Afren announces a significant oil discovery in the Okoro East field

Africa focused oil exploration group Afren has this morning announced a significant new off-shore oil find just 2 kilometres east of its main site in Nigeria, in the Okoro field. The company has described the tertiary reservoir sands encountered as "excellent" and as being of a quality equivalent to those under development at its main Okoro field.

According to management, "the well result represents a successful start to Afren's 2012 exploration campaign that will see the Company participate in multiple wells across each of its core areas."

The Okoro East well was drilled in partnership with Amni International Petroleum Development Company.

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Significantly, the outfit believes that the discovery opens the way for further prospectivity at previously unexplored levels both on the main field and elsewhere on the block.

The company also emphasizes the proximity of the new well to existing infrastructure, a factor which will facilitate its monetisation.

Lastly, the company calls attention to some of its other current drilling programmes, such as that underway in the Kurdistan region of Iraq or the Nunya-1x (Cuda-2) exploration well offshore Ghana which is expected to be spudded later this month.

As of 10:10am shares of Afren are rising by 10.52% to 12.10p.

AB