Nigeria-based Seplat Petroleum Development confirmed Afren’s “highly preliminary approach” regarding a possible merger of the two companies made on 22 December.
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Image from Afren. |
In a statement released by Seplat, the company said, “There can be no certainty that an offer will be made or as to the terms of any offer.”
London-based and Africa-focused Afren has until 19 January to either announce its firm intention to make an offer or that the company does not intend to make an offer to Seplat. However, according to the statement, Seplat says the dealine can be extended with the consent of the UK Takeover Panel.
In November, Afren spudded the Ameena East prospect located in OML 115, offshore Nigeria with joint venture partner Oriental Energy Resources. The Ameena East-1 exploration well is targeting 65MMbbls of gross unrisked resources in Biafra sands below the regional basal Qua Iboe unconformity, equivalent to those at the Ebok and Okwok fields.
In October, Afren fired its CEO Osman Shahenshah and COO Shahid Ullah for “gross misconduct” after completing an independent investigation into unauthorized payments.
Results of the investigation by law firm Willkie Farr & Gallagher (UK) LLP (WFG) showed that all three transactions regarding Nigerian oil fields should have been reported to the market under listing rules. WFG also concluded that Shahenshah and Ullah used funds from the transactions to pay out large bonuses to themselves ($17.1 million for Shahenshah and Ullah) and nine other Afren employees. Shahenshah co-founded Afren in 2004 with Ethelbert Cooper.
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