Afren hails top year as output and revenue hit record levels

OIL explorer Afren reported record production for 2012 yesterday, as it said full-year revenues were up 151 per cent.

The FTSE 250 oil and gas company – which made three “significant” exploration discoveries last year: the Okoro Field Extension and Ebok North Fault Block in Nigeria and a Kurdistan block – said full-year production was in line with guidance at 42,830 barrels of oil equivalent per day.

Full-year production for this year is estimated to average between 40,000 barrels of 47,000 barrels of oil a day.

Record financial results are also expected, with sales revenues forecast to hit a total of $1.5bn (£944m) for last year, a 151 per cent increase over the previous year.

Additionally, Afren said it would ramp up investment spending to $620m, from $520m last year.

“In 2013 we expect to further grow our reserves base through a multi-well exploration and appraisal drilling campaign in both established and new basins, while continuing to grow our production base,” chief executive Osman Shahenshah said yesterday.

Analysts from N+1 Singer yesterday hailed Afren’s trading statement “a strong 2012 performance, with production coming in as per guidance”.