Afren announces Completion of interim funding, appoints new CEO and updates on reserves
Afren plc (“Afren”, the “Company” or the “Group”), (LSE: AFR) announces that, further to its announcements of 13 March and 1 April 2015, it has successfully completed key steps in its recapitalisation plan to address its funding requirements and operational repositioning which will allow it to succeed in the current oil price environment
• US$255 million of net total funding to be provided by bondholders as part of the recapitalisation, with the ability to increase such net funding to US$305 million
• Arrangements for the provision of US$200 million in net interim funding provided by bondholders have been completed, the remaining committed US$55 million will be provided at closing which is expected to be in July 2015
• Alan Linn has been appointed as Afren’s new CEO bringing to ‘New Afren’ 35 years’ of industry experience and a successful track record implementing strategic change within established businesses
• The recapitalisation and investment demonstrates the ongoing commitment to invest in Nigeria
These steps set ‘New Afren’ on a decisive path to address the operational and governance issues it has faced and ensure it can successfully reposition itself focused on its core Nigerian producing assets.
Commenting, Alan Linn, new CEO of Afren plc, said
“I am looking forward to working with the Afren team and its partners to deliver a lean and effective business with an oil production and development focus. The strong support shown by key stakeholders ensures we can now progress a number of important development projects in Nigeria which will contribute early production and revenue to the business and support our aim to be profitable in a lower oil environment.
There is a lot to do. However, the core assets and the quality of people and partners I’ve met give me the confidence to say that Afren has an attractive future and I am pleased to have the opportunity to contribute to this future success.”
Commenting, Egbert Imomoh, Chairman of Afren plc, said
“I am very happy we have reached agreement on our recapitalisation which will allow us to create a ‘New Afren’.
I am also delighted to welcome Alan Linn as CEO to drive the future redevelopment of Afren. He comes with deep industry experience and a strong track record of success. We are fortunate to have attracted such an outstanding CEO to lead the ‘New Afren’. I would like to thank Toby Hayward for stepping into the role of Interim CEO at a very difficult time in the Company’s history.”