Main market plans boost Afren

Oil and gas company Afren (AFR) was storming ahead on Wednesday, after announcing plans to switch London's AIM market for the bright lights of the main market.
 
The oil and gas company will be granted admission in early December following four years of 'significant' growth.
 
The pan-African company now possesses a portfolio of 16 assets spanning six African countries, namely Nigeria, Cote d'Ivoire, Congo Brazzaville, Gabon and Nigeria Sao Tome and Principe Joint Development Zone.
 
Osman Shahenshah, chief executive of Afren, commented: "During the last four years, Afren has established itself as a leading London listed African independent. Afren has delivered both acquisition led and organic reserves and production growth.
 
"The board now considers, having regard to the company's established track record, upgraded reserves and resource base, operational achievements and future production and reserves outlook, the Official List to be a more appropriate platform for the continued growth of the group."
 
In a sign that Afren has no plans to halt its growth strategy, it announced a newly acquired 70% interest in the OPL 310 block, located in the Benin Basin offshore western Nigeria. Originally awarded to indigenous company Optimum Petroleum in 1992, Afren has moved into the block as technical operator.
 
Located next to the highly-regarded Aje field, Afren said the prospect "represents a high impact shallow to deep water exploration opportunity." Existing seismic data covering the area has already been acquired and Afren now plans to start additional tests on the prospectivity of the block in order to map out a forward plan.
 
Afren said its latest acquisition complemented its Block C1-01 and Keta Block interests, helping to put together an "attractive, high impact exploration inventory in one of Africa's most prolific emerging oil and gas plays."
 
The company's overall drilling activity is targeting over 600 million barrels of oil equivalent by 2011, further expanding production to 100,000 million barrels of oil equivalent by the end of 2012.
 
Investors discussing the news on the Interactive Investor Afren discussion board hoped the news would help to raise the company's share value further.
 
fish toy commented: "There is just so much more on the near term horizon, that I don't see how the share price can stay as low as it is... The way in which Afren quoted "Producing 100,000 by 2012" sounded so confident and sure, that I don't think we'll have to wait that long to get a well deserved re-rating to 350p-400p."
 
bardofarmagh added: "I have quite a large holding in AFR and the factual information provided gives me a basic sense of security in this share."
 
NewKOTB reiterated the sentiment by summing up: "With the expected increase in production between now and 2012 we should see a steady and continued growth in share price. At a very basic level we could be looking at five times the share price within two years, now that's serious money."
 
Afren's share price was currently at 94p after rising 7p.