UK 18:09 Saturday, 7 November 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Just when you think that Afren (AFR) can’t get any worse it seems to have the ability to release another piece of news that trashes the share price!
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Comments
DUCK AND DIVE
This company allegedly had a cash balance of $235 million just 4 weeks ago but now it seems it doesn’t have two sticks to rub together.
I presume the Sheriff will be sticking his spurs in.
Gary Newman
Duck and Dive,
I think it is more a problem that money is already committed elsewhere – additional production facilities about to come online at Ebok and Okwok, although most CAPEX for those was already paid a while back.
It certainly feels like the board (what is left of them!) has screwed long term investors and recent RNSs have been terrible from them (not in terms of the actual news, which aaas bad anyway, but the doubt they have left the market in afterwards). This mornings news for instance should have been put out last week in response to the Sky reports rather than the ‘wishy-washy’ response that lacked any detail then – I’m sure not a great deal has changed in a few days in terms of the situation reported this morning.
Took a gamble here myself at 21p odd (with a suitably small amount that i was prepared to lose – and now may do!) – but i knew the risks as did anyone else buying in the last few weeks for a ‘punt’ on a recovery, and it is those who’d held longterm who’ve really been screwed (sudden revelations about 2P reserves at Badr Rash for instance, and previous director dodgy dealings).
Judging by recent updates even from the credit ratings agencies and brokers, it seems most were unaware of just how bad things could be, even after the revelations about the $50 million amortisation payment (Fitch still issued a B- post that news).
Not one I would average down on, but will just hold and see how it plays out from here if there is restructuring and a rights issue like we saw with POG, for instance.
The assets actually look attractive and a lot has been pumped into bringing them to production, which with the new facilities should exceed 40kbopd.
Paul Curtis
Interesting situation since debt is $860m bonds and $300m banks. With shareholder funds of $2bn at Interims (say $1.5bn post write downs incl Kurdistan) and > 30mbpd of reasonably lie cost production things dont look too desperate for bondholders yet bonds trading at circa 35c on $1 par. A debt for equity swap would dramatically improve ability to re-finance cash flow shortfall. Especially when part of the > current market cap requirement presumably the 2016 bond repayment of $250 in Feb 2016
So what am I missing?