Afren records higher oil estimate at Nigerian Ogo field

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Nigeria-Afren1Afren Plc (AFR) a U.K. energy explorer in Africa and Iraq rose to a two-year high in London trading after finding more oil off Nigeria than previously forecast.

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Afren on Tuesday climbed as much as 13 percent to 168 pence, the highest intraday price since July 2011.

The company more than tripled its estimate of recoverable oil at the Ogo prospect, drilled with Optimum Petroleum Development Ltd and Lekoil Ltd, to 774 million barrels from 202 million barrels.

Nigeria, Africa’s biggest oil-producing nation, accounts for most of Afren’s sales, providing it with cash to invest elsewhere including South Africa and Kurdistan.

“The discovery looks to be one of the most important made in West Africa  in recent history and to describe it as ‘transformational’ would not be hyperbole,” Daniel Ekstein, a London-based analyst at UBS AG, wrote in a report. “Developing the light oil phase is likely to be relatively straightforward.”

Afren, which said last month that 2013 production will be at the upper end of its forecast, has gained 23 percent this year in London.

“Based on the well data, the partners have identified volumes in excess of our pre-drill estimates,” Chief Executive Officer Osman Shahenshah said in a statement. Drilling at the prospect has been suspended, because “the drill string parted” and the well had “a hydrocarbon kick” before it was permanently secured, Afren said in the statement.

 

Babatunde Akinsola
Babatunde Akinsolahttps://naija247news.com
Babatunde Akinsola is aNaija247news' Southwest editor. He's based in Lagos and writes on the Yoruba Nation political issues, news and investigative reports

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