Afren (#AFR) - admits has received early stage bid from SEPLAT
- 2014-12-22 02:12:52
UK 08:05 Wednesday, 23 September 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
With the recent fall in oil prices many companies in the oil and gas sector look ‘cheap’, but Afren (AFR) has to be one of the best value buys around.
News broke last night that Afren (AFR) sacked its CEO, Osman Shahenshah, and COO, Shahid Ullah, after the company’s independent review found both directors had received “unauthorized payments”. As a constituent of the FTSE 250, Afren has shown it is possible for non-executive directors to act swiftly and assuredly in dealing with wrongdoing by executive board members. I can think of the odd board or twelve on AIM, which would do well to take note, not least because Mr Shahenshah was one of the co-founders of Afren. Now that he is gone and the company has dealt decisively with any controversy, can Afren’s share price regain lost ground?
I am currently working on exposing two well-known figures in mining who took far more than backhanders from two separate AIM listed companies. I know what they did I am just awaiting the documents to prove how they stole millions from shareholders. I will get them but one objection I get is “if we help you expose these crooks it will make ALL resource stocks look like they are run by crooks.” Au contraire and that brings me to Afren (AFR)
Afren (AFR) has taken a massive hit following the suspension of two of its directors, and it could well have further to drop. Last week’s news that the CEO and Chief Operating Officer had received unauthorised payments benefitting them personally has already knocked more than £500 million off the market cap of this oil and gas producer.
On balance I’d buy Afren (AFR) today at 112p with its shares having plunged 24% on the suspension of its CEO Osman Shahenshah and COO Shahid Ullah. I am no expert on the fundamentals so this is not a tip but it strikes me that the market has over-reacted to the suspension of these two chaps.
Shares in Afren (AFR) have, for much of the past year and a half, remained within a rather spiky 120p to 160p trading range. This has been characterised by turn on a dime rebounds and failures such as those seen to the downside last month and to the upside to start October. But now?
A couple of months ago when Afren was trading near 150p and there was bid speculation in the air, I called the stock higher on technicals.
Results last month from mid cap oil and gas stock Afren (AFR) produced no shocks but this is not a sector that is flying.
Earlier this week Afren plc (AFR), a FTSE-250 oil and gas exploration and production company which despite its size remains a darling of the Bulletin Boards, updated investors on its performance in 2012 and its outlook. This review helped the shares up to 152.5p although they have subsequently slipped back to 147p which capitalises the company at £1.595 billion. Chartists will note that 152p proved a resistance level ten months ago and failure to breach that level ( which had been support a ten months prior to that) saw the shares fall back to 100p. But I’d rather burn my West Ham season tickets and start supporting Spurs than become a Technical analyst and so I review the fundamental case.
