Strong first quarter for Afren

Oil and gas producer Afren has delivered a 'strong' start to the year, with a year-on-year increase of 14 per cent in net production.

Oil and gas producer Afren has delivered a 'strong' start to the year, with a year-on-year increase of 14 per cent in net production.

The group, which said it remains on track to deliver full year net working interest production of between 40,000 to 47,000 barrels oil per day (boepd), generated first quarter profit before tax of $150m, up five per cent on $143m in the same the previous year.

This was despite revenue slipping four per cent from $387m to $373m year-on-year, after an eight per cent decline in the realised oil price offset a rise in net working interest production.

Osman Shahenshah, Chief Executive of Afren, said: "Afren continues to deliver strong production from our greenfield developments offshore Nigeria. Following the successful start to our 2013 E&A programme on Okwok, offshore Nigeria, and Simrit in the Kurdistan region of Iraq, we are currently drilling the West African Transform margin on OPL310 offshore Nigeria.

"The group remains in a strong financial position supported by a growing production base, to optimally explore, appraise and develop our high quality portfolio and continue to create significant value for our shareholders."

Operational cash flow fell four per cent from $300m to $288m year-on-year.

In Nigeria, gross production averaged 19,157 barrels of oil per day (bopd) at the Okoro field during the first quarter of 2013, representing a year-on-year increase of 17%.

At the Ebok field, gross production totalled 33,513 bopd during the first quarter of 2013, also representing a year-on-year increase of 17%.

At OML 115, Afren and its partner Oriental will commence drilling the Ufon South-1 well, the first exploration well on the block in the second half of 2013, following the completion of drilling operations at OPL 310. The company is in the process of relinquishing its interests in OPL 907 and 917.

The share price 2.83% to 138p by 09:25.

NR

Recommended

Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021
Share tips of the week – 17 September
Share tips

Share tips of the week – 17 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
17 Sep 2021
Royal Mail will deliver for investors – here's how to play it
Trading

Royal Mail will deliver for investors – here's how to play it

Royal Mail Group has found its feet in the past 18 months and looks cheap. Matthew Partridge looks at how to trade the shares.
14 Sep 2021
The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021

Most Popular

The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021
Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
Should investors be worried about stagflation?
US Economy

Should investors be worried about stagflation?

The latest US employment data has raised the ugly spectre of “stagflation” – weak growth and high inflation. John Stepek looks at what’s going on and …
6 Sep 2021