Afren plc Page 1

Afren plc (AFR LN)

Interim Management Statement
London, 15 May 2012 - Afren plc (Afren or the Company), announces its Interim Management
Statement and financial results for the three months ended 31 March 2012 and an update on its
operations to 15 May 2012, in accordance with the reporting requirements of the EU Transparency
Directive. Information contained within this release is un-audited and is subject to further review.
Highlights
2012 exploration campaign yielding significant success
- High value discoveries offshore south east Nigeria at Okoro East and Ebok North Fault Block
- Transformational Simrit-2 discovery in Kurdistan region of Iraq; exploration well being
deepened ahead of extensive testing programme
- Ongoing prospect maturation in East Africa with significant data acquisition; 1,570 km total
2D seismic, 9,000 km gravity and magnetic data
- 2012 exploration targeting mean resources of 630 mmboe (net to Afren)
Q1 net production of 41,308 boepd in line with expectations for the period (+327% year-on-year)
- Early production wells on Okoro East to be drilled shortly
- Further development of Ebok field ongoing (four production wells)
- On track for full year net production guidance (42,000 boepd to 46,000 boepd)
Development work underway at Barda Rash field
- On track for first oil in August 2012
Significantly cash generative portfolio
- Turnover US$386.7 million (Q1 2011: US$73.4 million); profit after tax US$53.2 million
(Q1 2011: US$11.1 million loss)
- Net operating cash flow generated of US$300.2 million (Q1 2011: US$12.8 million net
operating cash flow used); US$153.1 million net cash flow generated post capex (Q1 2011:
US$147.2 million net cash flow used post capex)
- Cash at bank US$399.0 million (Q1 2011: US$333.0 million)
Diversified sources of funding; maturing capital structure
- Successfully completed US$300 million bond issue; majority of debt long dated (2016-
2019)
- Net debt US$639.4 million (Q1 2011: US$291.6 million)



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Commenting on todays IMS, Osman Shahenshah, Chief Executive of Afren plc, said:
We have made an excellent start to our 2012 exploration campaign with significant discoveries at
Okoro East, Ebok North fault Block and Ain Sifni. Group production during the first quarter was in line
with our expectations, generating US$300.2 million of net operating cash flow. We look forward to
continuing our exploration programme, with wells in Nigeria, the Nigeria-So Tom & Prncipe JDZ ,
Congo, the Kurdistan region of Iraq and East Africa, targeting in excess of 630 million barrels of oil
equivalent net to Afren.
Operations update
Production to Q1 2012 boepd Working interest Average gross production Average net production
Okoro 50.00% 16,345 8,884
Ebok 100.00% 28,557 28,557
CI-11 & LGP 47.96% / 100% 5,728 3,190
Total 50,630 40,631
Associate company production
(FHN / OML 26)
45%* 3,341 677
Total including associate
company volumes
53,971 41,308
*Afren is a 45% shareholder in First Hydrocarbon Nigeria which owns a 45% interest in OML 26
Net working interest production during the first quarter was in line with expectations and reflects the
management of ongoing development work, simultaneous operations and associated downtime at
the Ebok field during exploration and development drilling. The Company remains firmly on track to
achieve full year net production guidance.
Nigeria
Okoro and Okoro East
On 17 January 2012, Afren and its partner Amni International Petroleum Development Company Ltd.
(Amni) announced that the Okoro East exploration well had successfully made a new oil discovery.
Located approximately 2 km east of the Okoro main field, the well was targeting equivalent reservoirs
to the main field in a fault sealed three-way dip closed structure in addition to further prospectivity in
a deeper horst block structure a play concept that had not previously been explored on the block.
The well encountered net pay of 549 ft across both the upper and deeper targets, and test data
confirmed the oil to be light and of good quality (38 to 40 API) in excellent reservoir sands with
multi-Darcy permeabilities and average porosity of between 30% to 35%. The pressure data also
obtained has helped with the Companys structural understanding of the field and supports the
Companys pre drill volumetric estimates (Pmean STOIIP of 157 mmbbls).
The year ahead will see ongoing management of existing production at the Okoro field with the
objective of optimising the oil recovery factor from the already developed reservoir zones. Afren and
its partner Amni will shortly commence the drilling of two new production wells at Okoro East, whilst
also defining the most appropriate long-term development solution for the entire field.
Ebok and Ebok North Fault Block
Having commissioned all production wells associated with the initial phases of the Ebok field
development in 2011, the Company and its partner Oriental Energy Resources (Oriental) are in the
process of drilling and completing a further four horizontal production wells at the field. The wells
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are being drilled from the West Fault Block wellhead platform and are targeting proved oil bearing
reservoir zones that were not captured by the initial phases of development work.
On 14 May 2012 the Company announced that the Ebok North Fault Block (Ebok NFB) exploration
well has successfully made an oil discovery. The well was spudded on 12 April 2012 by Afren and
Oriental, and reached a total depth of 4,320 ft, with the Transocean Adriatic IX jack-up drilling rig.
The well was targeting a separate fault block structure located to the north of the main Ebok field,
and has successfully encountered 370 ft net pay (TVT) of good quality oil in the same Tertiary
reservoir sands equivalent to those that have been developed and are in production at the main Ebok
field development. The discovery of significant oil pay at this location underlines the high-grade
prospectivity that exists across the wider Ebok/Okwok/OML 115 area, and represents an important
step towards unlocking the full volume and value potential of what is a core hub of Afrens portfolio.
Logging operations at the Ebok NFB well have been completed, with data obtained supporting a
Pmean STOIIP in excess of 100 million barrels of oil, towards the upper end of Afrens pre-drill
expectations. The well will now be suspended whilst Afren and Oriental determine the optimal
development solution for Ebok NFB. This will likely incorporate synergies using the existing
production, storage and offtake infrastructure at the main Ebok field and could involve the early
drilling of new production wells from the existing wellhead platform at Ebok West Fault Block,
followed by a full field development of Ebok NFB. The Transocean Adriatic IX rig will shortly
commence the drilling of early production wells at the recent Okoro East discovery.
Okwok
Processing of the 348 km
2
Ocean Bottom Cable 3D seismic survey that was acquired over the whole
Ebok/Okwok/OML 115 area in late 2011 has been completed, and results are being integrated into
the existing data set. The new data will assist in the optimal placement of one appraisal well at
Okwok during the second half of the year to test upside potential, and development planning prior to
formal submission of a Field Development Plan to the Nigerian authorities. The most likely
development scenario for Okwok comprises the installation of a separate dedicated production
processing platform tied back to and sharing the existing 1.2 mmbbls capacity Ebok Floating Storage
Offloading vessel (FSO) located approximately 13 km to the west.
OML 115
The partners plan to drill an exploration well on the block during the second half of 2012, most likely
targeting the Ufon prospect. The Ufon prospect is a three-way dip closed structure that is
interpreted to have oil prospectivity in the same reservoirs that have proven to be oil bearing at the
nearby Ebok and Okwok fields.
OML 26
During the first quarter, output at OML 26 was restricted to 3,250 bopd owing to gaslift compressor
outage and maintenance work that was undertaken on the SPDC operated Trans Forcados Trunkline
which necessitated a 24 day period of downtime at the Ogini flowstation. Following a review of
gaslift compression strategy at the field, the partners will in the near term seek to optimise
production with the existing compression facilities and ultimately procure and install new compressor
units in the third quarter. At the same time, the partners are evaluating reactivation and workover
opportunities on existing wells prior to the planned commencement of drilling new horizontal wells
in 2013, with the objective of ultimately increasing gross production to 50,000 bopd.
Kurdistan region of Iraq
Barda Rash
Having received all necessary approvals of the Field Development Plan (FDP) for Barda Rash during
November 2011, the Company has commenced the development programme that will initially target
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approximately 500 million barrels of light recoverable oil out of the independently assessed 1.43
billion barrels total recoverable volume.
Phase I development work is focused on the existing BR-1, BR-2 and BR-3 wells that have been drilled
at the field to date. The three wells will be sequentially re-entered, worked over, tested, completed
and bought onstream. The wells will be tied back to a modular Early Production Facility that is being
installed at the central BR-1 well location. Assembly of the Romfor 23 rig has been completed at the
BR-1 well location, and final preparations are being made to re-enter the well. The Company is on
track to commence production at Barda Rash by August, and expects all three wells to be onstream
and producing at a rate of between 10,000 bopd to 15,000 bopd by year end. Acquisition of a
comprehensive block wide 3D seismic survey has also commenced and is progressing well. The
objective of the survey is to provide additional data that will assist in future development planning
and well placement combined with enhancement of the Companys understanding of fracture zone
distribution.
Post completion of this initial phase, the Company will commence the drilling and completion
of multiple new development wells with the intention of increasing production to a planned trucking
capacity of 35,000 bopd and ultimately to a targeted 125,000 bopd by 2017. Following this, the
Company will focus on the development and production of the heavier oil resources, which will offer
further large scale production growth.
Ain Sifni
On 17 April 2012, the Company announced that the Simrit-2 exploration well had discovered a
significant oil accumulation based on the results of drilling, wireline logs and sidewall core sampling.
The objective of the Simrit-2 exploration well was to test the western extent of the Simrit anticline.
The well was initially drilled to its prognosed total measured depth of 12,139 ft (12,129 ft true
vertical depth) and successfully encountered an estimated 1,342 ft of net oil pay in Cretaceous,
Jurassic and Triassic age reservoirs, an estimated 1,024 ft of which is interpreted as containing light
oil. No oil water contact has been established in the target reservoirs.
As there were continuing strong hydrocarbon shows to the planned depth of 12,139 ft, Afren and
operator Hunt Oil Middle East ran casing at that depth and continued drilling to a new total depth of
circa 12,467 ft to test additional zones of prospectivity. Drilling operations are expected to be
completed by the end of May, after which a comprehensive well testing programme will be
undertaken across multiple reservoir intervals. Testing operations are expected to take up to two
months to complete. Following this, the drilling rig will be mobilised to the East Simrit prospect to
drill the Simrit-3 exploration well. Given the scale of the oil column that has been intersected with
the Simrit-2 well, the initial volumetric estimates for the Ain Sifni PSC are being updated to
incorporate the new data.
Cte dIvoire
CI-11 and Lion gas Plant
Production operations continued uninterrupted at the Companys assets in Cte dIvoire during the
period and remain in line with expectations.
CI-01
The partners on Block CI-01 plan to acquire additional 3D seismic to augment the existing well and
seismic dataset. It is believed that the Cretaceous accumulations may be significantly larger than
originally mapped.

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West Africa exploration
Keta Block (Ghana)
The objective of the Nunya-1x exploration well was to explore a large four-way dip closed Upper
Cretaceous prospect in the Keta block, located offshore Ghana. On 25 April 2012, the Company
announced that the well had intersected 502 ft of very good quality sandstone reservoirs, however
they were interpreted as water bearing. The well was drilled with the Marianas semi-submersible
drilling rig to a total depth of 14,928 ft in a water depth of 5,535 ft. Afren has a 35 per cent. carried
interest in the block. The well has provided important information with which to calibrate and
further enhance the Companys understanding of this under-explored block in what still remains a
high potential basin.
OPL 310 (Nigeria)
Afren has identified several prospects that lie in the same Senonian, Turonian and Albian sandstone
intervals that have yielded significant discoveries along with the West African Transform Margin in
Ghana and Cte dIvoire. The Company intends to drill an exploration well in 2012 and has plans in
place to acquire additional seismic data.
Block 1 (Nigeria So Tom & Prncipe JDZ)
The operator on Block 1, Total, has commenced a two well drilling campaign on the block with the
West Polaris drill ship.
La Noumbi (Congo Brazzaville)
Following interpretation of depth processed 2D data on the block, two prospects have been
identified and the operator has proposed drilling these in 2012.
Block 2B (South Africa)
The partners near-term work programme involves the acquisition of 600 km
2
of new 3D seismic data,
with reprocessing of existing 2D seismic and ongoing seismic inversion and regional biostratigraphy
studies ahead of expected exploration drilling in 2014.
OPL 907/917 (Nigeria)
The Company is continuing to evaluate the potential of the blocks in order to identify areas for future
seismic acquisition that could ultimately lead to future exploration drilling.
East Africa exploration
Block 1 (Kenya)
Acquisition of the planned 1,800 km of 2D seismic data is well underway, and the Partners are
targeting completion during 2012.
Block 10A (Kenya)
Having satisfied all seismic work commitments with the acquisition of 750 km of 2D seismic over the
block in 2011, the operator (Tullow Oil) will commence the drilling of one exploration well on the
Paipai prospect. The well is expected to spud in H2 2012.
Blocks L17/L18 (Kenya)
The Company has completed the acquisition of 1,207 km of additional 2D seismic data targeting the
deepwater portion of the block. The preliminary interpretation of the deep water 2D seismic
identifies four new highly encouraging prospects, in addition to the previously mapped prospects in
the shallow water. Importantly, the leads mapped on the new seismic represent a major new play
with lower risk and greater materiality than the shallow water play. Afren proposes to acquire 1,000
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km
2
3D seismic in H2 2012, in order to better understand the deep water prospectivity and identify a
well location. The primary objectives of the 3D deep water seismic survey is to optimally image the
deep water structures, define the reservoir distribution, potentially define fluid - or lithology - related
amplitude anomalies and reduce risk.
Tanga Block (Tanzania)
During Q4 2011, the partners acquired over 900 km of deepwater 2D seismic, the results of which
have now been interpreted and integrated with existing data. In 2012, the partners intend to acquire
3D seismic data over the deepwater areas of the block ahead of exploration drilling on the Orpheus
prospect from a shallow water location. The Company is in the process of securing a suitable jack up
rig.
Areas A,B,C (Seychelles)
Seismic data previously acquired by the partners revealed the presence of several large scale
structures in all three licence areas. A major new survey in Q4 2011 (3,733 km) included new basins
that could also contain significant Jurassic and Cretaceous sedimentary sections, and is currently
being processed.
Block 1101 (Madagascar)
The expanded work programme on Block 1101 consists of the drilling of one exploration well to a
minimum depth of 5,249 ft and the acquisition of additional 150 km of new 2D seismic and airborne
gravity and magnetics. The gravity and magnetic acquisition was completed in January 2012, seismic
acquisition is planned for H2 2012 and drilling is expected in 2013.
Blocks 7,8 (Ethiopia)
Work is ongoing to further interpret the prospectivity of Blocks 7 and 8 ahead of expected drilling in
H2 2012.





















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Forward 2012 exploration and appraisal drilling schedule

Country Asset
Effective Working
Interest
Gross Mean
prospect size
mmbbls
E&A wells
/ Seismic
Kurdistan region of Iraq Ain Sifni** 20% 917 3 wells
Nigeria - So Tom & Prncipe JDZ Block 1 JDZ** 4.41% 193 2 wells
Nigeria Ebok North Fault Block** 100%/50%* 35 1 well
Kenya Block 10A 20% 100 1 well
Tanzania Tanga Block 74% 200
1 well &
3D seismic
Nigeria OPL 310 70% 250 1 well
Nigeria OML 115 100%/50%* 60 1 well
Nigeria Okwok 70%/56%* 70 1 well
Ethiopia Blocks 7 & 8 30% TBC 1 well
Congo La Noumbi 14% TBC 2 wells
Kenya Blocks L17/L18 100% -
1,000 km
2

3D seismic
Madagascar Block 1101 90% -
150 km 2D
seismic
South Africa Block 2B 25% -
600 km
2

3D seismic
Kenya Block 1 50% -
1,800 km
2D seismic
* Working interest pre/post cost recovery;
** Well operating; Simrit-2 (Kurdistan region of Iraq) discovery announced 17 April 2012, Ebok NFB (offshore Nigeria)
discovery announced 14 May 2012

Financial position
Revenue in the period was US$386.7 million (Q1 2011: US$73.4 million), reflecting increased
production from the Ebok field. The company realised an average oil price of US$115.5/bbl (Q1 2011:
US$104.1/bbl) and an average gas price of US$6.0/mcf (Q1 2011: US$7.6/mcf).
Oil and gas inventory at Q1 2012 was US$36.3 million (Q1 2011: US$13.4 million), representing
approximately 460,000 barrels at Ebok and 270,000 barrels at Okoro net to Afren.
Hedges covering approximately 2.7 million barrels are in place for the period 1 April 2012 to 31
December 2012, following the purchase of additional deferred put options and spreads post year
end, providing minimum floor prices on these volumes of between approximately US$79-US$90/bbl.
Profit from continuing activities before tax was US$143.2 million (Q1 2011: US$2.0 million). This
reflects an increase in gross profit of US$171.6 million compared with the prior period, but also
includes the effect of losses on derivative financial instruments of US$30.2 million on the valuation of
mark to market oil price hedges (Q1 2011: US$9.6 million loss), finance costs of US$23.6 million
largely arising from interest charges on the Companys banking facilities and secured loan notes, and
a share of FHNs unrealised losses on oil price hedges (US$9.3 million net to Afren) arising from
Afrens shareholding in FHN offset by gains on the recognition of deferred tax assets relating to FHNs
historical losses.
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Normalised profit in the period was US$78.3 million (Q1 2011: US$9.9 million). Normalised profit
excludes the effect of unrealised hedge movements on Afren and on its share of the derivative
financial instrument losses in FHN, share related costs, and the cost of early debt repayment.
On 8 March 2012, the Company completed a second bond issue raising approximately US$300 million
before issue costs. The coupon on the bonds is 10.25% and they are listed on the Luxembourg Stock
Exchange. The proceeds from the issue of the new bond have been used in part to repay and cancel
the up to US$200 million VTB/BNPP facility and for general corporate purposes.
Capital expenditure on appraisal and exploration in the period was US$41.3 million (Q1 2011:
US$27.4 million), which included US$15.7 million in respect of the successful Okoro East exploration
well. Development expenditure was US$105.2 million (Q1 2011: US$105.0 million). Deferred
consideration of US$200 million in respect of the acquisition of Afrens interests in the Barda Rash
PSC was paid in the period.
Net debt, excluding finance leases, as at Q1 2012 was US$639.4 million (31 December 2011:
US$548.3 million) with cash at bank of US$399.0 million (Q1 2011: US$333.0 million).
Afren Net debt
Q1 2012
US$mm
Coupon Repayment due
2016 senior secured notes 500 11.5% 2016
2019 senior secured notes 300 10.25% 2019
Ebok RBL 218 LIBOR +4.0% to 5.25%
Up to US$450 million facility.
Repayments commence 2012
through 2015
Unsecured corporate facility 50 LIBOR +4.5%
23 month facility.
Repayment in July 2013
Borrowing costs net capitalised interest (30)
Total debt at end period 1,038
Cash at bank 399
Net debt at end period 639

Ends.

For further information contact:

Afren plc (+44 20 7451 9700) Pelham Bell Pottinger (+44 20 7337 1500)
Andrew Dymond
Investor Relations
James Henderson
Mark Antelme
Notes to Editors
Afren Plc
Afren is an independent upstream oil and gas exploration and production company listed on the main market of the
London Stock Exchange and constituent of the Financial Times Stock Exchange Index of the leading 250 UK listed
companies. Afren has a portfolio of 29 assets across 12 countries spanning the full cycle E&P value chain. Afren is
currently producing from its assets offshore Nigeria and Cte d'Ivoire and holds further interests in the Kurdistan region
of Iraq, Ghana, Nigeria, Cte d'Ivoire, Congo Brazzaville, the Joint Development Zone of Nigeria - So Tom & Prncipe,
Kenya, Ethiopia, Madagascar, Seychelles, Tanzania and South Africa. For more information please refer to
www.afren.com.
Afren plc Page 9


Condensed Group Income Statement
for the three months ended 31 March 2012 (unaudited)

Notes
3 months ended
31 March
2012
US$000s
3 months ended
31 March
2011
US$000s
Revenue 386,745 73,429
Cost of sales (183,225) (41,527)
Gross profit 203,520 31,902
Administrative expenses (6,817) (9,722)
Other operating income/(expenses)
impairment charge on exploration and evaluation assets - (17)
service fees receivable from associate company 1,250 2,500
derivative financial instruments (30,160) (9,592)
Operating profit 167,793 15,071
Investment revenue 41 10
Finance costs 2 (23,640) (10,109)
Other gains and (losses)
foreign currency gains/(losses) 244 (240)
fair value of financial liabilities and financial assets (65) (1,457)
Share of loss of an associate company (1,179) (1,238)
Profit from continuing operations before tax 143,194 2,037
Income tax expense 5 (90,030) (13,316)
Profit/(loss) from continuing operations after tax 53,164 (11,279)
Discontinued operations
Profit for the period from discontinued operations - 172
Profit/(loss) for the period 53,164 (11,107)
Earnings/(loss) per share from continuing activities
Basic 3 5.0c (1.2)c
Diluted 3 4.8c (1.2)c
Earnings/(loss) per share from all activities
Basic 3 5.0c (1.1)c
Diluted 3 4.8c (1.1)c

Comprehensive income/(loss) for each period was equivalent to profit/(loss) after tax for each period presented.
Afren plc Page 10


Condensed Group Balance Sheet
as at 31 March 2012 (unaudited)

Notes
31 March 2012
Unaudited
US$000s
31 December 2011
Audited
US$000s
Assets
Non-current assets
Intangible oil and gas assets 752,702 713,679
Property, plant and equipment
Oil and gas assets 1,659,610 1,668,619
Other 7,140 7,401
Prepayments 233 583
Derivative financial instruments 12,433 13,358
Investments in associates 20,574 21,753
2,452,692 2,425,393
Current assets
Inventories 62,586 67,119
Trade and other receivables 175,781 145,616
Derivative financial instruments 684
Cash and cash equivalents 399,025 291,693
637,392 505,112
Total assets 3,090,084 2,930,505
Liabilities
Current liabilities
Trade and other payables (341,142) (317,364)
Borrowings (180,807) (157,807)
Current tax liabilities (54,682) (39,572)
Deferred consideration and payables on acquisitions (216,720)
Obligations under finance lease (18,409) (18,135)
Derivative financial instruments (18,468) (10,280)
(613,508) (759,878)
Net current assets/(liabilities) 23,884 (254,766)
Non-current liabilities
Deferred tax liabilities (198,851) (124,497)
Provision for decommissioning (30,908) (31,627)
Borrowings 7 (857,643) (682,212)
Obligations under finance leases (112,666) (117,372)
Derivative financial instruments (11,920) (7,565)
(1,211,988) (963,273)
Total liabilities (1,825,496) (1,723,151)
Net assets 1,264,588 1,207,354
Equity
Share capital 18,680 18,673
Share premium 918,610 918,142
Other reserves 29,753 26,385
Merger reserve 179,359 179,359
Retained earnings 118,186 64,795
Total equity 1,264,588 1,207,354

Afren plc Page 11


Condensed Group Cash Flow Statement
for the three months ended 31 March 2012 (unaudited)

3 months ended
31 March 2012
US$000s
3 months ended
31 March 2011
US$000s
Operating profit for the period 167,793 15,071
Depreciation, depletion and amortization 90,956 20,761
Unrealised losses on derivative financial instruments 14,152 8,432
Impairment charge on exploration and evaluation assets - 17
Share based payments charge 4,234 3,652
Operating cashflows before movements in working capital 277,135 47,933
Cash provided by operating activities of discontinued operations 213
(Increase) in trade and other operating receivables (32,381) (86,696)
Increase in trade and other operating payables 48,212 24,557
Decrease in inventory (crude oil) 7,317 853
Foreign exchange adjustments (75) 332
Net cash generated by/(used in) operating activities 300,208 (12,808)

Purchases of property, plant and equipment
Oil and gas assets (105,198) (104,990)
Other (558) (2,045)
Deferred consideration paid (discounted) (190,290)
Exploration and evaluation expenditure (41,338) (27,352)
Cash received on disposal of equipments of discontinued activities 1,283
Increase in inventories - spare parts and materials (2,782) (7,987)
Investment revenue 41 10
Net cash used in investing activities (338,842) (142,364)

Issue of ordinary share capital 475 6,588
Net proceeds from senior secured loan notes 294,475 479,957
Net proceeds from bank borrowings 97,966 50,000
Repayment of borrowings and finance lease (204,432) (182,268)
Deferred consideration-unwinding of discount paid (9,710)
Interest and financing fees paid (33,039) (5,983)
Net cash provided by financing activities 145,735 348,294

Net increase in cash and cash equivalents 107,101 193,122
Cash and cash equivalents at beginning of the period 291,693 140,221
Effect of foreign exchange rate changes 231 (249)
Cash and cash equivalents at end of period 399,025 333,094

Afren plc Page 12


Condensed Group Statement of Changes in Equity
for the three months ended 31 March 2012 (unaudited)

Share capital
US$000s
Share
premium
account
US$000s
Other
reserves
US$000s
Merger
reserve
US$000s
Accumulated
losses and
retained
earnings
US$000s
Total
equity
US$000s
Group
At 1 January 2011 17,007 896,812 22,764 (77,868) 858,715
Issue of share capital 78 6,510 6,588
Share based payments for services 2,917 2,917
Other share based payments 16 16
Reserves transfer relating to loan notes (2,194) 2,194
Reserves transfer on exercise of options,
awards and LTIP





(266)


266


Exercise of warrants (27) 5,668 5,641
Net loss for the period (11,107) (11,107)
Balance at 31 March 2011 17,085 903,322 23,210 (80,847) 862,770

At 1 January 2012 18,673 918,142 26,385 179,359 64,795 1,207,354
Issue of share capital 7 468 475
Share based payments for services 3,463 3,463
Other share based payments 8 8
Reserves transfer on exercise of options,
awards and LTIP
(64) 64
Exercise of warrants (39) 163 124
Net profit for the period 53,164 53,164
Balance at 31 March 2012 18,680 918,610 29,753 179,359 118,186 1,264,588


Afren plc Page 13

1. Basis of accounting and presentation of financial information
The condensed Group interim financial statements comprised of Afren plc (Afren) and its
subsidiaries (together, the Group) have been prepared in accordance with International
Accounting Standard (IAS) 34, Interim Financial Reporting, as adopted by the International
Accounting Standards Board (IASB). Accordingly, certain information and footnote disclosure
normally included in annual financial statements prepared in accordance with International Financial
Reporting Standards (IFRS), as issued by the IASB, have been omitted or condensed as is normal
practice. The condensed Group interim financial statements for the three months ended 31 March
2012 have been prepared solely for the purposes of compliance with the terms of issue of the senior
secured loan notes. The condensed Group interim financial statements are unaudited, and do not
constitute statutory accounts as defined in sections 435(1) and (2) of the Companies Act 2006.
Statutory accounts for the year ended 31 December 2011 were published and copies of which have
been delivered to the Companies House. The report of the auditors on those accounts was
unqualified, did not include a reference to any matters to which the auditors drew attention by way
of emphasis without qualifying the report, and did not contain any statement under sections 498(2)
or (3) of the Companies Act 2006.
Changes in accounting policy
The same accounting policies, presentation and methods of computation have been followed in
these condensed Group interim financial statements as were applied in the preparation of the
Group's financial statements for the year ended 31 December 2011. These interim financial
statements should be read in conjunction with the Groups consolidated financial statements for the
year ended 31 December 2011.
Going concern
The directors are satisfied that the Group has sufficient resources to continue in operation for the
foreseeable future, a period of not less than 12 months from the date of this report. Accordingly,
they continue to adopt the going concern basis in preparing the condensed Group interim financial
statements.

2. Finance costs

2012
US$000's

2011
US$000's
Bank interest payable 5,527 2,467
Borrowing costs amortisation and facility fees 5,130 8,284
Interest on finance lease 2,234 -
Interest on loan notes 16,500 11,551
Corporate facility interest payable 625 -
Unwinding of discount on loan notes - 2,454
Unwinding of discount on decommissioning and deferred consideration 464 476
30,480 25,232
Less: capitalised interest (6,840) (15,123)
23,640 10,109








Afren plc Page 14

3. Earnings per share


Period ended 31 March

2012 2011
From continuing and discontinued operations
Basic 5.0c (1.1)c
Diluted 4.8c (1.1)c
From continuing operations
Basic 5.0c (1.2)c
Diluted 4.8c (1.2)c
The profit/(loss) and weighted average number of ordinary shares used in the calculation of the earnings/(loss) per share are as
follows:
Profit/(loss) for the period used in the calculation of the basic earnings/(loss) per share from continuing
and discontinued operations (US$000's)
53,164 (11,107)
Effect of dilutive potential ordinary shares - -
Profit/(loss) for the period used in the calculation of the diluted earnings/(loss) per share from continuing
and discontinued operations (US$000's)
53,164 (11,107)
Profit for the period from discontinued operations - 172
Profit/(loss) used in the calculation of the basic and diluted earnings/(loss) per share from continuing
activities (US$000's)

53,164

(11,279)
The weighted average number of ordinary shares for the purposes of diluted earnings/(loss) per share reconciles to the weighted
average number of ordinary shares used in the calculation of basic earnings/(loss) per share as follows:
Weighted average number of ordinary shares used in the calculation of basic earnings/(loss)
per share

Effect of dilutive potential ordinary shares: 1,073,621,187 973,263,335
Share based payments schemes 42,114,129 -
Warrants 218,974 -
Weighted average number of ordinary shares used in the calculation of diluted earnings/(loss)
per share

1,115,954,290

973,263,335
-
There were no anti-dilutive potential ordinary shares for the period to 31 March 2012. For the period ended 31 March 2011 all
potential ordinary shares were anti-dilutive because of the loss in the period.






















Afren plc Page 15

4. Reconciliation of profit/(loss) after tax to normalised profit after tax

2012
US$000's

2011
US$000's
Profit/(loss) after tax 53,164 (11,279)
Unrealised losses on derivative financial instruments* 14,152 8,432
Share based payment charge 4,234 3,652
Foreign exchange (losses)/gains (244) 240
Fair value financial liabilities 65 1,457
Finance costs on settlement of borrowings 1,824 7,431
Share of after tax loss of associates derivative financial instruments losses 5,096 -
Normalised profit after tax 78,291 9,933
* Excludes realised losses on derivative financial instruments of US$ 16.0 million (31 March 2011: US$ 1.2 million).

Normalised profit after tax is a non-IFRS measure of financial performance of the Group, which in
managements view more accurately reflects the Groups underlying financial performance. This may
not be comparable to similarly titled measures reported by other companies.
5. Taxation

2012
US$000's

2011
US$000's
UK corporation tax - -
Overseas corporation tax 15,676 16,743
15,676 16,743
Deferred tax 74,354 (3,427)
90,030 13,316

The effective tax rate reflects having largely utilised the available tax losses and the commencing of
production at the Ebok field during 2011 and throughout the 3 months ended 31 March 2012.













Afren plc Page 16

6. Operating Segments
For management purposes, the Group currently operates in five geographical markets which form
the basis of the information evaluated by the Groups chief operating decision maker: Nigeria, Cote
dIvoire, Other West Africa, Eastern Africa and Middle East and North Africa. Unallocated operating
expenses, assets and liabilities relate to the general management, financing and administration of the
Group.

Nigeria
US$000s
Cte
dIvoire
US$000s
Other
West
Africa
US$000s
Eastern
Africa
US$000s
Middle East
and North
Africa
US$000s
Unallocated
US$000s
Consolidated
US$000s
Three months to March 2012
Sales revenue by origin 381,142 5,603 386,745

Operating gain/(loss) before derivative financial
instruments
205,331 (1,155) (6) (154) (3) (6,060) 197,953
Derivative financial instruments losses (30,160) (30,160)
Segment result 175,171 (1,155) (6) (154) (3) (6,060) 167,793
Investment revenue 41
Finance costs (23,640)
Other gains and losses foreign currency gains 244
Other gains and losses fair value of financial
assets and liabilities
(65)
Share of loss of an associate (1,179)
Profit from continuing operations before tax 143,194
Income tax expense (90,030)
Profit from continuing operations after tax 53,164
Loss from discontinued operations -
Profit for the period 53,164

Segment assets non-current 1,389,208 132,018 75,422 226,492 612,091 17,461 2,452,692
Segment assets current 497,629 23,899 4,279 3,145 1,505 106,935 637,392
Segment liabilities (883,151) (39,322) (7,442) (46,614) (2,204) (846,763) (1,825,496)
Capital additions oil and gas assets 63,969 18,369 82,338
Capital additions exploration and evaluation 20,793 112 4,668 8,554 4,871 25 39,023
Capital additions other 316 1 24 217 558
Capital disposal other (38) (38)
Depletion, depreciation and amortisation (85,306) (5,221) (2) (427) (90,956)



Afren plc Page 17

6. Operating Segments continued




Nigeria
US$000s
Cte
dIvoire
US$000s
Other
West
Africa
US$000s
Eastern
Africa
US$000s
Middle
East and
North
Africa
US$000s
Unallocated
US$000s
Consolidated
US$000s
Year to December 2011
Sales revenue by origin 546,830 49,833 596,663

Operating gain/(loss) before derivative financial
instruments
279,312 20,825 (287) (1,158) (26) (17,990) 280,676
Derivative financial instruments losses (11,253) (1,272) (12,525)
Segment result 268,059 19,553 (287) (1,158) (26) (17,990) 268,151
Investment revenue 560
Finance costs (57,110)
Other gains and losses foreign currency gains 1,190
Other gains and losses dilution gain on
investment in associate company
14,683
Other gains and losses gain on derivative
financial instruments on shares of associate
company
7,964
Other gains and losses fair value of financial
assets and liabilities
(70)
Share of loss of an associate (14,003)
Profit from continuing operations
before tax
221,365
Income tax expense (96,003)
Profit from continuing operations
after tax
125,362
Loss from discontinued operations (3,654)
Profit for the period 121,708

Segment assets non-current 1,390,155 139,110 71,461 216,577 588,827 19,263 2,425,393
Segment assets current 364,871 60,356 4,420 1,756 20,155 53,554 505,112
Segment liabilities (726,401) (49,617) (6,955) (43,582) (312,794) (583,802) (1,723,151)
Capital additions oil and gas assets 660,628 270 4,945 665,843
Capital additions exploration and evaluation* 72,674 939 10,059 18,105 583,880 750 686,407
Capital additions other 1,657 268 2 2,570 4,497
Capital disposal other (2,122) (2,122)
Depletion, depreciation and amortisation (143,952) (14,331) (1) (1,845) (160,129)

* During the year ended 31 December 2011, exploration and evaluation additions of US$415.4 million in respect of the Barda Rash licence were
transferred to oil and gas assets in the Middle East and North Africa segment.













Afren plc Page 18

6. Operating Segments continued

Nigeria
US$000s
Cte dIvoire
US$000s
Other West
Africa
US$000s
Eastern
Africa
US$000s
Unallocated
US$000s

Consolidated
US$000s
Three months to March 2011

Sales revenue by origin 66,918 6,511 73,429
Operating profit/(loss) before derivative
financial instruments 33,875 (535) (17) (212) (10,948)

22,163
Derivative financial instruments (losses) (8,321) (1,271)

(9,592)
Segment result 25,554 (1,806) (17) (212) (10,948) 12,571
Investment revenue 10
Finance costs (10,109)
Other gains and losses foreign
currency gains
(240)


Other gains and losses fair value of financial
assets & liabilities
(1,457)
Share of result of associate 1,262
Profit from continuing operations before tax 2,037
Income tax expense (13,316)
Profit from continuing operations after tax (11,279)
Loss from discontinued operations 172
Profit from continuing operations after tax (11,107)


Segment assets non current 917,257 149,959 75,017 196,387 5,080 1,343,700
Segment assets current 181,070 22,641 7,372 166 295,269 506,518
Assets held for sale 2,812 2,812
Segment liabilities (386,614) (40,193) (6,675) (41,266) (515,512) (990,260)
Capital additions oil and gas assets 125,138 125,138
Capital additions exploration and
evaluation 2,804 304 6,571 3,900
13,579
Capital additions other 288 2 1,763 2,053
Depletion, depreciation and
amortisation
(16,741) (3,615) (1) (404) (20,761)
Exploration costs write-off (17)
(17)

7. Senior secured loan notes
On 8 March 2012, Afren announced the closing of its offering of US$300 million of its 10.25% senior
secured notes due 2019 (the Notes).

The Notes are guaranteed on a senior basis by certain subsidiaries of Afren plc and on a subordinate
basis by Afren Resources Limited. Interest will be paid semi-annually. The interest charged for the
period is calculated by applying the 10.25% to the total proceeds. Interest amounting to US$2.0
million has been charged to the income statement for the period to 31 March 2012. Total expenses
of the offering incurred amounted to US$7.9 million which are being amortised over the life the
Notes. Part of the proceeds of the offering were used to settle borrowings amounting to US$200.0
million and accrued interest of US$0.3 million.

8. Contingent liabilities
There has been no change to the contingencies reported in the annual report for the year ended 31
December 2011.




Afren plc Page 19

9. Subsequent events
On 25 April 2012, Afren announced that the Nunya-1x exploration well in the Keta block offshore
Ghana has encountered thick and high quality water bearing reservoirs. An assessment will be
carried out to determine whether this will lead to an impairment of the well costs incurred.

10. Related parties
The following table provides the total amount of transactions which have been entered into with
related parties during the three months ended 31 March 2012 and 2011:

Trading transactions


Sale of goods/services Purchase of goods/services
Amounts owed
to/(by) related parties

Three months
ended
31 March 2012
US$000s
Three months
ended
31 March 2011
US$000s
Three months
ended
31 March 2012
US$000s
Three months
ended
31 March 2011
US$000s
As at 31 March
2012
US$000s
As at 31
March 2011
US$000s
St John Advisors Ltd - - 70 1,435 - (28)
STJ Advisors LLP - - 94 - - -
First Hydrocarbon Nigeria Ltd 1,250 2,500 - - (4,018) -

St John Advisors Ltd and STJ Advisors LLP are the contractor companies for the consulting services of
John St. John, a Non-Executive Director of Afren, for which they receive fees, including contingent
completion and success fees, from the Company. Both St John Advisors and STJ Advisors LLP also
receive monthly retainers of 15,000 and 30,000 under contracts which started from 27 June 2008
and 15 December 2011 respectively. The contracts have a twelve month period which automatically
continues unless terminated by either party.
In addition, a separate contract was entered into with STJ Advisors LLP in 2010 for consulting services
provided in relation to the issue of the senior secured loan notes which completed on 27 January
2011. First Hydrocarbon Nigeria Limited (FHN) is an associate of Afren plc.