2. Our Business at a Glance
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 Nigeria 4 Congo Brazzaville
Highlights: Highlights:
• Nine interests in Blocks spanning • La Noumbi permit adjacent to, and
shallow water offshore and onshore on trend with, the large M’Boundi
areas field – one of Africa’s largest onshore
• Initial phases of the Ebok discoveries
development now fully onstream, • Working petroleum system
development ongoing in 2012 demonstrated on the Block, with
• OML 26 acquisition completed prospectivity identified at several
intervals
• Okoro onstream in 2008. Good
reservoir management moving • Two exploration wells proposed in
recovery factor towards the 3P 2012 by the operator
scenario and production maintained
consistently ahead of pre start-up
expectations
• Significant oil discovery at Okoro East
5 Nigeria – São Tomé Nigeria
• Maturing Okwok towards & Príncipe JDZ Ghana 1,040
development status 1,412 mmbbls
• High-impact exploration drilling at Highlights:
mmbbls Gross reserves
Ebok, OML 115 and OPL 310 in 2012 • Obo-1 discovery well encountered and resources
Gross
• Regional office in Lagos 150ft of oil pay in 2006 prospective
• New operator, Total, proposed the resources
drilling of one appraisal well on the
Obo discovery and one exploration
2 Côte d’Ivoire well in 2012
• Proximity of Total’s existing
Highlights: infrastructure in offshore Nigeria
offers potential synergies that could
• Two upstream Blocks and a gas
enhance development prospects for
processing plant
the Block
• Oil, natural gas and NGL production
• Effective management of mature
production at Block CI-11
• Exciting appraisal and exploration 6 South Africa Côte d’Ivoire
opportunities at Block CI-01, adjacent 129
to maritime border with Ghana
• Regional office in Abidjan
Highlights: mmboe
• Block 2B located in the Orange River Gross reserves
Basin close to the Ibhubesi gas field and resources
– covers an area of around 5,828 km2
with water depths ranging from
3 Ghana shoreline to 250 m
• A-J1 oil discovery tested 36º API oil
Highlights: Congo
in 1989
29
• Keta Block located along the prolific (Brazzaville)
• Multiple prospects identified
West African Transform Margin
• 600 km2 of new 3D seismic data to
252
• Large scale prospectivity identified
in Upper Cretaceous, analogous to
be acquired ahead of expected mmbbls
recent major discoveries in Ghana
exploration drilling in 2012 Assets across Africa Gross
and the Middle East prospective
• Successful farm down of 35% interest resources
and operatorship to Eni in return for
12
a full carry through the exploration
drilling of one well in 2012. Afren still
retains a 35% interest
Nigeria –
São Tomé
Countries with world & Príncipe JDZ
class potential 393 mmbbls
Gross contingent
and prospective
Production resources
Development
Appraisal
Exploration
Afren plc
1 Fact Book 2012
3. 12 Kurdistan region of Iraq
Highlights:
• Two Production Sharing Contracts: • The Barda Rash PSC is located 55 km
60% operated interest in Barda Rash north-west of Erbil. Production start
and 20% non-operated interest in up in 2012
Ain Sifni
• The Ain Sifni PSC is located
• Large scale discovered but approximately 70 km north-west of
undeveloped resource base with low Erbil. Substantial low risk volumes in
risk/high volume upside a proven oil bearing play
Kurdistan region of Iraq • Low unit cost reserve growth • Regional office in Erbil
(US$0.68 2P/2C bbl compares
1,475 very favourably to other regional
mmbbls transactions during the period)
Gross 2P and 2C reserves
and resources
Kenya
1,095 7 Ethiopia 10 Madagascar
mmbbls
Gross Ethiopia Highlights: Highlights:
prospective • Blocks located in the high potential • Block 1101 is located on the Eastern
resources 157 Ogaden Basin flank of the Ambilobe basin onshore
mmbbls • Blocks 7 and 8 have good oil shows Northern Madagascar
Gross in Jurassic and gas shows in Triassic • Three major structures mapped close
prospective • Work ongoing to further interpret to existing well with oil shows
resources the prospectivity of Blocks 7 and 8 • Proven oil accumulations in the Isalo
• Seismic acquisition completed formation in Central Madagascar
in 2010 with exploration drilling at Bemolanga and Tsimiroro are
planned for 2012 evidence of large scale oil potential
• Afren’s operated interest has
increased to 90%
8 Kenya • Seismic acquisition and exploration
drilling scheduled for 2013
Seychelles
464 Highlights:
mmbbls • Four Blocks in high potential rift and
coastal basins – all have evidence of
Gross
prospective
working hydrocarbon systems 11 Tanzania
resources • L17/L18 – coastal to shallow water
marine setting. Exploration drilling in Highlights:
2012 contingent on rig availability • The Tanga Block is a 7,064 km2
• Block 1 – onshore acreage licence lying directly south of and
contiguous with Ogaden basin in adjoining Afren’s Kenyan Blocks L17
Ethiopia; acquiring 1,200 km of new and L18
2D seismic • Large scale prospectivity and
• Block 10A – exploration drilling numerous additional leads identified
scheduled for 2012 • Seismic acquisition completed and
South Africa Tanzania • Regional office in Nairobi exploration drilling planned for 2012
350 1,387
mmbbls mmbbls
Gross Gross 9 Seychelles
prospective prospective
resources resources 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
Madagascar Jurassic sedimentary sections
191 • Main exploration target is the Permo-
Triassic Karoo interval, which comprises
mmbbls non-marine sands inter-bedded with
Gross shales
prospective • New seismic acquisition in 2011 ahead
resources of exploration drilling
Afren plc
Fact Book 2012
2
4. 2011 Highlights
Production by Type (FY 2011) Production by Country (FY 2011)
19,154 boepd 19,154 boepd
Oil 91% Nigeria 89%
Gas 9% Côte d’Ivoire 11%
Revenue by Type (FY 2011) Revenue by Country (FY 2011)
US$596.7 mm US$596.7 mm
Oil 97% Nigeria 92%
Gas 3% Côte d’Ivoire 8%
Net 2P & 2C Reserves and Resources Net Prospective Resources
995 mmboe 3,515 mmboe
Barda Rash 859.8 Tanzania 1,026.4
Ebok 61.1 Nigeria 530.5
Okwok 29.0 Kenya 519.3
CI-01 24.2 Ghana 494.2
Ain Sifni 8.4 Seychelles 347.7
Okoro 7.8 Kurdistan 183.4
CI-11 2.1 Madagascar 172.3 Ethiopia 47.0
Block 1 1.9 South Africa 87.5 Congo 35.2
Setu 0.8 Côte d’Ivoire 56.7 JDZ 15.0
Afren plc
3 Fact Book 2012
5. 2011 Full Year Results Summary
Financial Highlights FY 2011 FY 2010 Change
Revenue (US$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%
* Excludes costs in respect of one-off and non-trading items
** Profit from continuing operations after tax
Key Financial Metrics FY 2011 FY 2010 Change
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%
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)
Afren plc
Fact Book 2012
4
6. Capex Programme
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
Afren plc
5 Fact Book 2012
7. FY 2012 Capex by Category
US$450-500 mm
Development 41%
E&A Drilling 38%
Seismic and non-drilling 21%
FY 2012 Development Capex
by Asset
Ebok 62%
Barda Rash 26%
Okoro 12%
FY 2012 Capex by Committed/Discretionary
Discretionary 60%
Committed 40%
Afren plc
Fact Book 2012
6
8. Current Debt Profile
March 2012
Facility Type US$mm Coupon Profile Repayment Due
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
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
Afren plc
7 Fact Book 2012
10. Production and Development Opportunities
Effective Gross Remaining
Working 2P/2C Reserves
Country Asset Interest & Resources Status Update
Nigeria Okoro & 95%/50%* 14.7 mmbbls † • Ongoing management of existing production at
Okoro East 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 †† • Proposed forward work programme (including
(Ogini & Isoko) facilities upgrade) is expected to increase
144 mmboe production to more than 40,000 bopd
(Aboh, Ovo, Ozoro) • Mobilise a land rig to the field location in order
to commence drilling new development wells
and undertake debottlenecking work of surface
facilities
Kurdistan Barda Rash 60% 1,433 mmbbls ††† • All necessary approvals for the Field Development
region of Iraq 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
* Effective working interest pre/post cost recovery
** FHN working interest; Afren owns 45% of FHN and acts as technical service provider to FHN
† Source: NSAI
†† Source: ERC
††† Source: RPS Energy
All reserves and resources stated as at 31 December 2011
Afren plc
9 Fact Book 2012
12. Exploration and Appraisal Programme
P50
Effective Prospective Number of
Working Resources E&A Wells Work
Country Asset Interest (%) mmboe Planned Programme
Nigeria Ebok North Fault Block 100%/50%* 35 1 E
Nigeria Okwok 70%/56%* 70 1 A S
Nigeria OML 115 100%/50%* 60 1 E S
Nigeria OPL 310 70% 250 1 E S
Kurdistan region of Iraq Ain Sifni 20% 917 3 E S
Ethiopia Blocks 7 & 8 30% TBC 1 E
Kenya Block 1 50% - - S
Kenya Block 10A 20% 100 1 E
Kenya L17/L18 100% 60 1 E S
Madagascar Block 1101 90% - - S
Seychelles Areas A, B, C 75% - - S
Tanzania Tanga Block 74% 200 1 E S
Congo La Noumbi 14% TBC 2 E
Côte d’Ivoire Block CI-01 65% - - O
Ghana Keta Block 35%** 325 1 E
JDZ Block 1 JDZ 4.41% 193 2 A E
South Africa Block 2B 25%*** - - O
* 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
A Appraisal drilling
E Exploration drilling
S Seismic acquisition / processing
O Ongoing technical studies and evaluation
Afren plc
11 Fact Book 2012
14. Net Reserves and Resources Summary
Nigeria Côte d`Ivoire
GROUP PROVED AND Oil Gas Oil Gas
PROBABLE RESERVES (mmbbl) (bcf) mmboe (mmbbl) (bcf) mmboe
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
CONTINGENT RESOURCES
31 December 2010 29.8 - 29.8 12.9 66.0 24.2
Revisions of previous estimates - - - - - -
Discoveries and extensions - - - - - -
Acquisitions - - - - - -
Divestments - - - - - -
At 31 December 2011 29.8 - 29.8 12.9 66.0 24.2
TOTAL RESERVES AND CONTINGENT RESOURCES
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
Discoveries and extensions - - - - - -
Acquisitions - - - - - -
Divestments - - - - - -
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
• 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
Afren plc
13 Fact Book 2012
16. Nigeria - Contract Overview
Asset Working Interest Contract Type Taxes Applicable
Okoro 50% Production Sharing Technical • Companies Income Tax Act
Services Agreement • Education Tax
Okoro East 50% Production Sharing Technical • Companies Income Tax Act
Services Agreement • 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
* Effective working interest pre/post cost recovery
** AGER effective working interest; AGER is owned 50% by Afren, 50% by Global Energy Company (GEC)
Afren plc
15 Fact Book 2012
17. Other West Africa - Contract Overview
Working
Country Asset Interest Contract Type Taxes Applicable
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 • Income Tax
Concession • Additional oil entitlement payment
Nigeria São Tomé Block 1 4.41% PSC • Petroleum Profit Tax
South Africa Thombo 25% Royalty Tax • Income Tax
Concession
Afren plc
Fact Book 2012
16
18. East Africa - Contract Overview
Working Contract
Country Asset Interest Type Taxes Applicable
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 • Petroleum Income Tax
Concession
Tanzania Tanga Block 74% PSC • Income Tax
Afren plc
17 Fact Book 2012
19. Kurdistan Region of Iraq - Contract Overview
Working Contract
Asset Interest Type Taxes Applicable
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
Afren plc
Fact Book 2012
18
20. 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: info@afren.com
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 For more information go online
Room No. 2 Mezzanine Floor
www.afren.com
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
