The United Kingdom based oil explorer, which primarily works in Iraq and Africa, Afren Plc. has gone ahead to touch its highest level in the last 18 months. Speculations are rife that the drilling results from the Paipai well in Kenya will soon be publicly available.
The share prices of Afren jumped up by 9.2% and are currently at 152 pence per share. This marks its highest value since July, 2011. When it comes to volume of Afren stocks changing hands, the figure was 10% higher than the 3-month average.
According to a trader of Securequity Ltd., Jawaid Afsar, Afren is currently on high as the rumors are rife on the upcoming results from the Paipai prospects. Incidentally, apart from Afren, others such as Africa Oil and Tullow Oil also have stakes in the Paipai project. Today, Tullow Oil also surged higher as it experienced an increase of 3.5%. Each of its shares is currently priced at 1195 pence. Africa Oil however had a different fate as it declined by 0.9% and each of the shares is currently priced at C$7.52.
One of the external spokesmen of Afren was asked on this matter. However, he declined to make any comment on the same. Incidentally, on 21st January, one of the Associate Directors of Afren, Galib Virani stated that Tullow Oil should get into a position to make some sort of announcement on the Paipai well within the next 3 weeks or so. This generated huge buzz in the industry of release of report on Paipai well.
Incidentally, Afren has numerous oil fields in Iraq’s Kurdistan region and in 2012, the share prices of the company jumped up by 53%. This huge surge was attributed mainly by the fact that Eni SpA of Italy and Exxon Mobile Corp. submitted an examination report of Afren.
Afren is currently considering to increase its crude oil reserve and for the same, it is going to conduct a multi-well exploration and appraisal drilling campaign in both the new and established basins. In the meantime, it will continue to contribute to the current production base.
Osma Shahensha, the Chief Executive Officer of Afren stated that currently, Afren is well positioned because of the robust cash flows. The balance sheet is strong and it has the capacity and flexibility to develop a portfolio of better quality.