Afren sees higher oil production in 2012
Afren's (LON:AFR) output rose sharply in the final quarter of 2011 as it ramped up production at its Ebok field offshore Nigeria.
The exit production rate reached 53,200 barrels of oil equivalent per day compared to the 2011 average of 19,200 boepd, the company reported today.
In the current year, Afren expects its output to average between 42,000 and 46,000 boepd.
The increase in production came as the group's contingent and proved and probable resources jumped 650 percent compared with 2010 to 1.03 billion barrels with the acquisitions of the Barda Rash and Ain Sifni fields in Iraqi Kurdistan and the OML 26 licence in Nigeria.
Afren has planned a busy exploration programme for 2012 including multi-drill drilling campaigns in Ghana, Nigeria, Tanzania, Kenya and the Kurdistan region of Iraq, which it hopes will result in a "material transformation" of its resource base.
On the financial side, revenues increased from US$319 million in 2010 to US$600 million due to higher oil prices, production start up at the Ebok field and the commissioning of two infill wells at the Okoro field.
Based on current plans, capital expenditure for 2012 is forecast to reach between US$450 million and US$500 million.
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