afren factbook

Afren plc

April 2012

FACT BOOK

Highlights:

• Nine interests in Blocks spanning shallow water offshore and onshore areas

• Initial phases of the Ebok development now fully onstream, development ongoing in 2012

• OML 26 acquisition completed

• Okoro onstream in 2008. Good reservoir management moving recovery factor towards the 3P scenario and production maintained consistently ahead of pre start-up expectations

• Significant oil discovery at Okoro East

• Maturing Okwok towards development status

• High-impact exploration drilling at Ebok, OML 115 and OPL 310 in 2012

• Regional office in Lagos

Highlights:

• Two upstream Blocks and a gas processing plant

• Oil, natural gas and NGL production

• Effective management of mature production at Block CI-11

• Exciting appraisal and exploration opportunities at Block CI-01, adjacent to maritime border with Ghana

• Regional office in Abidjan

Highlights:

• Keta Block located along the prolific West African Transform Margin

• Large scale prospectivity identified in Upper Cretaceous, analogous to recent major discoveries in Ghana

• Successful farm down of 35% interest and operatorship to Eni in return for a full carry through the exploration drilling of one well in 2012. Afren still retains a 35% interest

Highlights:

• La Noumbi permit adjacent to, and on trend with, the large M’Boundi field – one of Africa’s largest onshore discoveries

• Working petroleum system demonstrated on the Block, with prospectivity identified at several intervals

• Two exploration wells proposed in 2012 by the operator

Highlights:

• Block 2B located in the Orange River Basin close to the Ibhubesi gas field – covers an area of around 5,828 km2 with water depths ranging from shoreline to 250 m

• A-J1 oil discovery tested 36º API oil in 1989

• Multiple prospects identified

• 600 km2 of new 3D seismic data to be acquired ahead of expected exploration drilling in 2012

Highlights:

• Obo-1 discovery well encountered 150ft of oil pay in 2006

• New operator, Total, proposed the drilling of one appraisal well on the Obo discovery and one exploration well in 2012

• Proximity of Total’s existing infrastructure in offshore Nigeria offers potential synergies that could enhance development prospects for the Block

Nigeria

Côte d’Ivoire

Ghana

Congo Brazzaville

South Africa

Nigeria – São Tomé & Príncipe JDZ

Nigeria

Côte d’Ivoire

Congo (Brazzaville)

Nigeria – São Tomé & Príncipe JDZ

1,040 mmbblsGross reservesand resources

393 mmbbls

252 mmbbls

129 mmboe

Gross contingent and prospective resources

Gross prospective resources

Gross reservesand resources

29

12

Assets across Africaand the Middle East

Countries with world class potential

Production

Exploration

Appraisal

Development

Afren now has a diversified yet balanced portfolio of 29 assets in 12 countries located in hydrocarbon basins of global significance. Between them they cover every stage of the upstream oil and gas workflow from exploration, appraisal and development through to production – making us a full-cycle E&P company.

1 Afren plcFact Book 2012

Our Business at a Glance

Ghana

1,412 mmbblsGrossprospectiveresources

1 4

5

2

3

6

Highlights:

• Blocks located in the high potential Ogaden Basin

• Blocks 7 and 8 have good oil shows in Jurassic and gas shows in Triassic

• Work ongoing to further interpret the prospectivity of Blocks 7 and 8

• Seismic acquisition completed in 2010 with exploration drilling planned for 2012

Highlights:

• Block 1101 is located on the Eastern flank of the Ambilobe basin onshore Northern Madagascar

• Three major structures mapped close to existing well with oil shows

• Proven oil accumulations in the Isalo formation in Central Madagascar at Bemolanga and Tsimiroro are evidence of large scale oil potential

• Afren’s operated interest has increased to 90%

• Seismic acquisition and exploration drilling scheduled for 2013

Highlights:

• The Tanga Block is a 7,064 km2 licence lying directly south of and adjoining Afren’s Kenyan Blocks L17 and L18

• Large scale prospectivity and numerous additional leads identified

• Seismic acquisition completed and exploration drilling planned for 2012

Highlights:

• Four Blocks in high potential rift and coastal basins – all have evidence of working hydrocarbon systems

• L17/L18 – coastal to shallow water marine setting. Exploration drilling in 2012 contingent on rig availability

• Block 1 – onshore acreage contiguous with Ogaden basin in Ethiopia; acquiring 1,200 km of new 2D seismic

• Block 10A – exploration drilling scheduled for 2012

• Regional office in Nairobi

Highlights:

• Three Blocks located on the Seychelles micro-continent

• Recently interpreted data indicates several 100 mmbbl plus leads in all three Blocks, as well as new basins with the potential to contain significant Jurassic sedimentary sections

• Main exploration target is the Permo-Triassic Karoo interval, which comprises non-marine sands inter-bedded with shales

• New seismic acquisition in 2011 ahead of exploration drilling

Highlights:

• Two Production Sharing Contracts: 60% operated interest in Barda Rash and 20% non-operated interest in Ain Sifni

• Large scale discovered but undeveloped resource base with low risk/high volume upside

• Low unit cost reserve growth (US$0.68 2P/2C bbl compares very favourably to other regional transactions during the period)

• The Barda Rash PSC is located 55 km north-west of Erbil. Production start up in 2012

• The Ain Sifni PSC is located approximately 70 km north-west of Erbil. Substantial low risk volumes in a proven oil bearing play

• Regional office in Erbil

Ethiopia Madagascar

Tanzania

Kenya

Seychelles

Kurdistan region of Iraq


Kenya

Ethiopia

Seychelles

Tanzania

Madagascar

South Africa

350 mmbbls

1,387 mmbbls

464 mmbbls

157 mmbbls

1,475 mmbbls

1,095 mmbbls

191 mmbbls





Gross 2P and 2C reservesand resources



2Afren plcFact Book 2012

12

7

8

9

11

10

Production by Type (FY 2011)

Revenue by Type (FY 2011)

Net Prospective Resources

Production by Country (FY 2011)

Revenue by Country (FY 2011)

Net 2P & 2C Reserves and Resources

Gas 9%

Oil 97%

Ghana 494.2

Nigeria 530.5

Madagascar 172.3

JDZ 15.0

Congo 35.2

Seychelles 347.7

Côte d’Ivoire 56.7

South Africa 87.5

Ethiopia 47.0

Côte d’Ivoire 11%

Côte d’Ivoire 8%

Oil 91%

Gas 3%

Tanzania 1,026.4

Kurdistan 183.4

Kenya 519.3

Nigeria 89%

Nigeria 92%

19,154 boepd

US$596.7 mm

3,515 mmboe

19,154 boepd

US$596.7 mm

Ebok 61.1

Okoro 7.8

CI-11 2.1

Block 1 1.9

Setu 0.8

Okwok 29.0

Ain Sifni 8.4

CI-01 24.2

Barda Rash 859.8

995 mmboe

2011 Highlights


Net W.I. Production (boepd) 19,154 14,333 + 34%

Realised Oil Price (US$ per bbl) 109.0 79.7 + 37%

Realised Gas Price (US$ per mcf) 8.8 5.7 + 54%

Cash at bank (US$mm) 291.7 140.2 + 108%

Gross debt (US$mm) 840.0 267.7 + 214%

Net debt (US$mm) 548.3 127.5 + 330%

Effective tax rate (%) 43% 42% + 1%

Revenue (US$mm) 596.7 319.4 + 87%

Operating profit (US$mm) 268.2 89.0 + 201%

Normalised profit after tax (US$mm) * 125.1 62.4 + 100%

Profit after tax (US$mm) ** 125.4 45.9 +173%

Operating cash flow before working capital (US$mm) 439.9 199.4 + 121%

Basic profit per share (cents) 12.0 5.0 + 140%

Financial Highlights

Other information

Number of shares in issue: 1,016,720,136

Number of shares (fully diluted): 1,055,950,265 (as at 31 December 2011)

Key Financial Metrics

FY 2011

FY 2011

FY 2010

FY 2010

Change

Change

2011 Full Year Results Summary


* Excludes costs in respect of one-off and non-trading items** Profit from continuing operations after tax

Capital Expenditure Strategy

In 2012, Afren will continue to allocate its capital to projects that offer superior returns for shareholders:

• 2012 development capex budget focused on key projects offshore south east Nigeria and onshore Kurdistan region of Iraq

• Exploration expenditure focused on selective high impact drilling campaign (up to 14 wells) and new seismic acquisition in key areas

Capex Programme


FY 2012 Development Capex by Asset

FY 2012 Capex by Committed/Discretionary

FY 2012 Capex by Category

Ebok 62%

Committed 40%

Development 41%

Okoro 12%

Discretionary 60%

E&A Drilling 38%

Seismic and non-drilling 21%

Barda Rash 26%

US$450-500 mm


March 2012US$mmFacility Type Coupon Profile Repayment Due

A capital structure in place to deliver the next phase of growth:

• Mature debt profile offering financial flexibility - majority of debt long dated 2016/2019

• With forward E&A capex internally funded, and significant additional working capital available, the Company’s ability to capitalise on future organic and inorganic growth opportunities has been greatly enhanced

Current Debt Profile


High Yield Bond 500 Semi-annual coupon of 11.5% • 2016

High Yield Bond 300 Semi-annual coupon of 10.25% • 2019

Ebok RBL 218 LIBOR +4.0% to 5.5% • Up to US$450 million facility

• Repayments commence 2012 through 2015

Corporate facility 50 LIBOR +4.5% • 23 month facility

• Repayment in July 2013

8Afren plcFact Book 2012 8Afren plcFact Book 2012


Barda Rash 60% 1,433 mmbbls ††† • All necessary approvals for the Field Development Plan for Barda Rash were received in 2011

• Undertake a phased development of the field with production start-up scheduled in 2012

• Initial focus on the development of 506 mmbbls of recoverable light oil

Côte d’Ivoire CI-01 65% 37.3 mmboe † • Acquire 3D seismic over the block

• Electromagnetic survey to evaluate the depositional systems

Côte d’Ivoire C1-11 47.96% 4.4 mmboe † • Continuing management of mature production and evaluation of methods to optimise remaining potential

Côte d’Ivoire Lion Gas Plant 100% N/A • Evaluate measures to extract propane at the plant which could be sold locally to industrial customers

Asset

* Effective working interest pre/post cost recovery** FHN working interest; Afren owns 45% of FHN and acts as technical service provider to FHN

All reserves and resources stated as at 31 December 2011

† Source: NSAI†† Source: ERC ††† Source: RPS Energy

Country

EffectiveWorkingInterest

Gross Remaining 2P/2C Reserves & Resources Status Update

Production and Development Opportunities


Nigeria Okoro & Okoro East

95%/50%* 14.7 mmbbls † • Ongoing management of existing production at Okoro main field with the objective of optimising the oil recovery factor

• Drilling of two new production wells targeting Okoro East reserves

• Work up full field development plan for Okoro East

Nigeria Ebok 100%/50%* 102.3 mmbbls † • Drilling of further four horizontal production wells in 2012

• One exploration well to test the Ebok North Fault Block

Nigeria Okwok 70%/56%* 51.8 mmbbls † • Drilling of one appraisal well at Okwok Field

• Submission of Field Development Plan

Nigeria OML 26 45%** 184 mmboe ††(Ogini & Isoko)144 mmboe(Aboh, Ovo, Ozoro)

• Proposed forward work programme (including facilities upgrade) is expected to increase production to more than 40,000 bopd

• Mobilise a land rig to the field location in order to commence drilling new development wells and undertake debottlenecking work of surface facilities

Nigeria Ebok North Fault Block 100%/50%* 35 1

Nigeria Okwok 70%/56%* 70 1

Nigeria OML 115 100%/50%* 60 1

Nigeria OPL 310 70% 250 1

Kurdistan region of Iraq Ain Sifni 20% 917 3

Ethiopia Blocks 7 & 8 30% TBC 1

Kenya Block 1 50% - -

Kenya Block 10A 20% 100 1

Kenya L17/L18 100% 60 1

Madagascar Block 1101 90% - -

Seychelles Areas A, B, C 75% - -

Tanzania Tanga Block 74% 200 1

Congo La Noumbi 14% TBC 2

Côte d’Ivoire Block CI-01 65% - -

Ghana Keta Block 35%** 325 1

JDZ Block 1 JDZ 4.41% 193 2

South Africa Block 2B 25%*** - -

Asset

* Effective working interest pre/post cost recovery ** Afren is carried through the drilling of an exploration well at the Keta Block (Ghana)*** Subject to customary approvals: working interest increases to 50% and operatorship transfers to Afren upon completion of seismic programme

Appraisal drilling

Exploration drilling

Seismic acquisition / processing

Ongoing technical studies and evaluation

Country

Work Programme

Effective WorkingInterest (%)

P50 Prospective Resources mmboe

Number of E&A Wells Planned

Exploration and Appraisal Programme


A

A

A

E

E

E

E

E

E

E

E

E

E

E

E

S

S

S

S

S

S

S

S

S

S

O

O

O

31 December 2010 77.5 - 77.5 0.4 11.2 2.3

Revisions of previous estimates (2.4) - (2.4) 0.2 0.8 0.4

Discoveries and extensions - - - - - -

Acquisitions - - - - - -

Divestments - - - - - -

Production (6.2) - (6.2) (0.1) (2.5) (0.6)

At 31 December 2011 68.9 - 68.9 0.5 9.5 2.1

31 December 2010 107.3 - 107.3 13.3 77.2 26.6

Revisions of previous estimates (2.4) - (2.4) 0.2 0.8 0.4




Production (6.2) - (6.2) (0.1) (2.5) (0.6)

At 31 December 2011 98.7 - 98.7 13.4 75.5 26.4

31 December 2010 29.8 - 29.8 12.9 66.0 24.2

Revisions of previous estimates - - - - - -




At 31 December 2011 29.8 - 29.8 12.9 66.0 24.2

NigeriaGROUP PROVED AND PROBABLE RESERVES

CONTINGENT RESOURCES

TOTAL RESERVES AND CONTINGENT RESOURCES

Côte d`IvoireOil

(mmbbl)Oil

(mmbbl)mmboe mmboeGas(bcf)

Gas(bcf)

• Reserves and resources above are stated on a working interest basis (i.e. for the Nigerian contracts our net effective ultimate working interest based on working interest to payback (95% to 100%) and WI post payback (50%))

• Proved plus Probable (2P) reserves have been prepared in accordance with the definitions and guidelines set forth in the 2007 PRMS approved by the SPE

• Contingent resources are those quantities of petroleum that are estimated to be potentially recoverable from known accumulations but for which the projects are not yet considered mature enough for commercial development due to one or more contingencies

• NGL output and the wholly Afren owned Lion Gas Plant is not included in 2011 production

• Quantities of oil equivalent are calculated using a gas-to-oil conversion factor of 5,800 scf of gas per barrel of oil equivalent

• The oil price used by NSAI and RPS Energy for their independent reserve and resource assessments at 31/12/11 was US$100/bbl flat

• The Group provides for depletion and amortisation of tangible fixed assets on a net entitlement basis, which reflects the terms of the licenses and agreements relating to each field

Net Reserves and Resources Summary


- - - - - - 77.9 11.2 79.8

- - - - - - (2.2) 0.8 (2.0)

- - - - - - - - -

- - - 114.0 - 114.0 114.0 - 114.0

- - - - - - - - -

- - - - - - (6.3) (2.5) (6.8)

- - - 114 - 114 183.4 9.5 185.0

1.9 - 1.9 - - - 122.4 77.2 135.7

- - - - - - (2.2) 0.8 (2.0)

- - - - - - - - -

- - - 868.2 - 868.2 868.2 - 868.2

- - - - - - - - -

- - - - - - (6.3) (2.5) (6.8)

1.9 - 1.9 868.2 - 868.2 982.1 75.5 995.1

1.9 - 1.9 - - - 44.5 66.0 55.9

- - - - - - - - -

- - - - - - - - -

- - - 754.2 - 754.2 754.2 - 754.2

- - - - - - - - -

1.9 - 1.9 754.2 - 754.2 798.7 66.0 810.1

Nigeria -São Tomé & Príncipe JDZ

Kurdistanregion of Iraq Total Group

Oil (mmbbl)

Oil (mmbbl)

Oil (mmbbl)mmboe mmboe mmboe

Gas(bcf)

Gas(bcf)

Gas(bcf)


Okoro 50% Production Sharing Technical Services Agreement

• Companies Income Tax Act

• Education Tax

Okoro East 50% Production Sharing Technical Services Agreement

• Companies Income Tax Act

• Education Tax

Ebok 100%/50%* Royalty Tax Concession • Petroleum Profit Tax

• Education Tax

Okwok 70%/56%* Royalty Tax Concession • Petroleum Profit Tax

• Education Tax

OPL 907 41%** PSC • Petroleum Profit Tax

• Education Tax

OPL 917 42%** PSC • Petroleum Profit Tax

• Education Tax

OPL 310 91%/70%* Royalty Tax Concession • Petroleum Profit Tax

• Education Tax

OML 115 100%/50%* Royalty Tax Concession • Petroleum Profit Tax

• Education Tax

Asset Working Interest Contract Type Taxes Applicable

* Effective working interest pre/post cost recovery** AGER effective working interest; AGER is owned 50% by Afren, 50% by Global Energy Company (GEC)

Nigeria - Contract Overview



Côte d’Ivoire CI-01 65% PSC • Paid on behalf of the Contractor by the Government

Côte d’Ivoire CI-11 47.96% PSC • Paid on behalf of the Contractor by the Government

Congo La Noumbi 14% PSC • Paid on behalf of the Contractor by the Government

Ghana Keta 35% Royalty Tax Concession

• Income Tax

• Additional oil entitlement payment

Nigeria São Tomé Block 1 4.41% PSC • Petroleum Profit Tax

South Africa Thombo 25% Royalty Tax Concession

• Income Tax

Country Asset Taxes ApplicableContract TypeWorkingInterest

Other West Africa - Contract Overview

Ethiopia Blocks 7/8 30% PSC • Income Tax

Kenya Block 1 50% PSC • Paid on behalf of the Contractor by the Government

Kenya Block 10A 20% PSC • Paid on behalf of the Contractor by the Government

Kenya Block L17/18 100% PSC • Paid on behalf of the Contractor by the Government

Madagascar Block 1101 90% PSC • Income Tax

Seychelles Areas A,B,C 75% Royalty Tax Concession

• Petroleum Income Tax

Tanzania Tanga Block 74% PSC • Income Tax

Country Asset Taxes ApplicableWorkingInterest

Contract Type

East Africa - Contract Overview



Barda Rash 60% PSC • Paid on behalf of the Contractor by the Government

Ain Sifni 20% PSC • Paid on behalf of the Contractor by the Government

Asset Taxes ApplicableWorkingInterest

Contract Type

Kurdistan Region of Iraq - Contract Overview

Afren plc

Kinnaird House 1 Pall Mall East London SW1Y 5AU England

T: +44 (0)20 7864 3700 F: +44 (0)20 7864 3701 Email: [email protected]

Afren Nigeria

1st Floor, The Octagon 13A, A.J. Marinho Drive Victoria Island Annexe Lagos, Nigeria

T: +234 (1) 1279 6000

Afren Côte d’Ivoire, Limited

Avenue Delafosse Prolongée RDC Résidence Pelieu 04 B P 827 Abidjan 04 Côte d’Ivoire

T: +225 20 254 000 F: +225 20 226 229

Afren Resources USA, Inc

10001 Woodloch Forest Drive Suite 360 The Woodlands Texas 77380 USA

T: +1 281 363 8600 F: +1 281 292 0019

Afren East Africa Exploration Limited

Room No. 2 Mezzanine Floor Hughes Building Muindi Mbingu Street Nairobi Kenya

Afren Middle East and North Africa

Villa No.293 English village compound Gulan Street Erbil Kurdistan Region of Iraq

T +44 (0) 207 104 2882

For more information go onlinewww.afren.com

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