Afren share price nightmare: Day of reckoning is here

 
Jessica Morris
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Embattled oil producer Afren will today find out if it's been thrown a lifeline by rival company Seplat, a move that could provide one possible solution to the company's funding crisis.

Nigerian oil and gas explorer Seplat recently extended the deadline for its informal takeover offer - but at 5pm tonight its time will be up.

More on this story: Timeline - what went wrong for Afren?

City analysts have voiced doubts the deal will come to fruition, saying there's "little likelihood of an offer on Friday". There's a better chance of "another extension, in light of the new situation, or no offer at all," broker Oriel said in a note.

Afren revealed it required a $200m (£133m) cash injection to avoid running out of funds on Tuesday, sending its shares down as much as 72 per cent.

The company is in talks to defer a $50m payment due at the end of next month, and considering whether to use a 30 day grace period for its $15m interest payment, due 1 February.

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