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Afren achieved a 100% appraisal drilling success rate at the Ebok field in 2009 – as we successfully proved the existence of additional reserves in the Central Fault Blocks, West Fault Block and Southern Lobe area of the field. The impact on project reserve estimates has been considerable, with NSAI independently certifying gross 2P reserves of 107.5 mmbbls with additional gross unrisked upside potential of 159.7 mmbbls.

We have put in place the necessary capital and human resources to develop the Ebok field, and we have a proven track record of project delivery – we are on track to achieve first oil in October 2010.

Recognising the substantial hydrocarbon potential in the area, we were quick to expand our footprint with the acquisition of interests in and commitment to explore, appraise and develop the Okwok field, located 16 km east of Ebok, and the surrounding OML 115 acreage. We have established a sizeable acreage position in a prolific part of the offshore Niger Delta with near term development, appraisal and exploration upside. Through establishing early production and installing the required infrastructure at Ebok, we are well positioned to leverage on our advanced understanding of the subsurface and operational synergies across the assets to unlock the true potential of this core area.

Exploration is fundamental to the organic growth of Afren. We have built a balanced, high-grade portfolio of exploration assets that offer exposure to multiple potentially transformational drilling opportunities. These have been selected to provide a mix of options across different play types. One of the key areas for Afren is the West African Transform Margin and Upper Cretaceous fairway where we have secured world-class acreage positions in the Keta Block offshore Ghana, Block CI-01 offshore Côte d’Ivoire and OPL 310 offshore South East Nigeria in the Benin Basin.

We focus our exploration efforts on areas where we have advanced geological knowledge and within basins that are under-explored – yet which have proven, working hydrocarbon systems. This means we are active in areas where there is potential for large discoveries – but also in areas in which we have a competitive advantage through our collective knowledge and expertise.

Strong production performance
We have established production operations in both Nigeria and Côte d’Ivoire, where we are producing both oil and natural gas with additional natural gas liquid (NGL) output from our wholly owned midstream gas processing plant.

In 2009 we benefited from our first full year of production, achieving an average rate of 22,100 boepd working interest upstream production and NGL output over the period.

Okoro
Okoro has consistently produced ahead of pre start-up expectations with an average gross rate of 18,800 bopd achieved in 2009 (17,900 bopd working interest share). Better than forecast reservoir properties and good aquifer support mean that production is now expected to decline at a slower rate than previously thought, which in turn has had a positive impact on the volumes that can be ultimately recovered.

Furthermore, our production experience to date and additional data gathered has allowed us to identify at least two infill well locations that should further increase reserves and add incremental production in the future.

CI-11
We have two producing fields on Block CI-11, the Lion and Panthère oil and gas fields which currently produce approximately 1,230 bopd and 30 mmcfd (on a gross basis; 590 bopd and 14 mmcfd working interest share). In 2009 we undertook a re-evaluation of the subsurface, integrating all available log, core and seismic data. This has revealed a number of potentially productive new reservoirs – as well as other infill drilling and missed pay opportunities.

Lion Gas Plant
The Lion Gas Plant receives and processes gas from Block CI-11 and also the Canadian Natural Resources operated Espoir and Baobab fields. We strip both gasoline and butane from the rich gas stream, with the ability to handle up to 75 mmcfd of inlet gas volumes. The butane is sold locally, meeting approximately 35% of domestic demand, whilst the gasoline is spiked into the Lion crude stream and sold internationally. Average output at the plant in 2009 was 1,140 boepd.

Outlook
The Ebok field is due onstream in October 2010 and is set to provide a step change to our production outlook. With Ebok development drilling expected to continue throughout 2011, supplemented by an exciting inventory of appraisal and exploration drilling targets, the Group has visibility over a growth trajectory that is set to more than double Group production over the next 12 months.