the Okoro Setu Project has closed syndication.

The Board of Afren is delighted to announce that syndication on the US$200 million debt facility to finance the Okoro Setu Project has successfully closed and was significantly over-subscribed by a diverse syndicate of international banks.

The syndicate, led by BNP Paribas, consists of Calyon, Guaranty Trust Bank of Nigeria, KBC Bank, Natixis and Standard Bank plc. The Facility is limited-recourse and has been secured against the Okoro Setu Project reserves, which have been independently certified by Netherland Sewell and Associates.

Together with the recent successful US$65 million equity placement, that was also oversubscribed, the Company remains on track to deliver 15,000 to 20,000 bopd by mid 2008.

Osman Shahenshah, Chief Executive of Afren, commented:
"I am very pleased to see that the financial community has shown such confidence in Afren's flagship development project, its strategy and future growth prospects. This is further endorsed by the fact that BNP Paribas, Standard Bank and Calyon have chosen to take equity stakes in Afren, thereby participating across Afren's capital structure.

Given our focus on working with indigenous companies in Nigeria and developing the region's resources, I am also delighted to see strong local backing for the project through participation from the Guaranty Trust Bank of Nigeria."

Afren plc   +44 (0) 20 7182 1800
Osman Shahenshah Chief Executive  
Evert Jan Mulder Chief Operating Officer  
Galib Virani  Investor Relations   
     
Jefferies International Limited  +44 (0) 20 7618 3500
Toby Hayward   
Jack Pryde   
     
Tristone Capital Limited  +44 (0) 20 7399 2480
Simon Ashby-Rudd   
Majid Shafiq   
     
Pelham Public Relations  +44 (0) 20 7743 6673
James Henderson   
Alisdair Haythornthwaite   

Background on Syndicate Banks

BNP Paribas - Mandated Lead Arranger

Headquartered in Europe, BNP Paribas has one of the largest international banking networks with 95,000 employees operating in over 85 countries across the world, holding leading positions in several financial segments in the Middle-East, Africa and Asia and being a major international player in the United States.

BNP Paribas' market capitalization is €81.81 billion with total assets of €1.44 trillion as at the end of 2006.

Calyon

Calyon is a wholly-owned subsidiary of Credit Agricole S.A. which is in turn part of the Credit Agricole Group, the 6th largest banking group worldwide in terms of shareholder equity, with a market capitalization of €46.9 billion and total assets of €1.38 trillion as at the end of 2006.

Guaranty Trust Bank of Nigeria

Guaranty Trust Bank plc is one of Nigeria's most profitable and fastest growing banks. It is rated AA- (double A minus) by Fitch; and BB- (double B minus) by Standard & Poor's, the best ratings assigned by the two international rating agencies to any Nigerian or West African-based bank. In 2006 total assets and contingents increased to approximately €3.7 billion.

It has stated its ambitions to undertake big ticket financing projects within and outside the country and recently became the first Nigerian institution since the early 1990s to enter the international capital markets and raise funds in a Regulation S Eurobond issue with a $300 million Eurobond issue.

KBC Bank

KBC Bank is one of the top ten largest financial institutions in the European Union. It is part of the KBC Group, headquartered in Belgium and quoted on the Euronext stock exchange with a market capitalisation of €35 billion and total assets of more than €325 billion.

Natixis

Natixis is a key player in the banking sector in France and Europe, offering a range of services including corporate and investment banking, operating in 68 countries and supporting the development of large businesses, SMEs and institutions. Natixis' market capitalization is €21.9 billion with total assets of €583 billion in 2006.

Standard Bank plc

The Standard Bank Group Limited ("Standard Bank") is Africa's leading banking and financial services group, with assets of approximately US$139 billion and over 42,000 employees in 39 countries across the globe.

Standard Bank's principal international investment banking subsidiary is Standard Bank Plc whose main activities involve sourcing and structuring capital markets, and trade and project-related transactions. It also provides advisory, financing, hedging and commodity trading services.

Afren

Afren (www.afren.com) was founded in December 2004 by a management team including Dr Rilwanu Lukman, Chairman, and Osman Shahenshah, Chief Executive, with the vision to become the premier 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 São Tomé and Príncipe, Nigeria, Gabon, Angola and Congo Brazzaville.

Afren will continue to add to its diversified portfolio of near term development and high impact exploration with the overall objective of creating substantial shareholder value.