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UK Afren completes USD588.25m acquisition in Iraq.

MANews-(C)2009-2011

2 November 2011 - British oil and gas production company Afren Plc (LON:AFR) announced it had completed the acquisition of 60%A in Barda Rash product sharing contract (PSC) and 20%A in Ain Sifni PSC in the Kurdistan region in Iraq for USD588.25m (EUR427.2m).

Under the deal, Afren has to pay USD388.25m of the price on completion and USD200m in six months, funded by a combination of its loan facility, cash and an equity placement in July 2011, the buyer said in a statement.

Osman Shahenshah, CEO of Afren, comments in a statement that the deal is consistent with the oil and gas company's strategy of acquiring low-cost barrels in areas of strategic advantage and increases its current 2P and 2C recoverable reserves base by over 700% at a price of less than USD1A a barrel.Country: Iraq, Sector: Petroleum/Natural Gas/CoalTarget: Ain Sifni PSC, Barda Rash PSCBuyer: Afren PlcVendor: Komet Group SA, Kurdistan Regional GovernmentDeal size in USD: 588.25mType: Corporate acquisitionFinancing: Cash & DebtStatus: Closed

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Publication:M & A Navigator
Geographic Code:7IRAQ
Date:Nov 2, 2011
Words:174
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