Afren plc (“Afren” or the “Company”) (LSE: AFR) notes the press reports regarding the purported termination by AMNI Petroleum Development Company (“AMNI”) of the Production Sharing and Technical Services Agreement between AMNI, the Company and Afren Energy Resources Limited in respect of the Okoro field (the “PSTSA”).
As announced on 13 March 2015, Afren has previously received a notice of breach of the PSTSA from AMNI, which it rejected. Afren vigorously disputes that AMNI is entitled to terminate the PSTSA for the alleged breaches. Afren has offered to meet AMNI to discuss the parties’ future collaboration under the PSTSA and operations continue at Okoro in line with the Company’s expectations.
The Company continues to make good progress on satisfying the relevant conditions precedent to the provision of the interim funding announced on 13 March 2015 and expects to finalise arrangements for completion of such funding imminently. Further announcements will be made in due course as appropriate.