03/12/2009 The London Stock Exchange welcomes Afren to the Main Market
Afren plc (“Afren”) is an independent oil and gas exploration and production company that was founded in 2004 and admitted to AIM on 14 March 2005. Afren has a diversified portfolio of 16 assets across six African countries: Nigeria, Côte d’Ivoire, Ghana, Congo Brazzaville, Gabon and offshore Nigeria and São Tomé & Príncipe JDZ. Afren’s portfolio encompasses producing, development, appraisal and exploration opportunities that provide a balanced platform and opportunity set from which to deliver further significant organic growth.
Today, Afren’s entire ordinary issued share capital has been admitted to the Official List of the UK Listing Authority and to trading on the London Stock Exchange’s main market for listed securities (“Main Market”).
In conjunction with joining the Main Market, Afren has completed a placing to institutional investors of 129.5 million new shares and the sale by the Founder Shareholders, including certain Directors, of 24.5 million Founder Shares (following the exercise of 40 million warrants) at a placing price of 81 pence per ordinary share to raise, in aggregate, approximately £105 million (before expenses). In addition, the exercise of 40 million warrants has raised approximately £15 million for the company. The net proceeds of the Placing will be used to fund an accelerated appraisal and development of the broader Ebok-Okwok complex, including US$50 million for the development of production facilities on Ebok, US$30 million to fund infill drilling on the Okoro field, and approximately US$35 million on further appraisal and infill drilling of Afren’s Côte d’Ivoire assets.
Regarding Admission, Osman Shahenshah, Chief Executive of Afren, commented:
“The Board now considers, having regard to the company’s established track record, upgraded reserves and resource base, operational achievements and future production and reserves outlook, the Official List to be a more appropriate platform for the continued growth of the group.”
The Admission was sponsored by Merrill Lynch International.