LONDON (ShareCast) - Africa focussed oil and gas firm Afren saw losses more than double in 2007 due to increased development activities but said the year saw “tremendous operational and acquisition-led progress.”
Loss before tax widened to $39m from $15.8m due largely to exploration write-offs of $12m. The company currently has no revenue as all of its wells are in the development stage. Afren is targeting 15,000 to 20,000 barrels of oil per day in 2008 from five development wells.
Cash reserves at the end of 2007 had risen to $91.8m from $35.7m at the end of 2006, with long-term debt of $146.7m.
The company said it remains in a strong position and will benefit during 2008 from the first revenues from its Cote d’ivoire and Nigerian interests.
“The acquisition and strategic entry into Cote d'Ivoire provides immediate production, we expect production ramp-up from the Okoro Setu Project and the Eremor field and look ahead to an exciting high impact exploration programme from the existing portfolio,” the company said.
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