Afren targets 40,000bpd from Nigeria’s operations

AFREN Plc has unveiled its intention to reach 40,000 barrels per day (bpd) of crude oil production from Ebok oil field situated in Akwa lbom State, in 2011. Nigeria’s total crude oil production stands at 2.6bpd.

The company said it has reached 17,000 bpd crude oil production surpassing the 15,000bpd it earlier forecasted.

The company said in a statement yesterday that the Ebok oil field off the coast of Nigeria, which recently started production, was performing ahead of its expectations, giving it confidence for 2011.

According to the company, oil production from its Ebok oil field reached 17,000 bpd, beating guidance it gave in March when it said output from the first phase of production would reach 15,000 bpd.

The company, which also owns oil blocks in Ghana, Tanzania and Ethiopia, said it was on track to produce an average of 40,000 bpd in 2011, in line with its previous forecasts.

The Chief Executive of the company, Osman Shahenshah said in the statement that the company will be drilling a number of high impact wells across both West and East Africa, and together with a strong acquisitions pipeline, Afren is very well positioned as we move towards the second half of the year.

He said:  “We are very pleased to have increased production at the Ebok field to current levels in excess of 17,000bpd, ahead of pre start-up expectations.  Together with the recent infill drilling at Okoro, group wide operated production is over 40,000bpd. The company will be drilling a number of high impact wells across both West and East Africa, and together with a strong acquisition pipeline, Afren is very well positioned as we move towards the second half of the year”.

Afren is one of the leading pan-African independent exploration and production company – listed on London’s Main Market and a constituent of the FTSE 250.

Its portfolio now extends to 29 assets in 11 countries, from Nigeria, Ghana, Côte d’Ivoire, Nigeria and São Tomé & Príncipe JDZ, Congo Brazzaville and South Africa, through to new East African opportunities in Ethiopia, Kenya, Madagascar, the Seychelles and Tanzania.

Ebok is an undeveloped oil field located in OML 67, 50 km offshore in 135 ft of water in Nigeria’s prolific South Eastern producing area.

The field was discovered by the ExxonMobil / NNPC JV in 1968 (M-QQ1 (Ebok-1)), and two subsequent appraisal wells were drilled in 1970 (Ebok-2 and Ebok-3). A total of 271 ft. (83m) of net oil pay was encountered in Ebok-1 in four sands between 2,600 ft. (800m) and 3,600 ft. (1,100m); none of the zones were production tested although 24°API oil was recovered from the Ebok- 1 well.

The company’s activities span the full-cycle E&P value chain of exploration, appraisal, development through to production, in a continent that is the fastest-growing supplier of natural resources to the world’s leading markets.

Shares in Afren, which have lost 8 per cent of their value in the last month, underperforming the European index of oil and gas companies, which has dropped 5 per cent, were up 1.8 per cent at 151 pence, valuing the company at about 1.4 billion pounds ($2.3 billion).