Afren hails record performance in 2012

FTSE 250 oil and gas group Afren said Monday that production levels last year hit a record-high as it labelled its exploration and appraisal (E&A) campaign a 'significant success'.

FTSE 250 oil and gas group Afren said Monday that production levels last year hit a record-high as it labelled its exploration and appraisal (E&A) campaign a 'significant success'.

Net production in 2012 totalled 42,830 barrels of oil equivalents per day (boepd), in line with the guidance range of 42,000-46,000 boepd given at the half-year results statement in August.

Afren hailed three "significant exploration discoveries" last year: the Okoro Field Extension, the Ebok North Fault Block and the Simrit-2. Meanwhile, seismic data and prospect maturation upgraded Afren East Africa Exploration prospectively.

The company said it expects to produce 40,000-47,000 boepd in 2013, excluding the Barda Rash project which was initiated in the third quarter of 2012.

As well as output hitting record levels, the firm said it also anticipated record financial results for last year: 2012 sales revenue is expected to rise 151% year-on-year to $1.5bn, despite the realised average oil price slipping slightly to $107 per barrel, down from $109 per barrel in 2011.

"2012 saw record production and financial performance combined with significant exploration success in Nigeria and the Kurdistan region of Iraq," said Chief Executive Osman Shahenshah.

The firm spent $520m on capital expenditure in 2012, and expects to spend a further $620m this year. Net debt by December 31st 2012 had come down to $488m, from $548m the year before.

Shahenshah added: "In 2013 we expect to further grow our reserves base through a multi-well exploration and appraisal drilling campaign in both established and new basins, while continuing to grow our production base. We are financially well positioned with robust cash flows, a strong balance sheet and the necessary financial capacity and flexibility to optimally explore and develop our high quality portfolio of growth opportunities well into the future. There is much to look forward to in 2013 and beyond."

Recommended

Share tips of the week
Share tips

Share tips of the week

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
30 Apr 2021
The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021

Most Popular

What is hyperinflation and could it happen here?
Inflation

What is hyperinflation and could it happen here?

The Bank of England has been accused of the kind of money-printing that could lead to Zimbabwe-style hyperinflation. But that's very unlikely to happe…
4 May 2021
Micro-cap stocks: how to get huge returns from tiny firms
Small cap stocks

Micro-cap stocks: how to get huge returns from tiny firms

Micro-cap stocks are often overlooked, but the British market has plenty of them and their potential is massive. Max King picks the best two investmen…
3 May 2021
Copper has hit a ten-year high, but this could just be the start of a huge bull market
Industrial metals

Copper has hit a ten-year high, but this could just be the start of a huge bull market

The price of copper is at its highest for ten years. But supply constraints and a massive rise in demand mean it’s not going to stop there, says Domin…
5 May 2021