Afren plc (“Afren” or the “Group”), (LSE: AFR), announces its Interim Management Statement (“IMS”) and financial results for the three months ended 31 March 2015

Afren plc (“Afren” or the “Group”), (LSE: AFR), announces its Interim Management Statement (“IMS”) and financial results for the three months ended 31 March 2015

Information contained within this release is unaudited and is subject to further review.

• US$200 million interim funding provided by existing Noteholders by way of new private placement notes in April 2015; proceeds to be used for general corporate purposes and capex; wider recapitalisation programme to be completed by the end of July 2015

• Nigeria projects progressing: Completion of top-side Ebok CFB extension; options for Okoro FFD with a low oil price under discussion; completion of first Okwok development well; fifth production well completed on OML 26

• 2015 capex guidance US$0.4 billion expected to focus on existing producing assets in Nigeria; average production guidance expected to be 23,000 – 32,000 bopd, reflecting lower share of production from Ebok following end of cost recovery

• Q1 2015 net production at 36,035 bopd, above FY guidance range but in line with expectations; Q1 2015 Revenue of US$130 million; Operating cash flow before movements in working capital of US$59 million; Capex US$212 million; Net Debt US$1,196 million

Commenting, Alan Linn, Chief Executive Officer of Afren plc, said
“Afren has delivered a solid first quarter result despite the continuing low oil price and additional NPI liftings from Ebok. We have already significantly curtailed immediate capital expenditure and are now working with our Partners to optimise forward investment in development projects in Nigeria. Business and process streamlining has commenced and we expect to begin seeing improved bottom line results from these efficiencies across the business as 2015 unfolds. Whilst interim funding is now in place, it will take time to work through historical issues and funding remains extremely tight. We will be working with shareholders in the coming weeks to explain the benefits of our proposed new funding structure and encourage them to support us in resolving our financing issues in order for Afren to deliver the long-term value and attractive future I see for the Company.”

For further information see Full Interim Management Statement_1_2015

Source: Afren plc

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