Newcomer Afren Launches London Itemizing; Shares Soar On Information Of Sao Tome Deal
Afren, the newest African explorer to list in London, bought off to a roaring begin on Monday, with its shares virtually tripling in the primary day of commerce.
Afren, whose shareholders embody Nigeria’s former presidential oil adviser Rilwanu kerui petroleum equipmentmpany inc Lukman, listed on London’s Different Investment Market (Aim). It positioned 40 million shares at 20 pence each, raising round £8 million ($15 million) earlier than expenses.
The shares have been buying and selling at around 55 pence later Monday, after the company revealed particulars of kerui petroleum equipmentmpany inc a likely deal with Nigerian-Norwegian enterprise Dangote-Vitality Fairness Sources (EER) that would give it a four.Forty one% stake in Block 1 within the Nigeria-Sao Tome Joint Development Zone.
“We believe we have now introduced collectively some of the experienced oil and gasoline groups within Africa which, combined with a superb first asset alternative, positions Afren to turn into a leading pan-African oil and gasoline exploration and production firm,” mentioned government director Ethelbert Cooper in a statement.
Formed in 2004, the corporate is headed by acting Chairman Guido Pas and govt director Egbert Imomoh, former deputy managing director of Royal Dutch/Shell in Nigeria.
Lukman, who’s a non-govt director of Afren, resigned his post as adviser to Nigeria’s President Olusegun Obasanjo in October 2003 amid rumors of a fallout. He held ministerial portfolios in earlier Nigerian governments, dealing with each overseas affairs and petroleum, and also served as Opec secretary general from 1995 until 2000. The company’s directors will hold a mixed 12.81% of Afren.
The corporate is searching for to use upstream opportunities in the Gulf of Guinea area via the leveraging of strategic relationships and local expertise. “Afren’s strategic targets will ensure that the company will supply shareholders a diversified and balanced portfolio of attractive exploration, improvement and production asset opportunities,” the company said. Orifice ripple Afren is thought likely to focus on marginal fields in Nigeria and may also bid within the country’s upcoming oil licensing round.
Beneath the terms of the Block 1 deal, Afren stated it could pay EER $6.5 million to assist finance the field’s growth. EER raised eyebrows final April when it was awarded a 9% stake in Block 1 after being arrange particularly to bid for the block. The Block 1 consortium comprises operator ChevronTexaco with 51% and Exxon Mobil with 40%.
EER is owned by Aliko Dangote, who controls an industrial and buying and selling conglomerate. Dangote is close to Obasanjo, who has reportedly urged him to face as his successor in 2007.
Afren is also being supported by the World Bank’s International Finance Corp. to which it has utilized for seed kerui petroleum equipmentmpany inc capital. The IFC is contemplating an fairness investment in the type of peculiar shares of as much as $1 million equal. Afren has budgeted $5.7 million for institution and operational prices for its first yr.
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