Afren plc | 2011 Half-yearly Results 1

Strong production growth outlook; active

E&A drilling campaign; significant low cost
barrels acquired
Afren plc (Afren or the Company) (LSE: AFR), the independent oil and gas exploration and production Group, announces its Half-
yearly Results for the six months ended 30 June 2011.

2011 Half-yearly Results Summary
The financial results for the first half of the year reflect a lower net production rate compared to the same period in 2010, due
primarily to cost recovery being achieved at the Okoro field and longer than expected periods of facilities related down time at the
Ebok field. This has been partially offset by significantly higher price realisations and lower cost of sales.

Financial highlights



1H 2011 1H 2010 Change
Turnover (US$mm) 161.0 214.8 (25.0)%
Gross Profit (US$mm) 79.2 97.0 (18.4)%
Profit/(Loss) Before Tax (US$mm) 43.7 75.4 (42.0)%
Normalised Profit/(Loss) After Tax (US$mm)* 26.1 54.5 (52.1)%
Net W.I. production (boepd)** 13,000 20,400 (36.3)%
Realised oil price (US$/bbl) 110.4 77.8 41.9%
Realised gas price (US$/mcf) 8.0 5.2 53.8%
*See note 3 of the interim financial statements
**Working interest, including natural gas liquids


Key highlights
Company well positioned with major asset base in high potential basins

Reservoir performance at Ebok at upper end of expectations

Okoro reservoir performance continues at upper end of expectations; infill wells onstream and elective
de-bottlenecking of FPSO undertaken to increase gross liquids capacity

Full year net working interest production guidance 25,000 boepd, with an exit rate of 50,000 boepd

Forward exploration programme targeting 930 mmboe of net prospective resources

Low cost reserves acquisition of two contiguous PSCs (post period end) Barda Rash (60 per cent. operated) and
Ain Sifni (20 per cent. non-operated) in the Kurdistan region of Iraq (expected to complete in September)
890 mmbbls net working interest 2C resources
Low acquisition cost of US$0.66 per 2C bbl
Five year line of sight on 75,000 bopd net from Barda Rash PSC alone
Substantial low risk exploration upside

Strong financial position; cash at bank US$320.9 million; net debt US$343.0 million gearing 37.5%
Afren plc | 2011 Half-yearly Results 2

Osman Shahenshah, Chief Executive of Afren plc, commented:
Afren continues to make good operational progress, with reservoir performance and
drilling results at our Ebok and Okoro fields at the upper end of expectations. Whilst
first half production volumes were impacted by periods of non-reservoir related
facilities down time, we are now ramping up production towards our targeted 50,000
boepd exit rate. We are delighted to have acquired, post the period end, a high
quality portfolio of assets in, and gain entry into the Kurdistan region of Iraq. The
acquisition is consistent with our strategy of acquiring low cost barrels, increases our
2P and 2C recoverable reserves and resources base by over 700 per cent. at a cost
of under US$1 per barrel and means that Afren is now strategically positioned in two
of the worlds most prolific oil producing countries in Nigeria and Iraq. Our planned
exploration campaign is due to commence shortly with the drilling of key wells in
each of our core regions that, if successful, could materially increase the Companys
reserves base. Financially we are in a strong position with low gearing and
substantial resources available to execute our planned work programme and pursue
further inorganic growth opportunities that are available to us.

26 August 2011



Analyst Presentation
There will be a presentation to analysts at 09:00 BST in The Auditorium, Bank of America Merrill Lynch,
2 King Edward Street, London EC1A 1HQ.

The presentation will also be broadcast live at www.afren.com where the accompanying presentation will be
available, and on playback from 12:00 BST.



Operations review

Afren plc | 2011 Half-yearly Results 3
The first half of 2011 was another period of significant progress across all areas of Afrens activities. Operationally, reservoir
performance at the Okoro and Ebok fields has been at the upper end or ahead of expectations. Net production during the period
averaged 13,000 boepd, reflecting the delayed start up of the Ebok field and longer than expected periods of facilities downt ime at
the field. The Company expects production over the second half of the year to increase sharply now that full facilities uptime has
been restored and that net working interest production over the full year will average approximately 25,000 boepd, with an exit rate
of approximately 50,000 boepd net to Afren. Financially, the Company has maintained a conservative capital structure. During the
period, Afren became the first UK listed independent E&P company to access the bond market with a US$500 million high yield
offering. Afren has continued to expand its portfolio and selectively add high potential opportunities with the acquisition of the Tanga
Block in Tanzania and Block 2B in South Africa. Post period end, Afren announced the acquisition of a 60 per cent. interest in the
Barda Rash PSC and 20 per cent. interest in the Ain Sifni PSC, in the Kurdistan region of Iraq. The acquisition is consistent with
Afrens strategy of acquiring low cost barrels in areas with strategic advantage and increases the Companys current 2P and 2C
recoverable reserves and resources base by over 700 per cent. at a cost of under US$1.0/bbl.

Sub Saharan Africa
Production and development operations update

Nigeria

Ebok
Production experience to date from development Phase 1 has confirmed that reservoir properties and productivity of the D2
reservoir wells are at the upper end of expectations. In December 2010, three out of the five D2 reservoir production wells were
tested at an aggregate rate of 12,500 bopd. Following the full commissioning and production start up of Phase 1, production
increased to a rate of 17,000 bopd from all five wells.

Post period end, the Company has also completed and brought onstream a production well targeting the D1 reservoir, also in the
Central Fault Block area. The well has produced significantly ahead of expectations, delivering a rate of 4,000 bopd with a down-
hole pump installed. As a consequence, the partners have elected to prioritise additional development of the D1 reservoir at this
location.

Production during the period was, however, impacted by non-reservoir related periods of facilities down time. This was due to a
longer than anticipated commissioning period for the Mobile Offshore Production Unit (MOPU), necessary suspension of producti on
during simultaneous drilling and production operations, fine tuning of the process facilities and commissioning of the gas turbines
and related systems to deliver the water injection capability. As a consequence, production at the field during the first half of the
year was 3,300 bopd. This work has now been completed, and production from Phase 1 is being ramped up to a rate of 15,000
bopd to 17,000 bopd.

Development drilling at Phase 2, targeting the West Fault Block area of the field, is underway with the GSF High Island Vll drilling
rig, and comprises of five horizontal production wells and up to two water injection wells. Drilling results to date have been better
than pre drill expectations, giving longer oil bearing sections and better reservoir properties in the LD-1E reservoir in particular.
Three wells will be bought onstream shortly, with Phase 2 expected to add 20,000 bopd to gross field output once all five wells are
onstream.

Ongoing work programme
Post completion of Phase 2, the GSF High Island Vll rig will proceed with the drilling of additional production well s targeting the
South West area of the field. These will be drilled from its current location at the West Fault Block wellhead platform. The Adriatic
lX rig is next scheduled to commence the drilling of three D1 production wells from the Phase 1 wellhead platform location, followed
by an exploration well to test the 35 million barrel resource Ebok North prospect.

Okoro
During the period the Company and its partner Amni successfully completed a two well infill drilling campaign, bringing the Okoro-11
and Okoro-12 horizontal production wells onstream. The resultant production impact was to increase gross output at the field to
21,000 bopd. Elective de-bottlenecking work at the Floating Production Storage Offloading vessel (FPSO) has been undertaken to
increase gross liquids handling capacity from the initial 27,000 bpd. The increased total fluid handling capacity will allow for oil
production to be maintained at higher levels for longer. As a result of this work and the necessary period of production suspension,
gross output at the field over the first half of the year averaged 14,600 bopd. Gross production at the field is currently between

Operations review

Afren plc | 2011 Half-yearly Results 4
18,000 to 19,000 bopd. Ongoing studies of the field and immediate surrounding area have identified additional future drilling targets.
In particular, the Okoro East prospect has similar sub surface characteristics to the main Okoro field, and is estimated to have
similar resource potential. The partners are exploring options that could potentially result in the accelerated drilling of this attractive
near field target.

OML 26 First Hydrocarbon Nigeria
Post completion of the acquisition of a 45 per cent. interest in OML 26, Afren and First Hydrocarbon Nigeria (FHN) will seek to
implement together with NNPC a three phase development plan for the Ogini and Isoko fields, with the goal of ultimately increasing
gross production to a rate of 50,000 bopd. Under the proposed development plan, initial work will be focused on certain qui ck-win
opportunities including low-cost workovers of existing wells and re-activation of gas lift. Once implemented, these measures are
expected to increase gross field production by around 50 per cent. over and above current levels (approximately 5,000 to 6,000
bopd). The partners will then seek to mobilise a land rig to the field location and commence the drilling of an initial six horizontal
production wells.

Afren and FHN will continue to seek out further opportunities to expand the partnership through the acquisition of other substantial
oil and gas assets in Nigeria including those that are currently held between the Nigerian government and major international oil
companies, assets that could be diversified in connection with indigenous licensing rounds and assets of other Nigeri an companies
if appropriate.

Cte dIvoire

CI-11 and Lion gas Plant
Average production during the period at CI-11 was 16.3 mmcfd and 900 bopd, with 600 boepd of NGL production at the Lion Gas
Plant. Production levels were below expectation during the period due to the impact of political and social unrest delaying the import
of necessary equipment and resources required to conduct routine maintenance of the compressor unit during the first quarter of
2011.

Exploration and appraisal operations update

Nigeria

Okwok
Having established the Okwok field as a future commercial development, with NSAI ascribing 51.8 mmbbls of gross recoverable
resources following completion of the Okwok-9 appraisal well in November 2010, an extensive multi component Ocean Bottom
Cable (OBC) 3D seismic survey is now underway across the broader Okwok area that will provide important additional data to assist
with further appraisal and development planning. The Company expects seismic acquisition to conclude in September, and
following a period of interpretation and integration with existing data intends to spud an appraisal well in 1H 2012 with formal
submission of a Field Development Plan (FDP) anticipated in mid 2012. Given the scale of recoverable resources already proved, it
is considered most likely that Okwok will require a stand-alone development solution, but potentially sharing existing storage and
offtake facilities that have been installed at the Ebok field.

OML 115
Following completion and interpretation of the seismic programme currently underway across the Ebok/Okwok/OML 115 area, an
exploration well is now planned on OML 115 with expected spudding in mid 2012. The Ufon prospect is a 60 mmbbls target that is
interpreted to have oil prospectivity in the same D Series reservoirs that have been proven to be oil bearing at the nearby Ebok and
Okwok fields.

OPL 310
OPL 310 extends from the shallow water continental shelf to deep water offshore south west Nigeria, and represents a high potential
exploration opportunity in an under explored basin with a proven working hydrocarbon system. Afren has identified several
prospects that lie in the same Cenonian, Turonian and Albian sandstone intervals that have yielded significant discoveries al ong
with West African Transform Margin in Ghana and Cte dIvoire. The Company has a formal farm down process underway to attract
an industry partner to participate in future exploration of this high potential block. Plans are also in place to acquire additional
seismic on the block.



Operations review

Afren plc | 2011 Half-yearly Results 5

OPL 907/917
OPL 907 and 917 contain potentially attractive Cretaceous opportunities. The main hydrocarbon plays consist of late Cretaceous
deltaic to shallow marine clastics in fault related traps. Having acquired the original seismic tapes and reprocessed the data, Afren
continues to evaluate the potential of the blocks in order to identify areas for future seismic acquisition that could ultimately lead to
future exploration drilling.

Cte dIvoire

CI-01
The block has a proven petroleum system in multiple Cretaceous reservoirs. Oil and gas has been found in the Ibex and Kudu
fields, while only gas has been found in the Eland field. A full technical evaluation of the Kudu field has now been complet ed,
following on from previous work undertaken at the Ibex field. Afren and its partners on the block intend to acquire new block wide
3D seismic in order to provide a greatly expanded contiguous data set with a view to ultimately defining optimal appraisal dr illing
locations for the existing discoveries on the acreage.

Ghana

Keta Block
In March 2011, Afren announced the farm down of a 35 per cent. interest in the Keta block and transfer of operatorship to ENI (Afren
retains a 35 per cent. interest). All approvals for the assignment of this interest to ENI have been received from the Government of
Ghana. Under the terms of the farm down Afren will receive a carry through the drilling of one exploration well, back costs and carry
through future seismic acquisition and a milestone bonus payable upon the achievement of first oil on the block. The partners plan
to drill an exploration well targeting the 325 mmbbls Cuda prospect this year. The well was provisionally scheduled, at the time of
farm down, to spud during the third quarter with the Marianas semi-submersible drilling unit. However the rig was damaged whilst
under mobilisation in July, which is likely to have an impact on the expected spud date, presently anticipated to occur by year end.
In its most recent independent assessment NSAI more than doubled its view of gross unrisked prospective resources on the block to
1,412 mmbbls.

Nigeria So Tom & Prncipe JDZ
The new operator on Block 1, Total, is seeking to reprocess existing seismic data and has proposed the drilling of one apprai sal well
on the Obo discovery in 2011 and one exploration well in 2012. Afren has a 4.41 per cent. interest. The first well is expected to
spud in the fourth quarter of 2011 with the Pacific Scirocco drilling rig.

Congo Brazzaville
The La Noumbi permit is located onshore Congo Brazzaville, to the North and on trend with the large producing MBoundi oil field.
The partners are currently defining a forward work programme have recently entered the next exploration phase on the block.

South Africa

Block 2B
During the period, Afren completed the acquisition of Block 2B, located in offshore shallow water in the Orange River Basin, lying
between the Ibhubesi gas field and the Namaqualand coast. The block covers an area of approximately 5,000 km
2
with water
depths ranging from shore line to 250 metres. 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 2012.


Operations review

Afren plc | 2011 Half-yearly Results 6
East Africa
Exploration and appraisal operations update

Kenya

Block L17/18
Following completion of a 400 km 2D seismic acquisition programme in 2010, a number of newly defined prospects and leads have
been identified on the acreage. The Company intends to acquire additional 2D seismic in the fourth quarter of 2011.

Block 10A
The Tullow Oil operated joint venture acquired 750 km of 2D seismic over the block during the first quarter of 2011 to supplement
the existing 2D coverage of 2,631 km. Integration of the new data and interpretation is underway. This work satisfies all seismi c
obligations for the current exploration period. The operator has proposed the drilling of one exploration well during the fourth quarter
of 2011/first quarter of 2012 depending on the timing of rig arrival.

Block 1
The partners on Block 1 plan to acquire 1,200 km of 2D seismic data commencing in the third quarter of 2011. Airborne gravity and
magnetic data was acquired in the first half of 2011, the results of which are very encouraging and are being used to target the
planned 1,200 km seismic. Several major structures have already been mapped on the block that currently has 850 km of 2D
seismic coverage.

Tanzania

Tanga Block
On 24 March 2011, Afren announced the acquisition of a 74 per cent. operated working interest in the Tanga Block, located off shore
Tanzania. The block is well located in that it lies across a deep basin with a very thick sedimentary section that has the potential of
hosting several source rock intervals and multiple reservoir/seal pairings. The block is covered by 200 km of legacy 2D seismic
data, and 1,200 km of good quality new 2D seismic data. Immediately post completion, Afren undertook and completed a 751 km
shallow water 2D seismic programme. Early results are encouraging, and provide excellent definition of several large scale
prospects and leads that have been identified to date, together with new zones of additional potential. Additional deep water
seismic will be acquired on the block during 2H 2011.

Ethiopia

Blocks 2,6,7,8
During 2010 a 2D seismic acquisition programme was completed across the onshore Blocks 2, 6, 7 and 8. Within the current
exploration period, the partners have obtained 15,000 km of airborne gravity and magnetic data, 551 km of 2D seismic data and are
required to drill one exploration well. The partners have opted to focus future exploration efforts on Blocks 7 and 8 that hold the El-
Kuran oil discovery, and have indicated to the Ethiopian authorities the intention to relinquish Blocks 2 and 6. Work is ongoing to
further interpret the prospectivity of Blocks 7 and 8 ahead of expected drilling in 2012.

Madagascar

Block 1101
In July the Company announced that Government approvals had been received for Afren to assume operatorship and increase its
interest in Block 1101 to 90 per cent. and that a revised work programme had also been agreed with OMNIS, the state oil and gas
agency. Under the agreed terms of reassignment, Afren has increased its overall participation in Block 1101 to a 90 per cent.
operated interest through the reassignment of a 50 per cent. interest previously held by Candax Energy, who remain partners on the
block with a 10 per cent. interest. The expanded work programme combines the first two exploration phases on the block and
requires the drilling of one exploration well to a minimum depth of 1,600 metres. The partners have also agreed to acquire an
additional 150 km of new 2D seismic and airborne gravity and magnetics. Under the revised ownership structure and work
programme, it is expected that drilling will now commence in late 2012.



Operations review

Afren plc | 2011 Half-yearly Results 7
Seychelles

Blocks A,B,C
Seismic data acquired to date by the partners has revealed the presence of several large scale structures in all three license areas,
in addition to new basins that could also contain significant Jurassic and Cretaceous sedimentary sections. The partners have a
tender process underway as a precursor to acquiring new seismic data during the second half of 2011 over Blocks A,B and C,
ahead of expected exploration drilling.

Kurdistan region of Iraq

Strategic entry into a prolific oil and gas producing region (post period end)

On 27 July 2011 (post period end), Afren announced the acquisition of a 60 per cent. operated interest in the Barda Rash PSC and
20 per cent. non-operated interest in the Ain Sifni PSC, both of which are located in the Kurdistan region of Iraq, from Komet Group
and the Kurdistan Regional Government respectively. The acquisition represents a highly complementary extension of the
Companys existing portfolio, and offers a combination of near term development upside and substantial low risk exploration
potential. Independently certified net 2C resources at Barda Rash and Ain Sifni are 890 mmbbls with total net unrisked resources
estimated to be 1,074 mmbbls.

The total amount payable for the acquisition is US$588.25 million (US$0.66 per 2C barrel) inclusive of approximately US$81 mi llion
back costs and US$14 million 2011 capex related to Ain Sifni, of which US$388.25 million will be due on closing and US$200
million six months from closing. On 28 July, Afren completed the placing of 83,679,544 new ordinary shares at a price of 135 pence
per share, raising a total of US$184.5 million before fees, the proceeds of which will be used to part-fund the acquisition
consideration. The Company has also agreed terms and conditions and mandated BNP Paribas and VTB Capital to arrange an up
to US$200 million corporate credit facility.

Barda Rash PSC
The Barda Rash PSC is located 55 km North West of Erbil, and holds the 14,174 mmbbls STOIIP/1,470 mmbbls gross recoverable
resources Barda Rash oil field (split 506 mmbbls light oil and 964 mmbbls heavy oil). The field is defined as an elongated anticline
with surface expression of 20 km length and up to 7 km width. The reservoirs are principally fractured carbonates of various
depositional settings. Three wells have been drilled on the field to date, BR-1, BR-2 and BR-3, all of which have encountered oil.
The main reservoir targets are the Cretaceous, Jurassic and Triassic sequences. The field is defined by 330 km of good quali ty 2D
seismic data. The Company plans to undertake a phased development of the field with production start-up scheduled for early
2012. Initial work will focus on developing 506 mmbbls recoverable light oil resource that is anticipated to deliver gross production
of 125,000 bopd by 2017 (giving five year line of sight on 75,000 bopd net to Afren). Production will initially be trucked to nearby
export pipeline entry points, and ultimately exported via the planned Taq Taq to Ceyhan pipeline. Ongoing development would then
focus on the development and production of 964 mmbbls of recoverable heavier oil resource, offering further large scale production
growth potential over the medium to longer term. In order to facilitate the execution of the work programme, the Company has put in
place a team of regional experts with an extensive experience of working on fracture carbonate reservoirs characteristic of those
present in the Kurdistan region of Iraq.

Ain Sifni PSC
The Ain Sifni PSC is located 70 km North West of Erbil, and is operated by Hunt Oil Middle East. Drilled on the crest of the Jebel
Simrit anticline in 2010, the JS-1 discovery well logged continuous oil pay from 1,110 m to 3,070 m in Cretaceous and Jurassic
reservoirs. Triassic reservoir targets were not penetrated by the well and no oil water contact was established. Independently
certified gross 2C STOIIP and recoverable resources associated with the well are 391 mmbbls and 42 mmbbls respectively. The
PSC has substantial upside over and above the volumes of 2C resources established to date, with prospective resources
independently estimated at 7,493 mmbbls STOIIP and 917 mmbbls recoverable on a gross un-risked basis. This is primarily
attributed to as yet un-drilled parts of the Jebel Simrit structure and the Maqlub prospect that is interpreted to be the Westerly
extension of the proven Barda Rash anticline. An exploration well, Jebel Simrit-2, is planned to spud early fourth quarter 2011 to
appraise and production test the western extent of the Jebel Simrit structure. Exploration wells are also scheduled to test the low
risk Maqlub, Betnaar and East Simrit structures.

Finance review

Afren plc | 2011 Half-yearly Results 8
1. Result for the period
Afrens results for the first six months of 2011 reflect the reduction during 2010 of the Companys economic interest in the Okoro
field to 50 per cent. (from 95 per cent.) following cost recovery, and the slower than expected ramp up of production at the Ebok field
due to longer than planned periods of non-reservoir related facilities downtime. Working interest production during the period
averaged 13,000 boepd (20,400 boepd in 1H 2010). Revenue during the period was US$161.0 million (1H 2010: US$214.8 million),
with higher price realisations partially offsetting the reduced production share year-on-year. The Company realised an average oil
price of US$110.4/bbl in 1H 2011 and an average gas price of US$8.0/mcf (1H 2010: US$77.8/bbl and US$5.2/mcf). The average
price for Brent in the period was US$111/bbl.

Gross profit
Gross profit for the period was US$79.2 million, a decrease of 18% on the prior period (1H 2010: US$97.0 million) driven largely by
the lower revenue in the period. The DD&A charge for oil and gas assets in 1H 2011 was US$53.2 million, a reduction of 16% on
the prior year (1H 2010: US$63.0 million), also due to our lower economic interest production.

Profit for the period
Profit after tax on continuing activities for the six months ended 30 June 2011 was US$22.8 million (1H 2010: US$50.7 million).
Normalised profit after tax, which excludes the effect of unrealised hedge movements, share related charges and other items, was
US$26.1 million, see note 3 to the interim report for a full reconciliation of this figure (1H 2010: US$54.5 million).

Administrative expenses increased from US$14.9 million in 1H 2010 to US$19.2 million for the six months ended 30 June 2011
reflecting the increasing scale of Afrens business. The impairment charge on oil and gas assets was US$0.2 million (2010: US$1.1
million).

Finance costs for 1H 2011 were US$22.6 million (1H 2010: US$6.2 million). Additional financing costs of US$24.6 million were
capitalised as part of the Ebok project prior to first production and the Okoro infill well programme (1H 2010: US$1.8 million).
Overall charges were increased due to the High Yield Bond issued in January 2011, a one-off charge of $7.4m relating to the early
repayment of pre-existing facilities and also the higher debt in the period, arising from the ongoing development of the Ebok field.

During the period we recognised a loss from derivative financial instruments of US$12.0 million (1H 2010: US$0.2 million gain)
relating to crude oil hedging contracts. This reflects a realised loss of US$3.4 million (1H 2010: US$0.9 million) as the oi l price
realised averaged above the hedged price during the period. There was a further mark-to-market loss of US$8.6 million (1H 2010:
US$1.1 million gain) on the unrealised positions due to further strengthening in the oil price from around US$94 per barrel at the
start of the year to over US$111 per barrel at 30 June 2011. The contracts in place are predominately put options priced between
US$80-90/bbl at an average cost of US$4/bbl over the contract length. Although these instruments have been designated as cash
flow hedges, because the oil price during the period was above the hedged price a loss is recognised for accounting purposes which
represents the expected future cost of these hedges. This loss is limited to the total cost of the put option contracts over the
remaining contract period.

The policy of the Company is to protect its minimum cashflow requirement in the context of a sustained downturn in oil prices. As
such the maximum amount of our working interest we would seek to protect with these arrangements is between 20-30% of
estimated production for a rolling period of 24 months forward.

The share of gain of an associate of US$18.3 million (1H 2010: US$0.6 million loss) relates to our interest in FHN and represents
Afrens 45% share of the result for the period plus Afrens proportionate share of the net asset value of the underlying enti ties
balance sheet. The gain principally reflects new equity funding raised by FHN, attributable to our 45% interest.

The income tax charge for the period is US$20.9 million (1H 2010: US$24.7 million).

2. Financing the Companys activities
Net cash generated from operating activities in 1H 2011 was US$16.6 million (1H 2010: US$91.4 million), and this cash has been
used alongside financing cashflows primarily to fund the Companys development, appraisal and exploration activities. The
decrease in net cash generated from operations is due to the lower operating profit and an increase in working capital as inventory
levels and receivables were higher as at 30 June 2011 due to the ongoing development and production activities.


Finance review

Afren plc | 2011 Half-yearly Results 9
In early 2011, the Company completed a Bond issue, raising US$500 million before issue costs. The coupon on the bonds is 11.5%
and they are listed on the Luxembourg Stock Exchange. The Company used part of the funds to repay borrowings amounting to
US$171 million of certain pre-existing facilities.

Gross debt before unamortised issue costs as at 30 June 2011 was US$691.3 million (1H 2010: US$218.6 million), comprising
US$500 million and US$191 million in respect of the High Yield Bond and the Ebok facility respectively. Loan repayments
in the period were US$183.8 million reflecting repayment in full of the Okoro facility and the facilities used to finance the
Cte dIvoire acquisition and periodic payments due under other facilities. Cash at bank at 30 June 2011 was US$320.9 million
(1H 2010: US$194.0 million), resulting in net debt after issue costs and excluding finance leases of US$343.0 million (1H 2010:
US$12.2 million).

3. Development, appraisal and exploration activities
The Companys investment in appraisal and exploration activities has continued during 2011, with expenditure of approximately
US$23 million (1H 2010: US$25 million). The main areas of expenditure were on OML115 (US$5.1 million), the acquisition of a 74%
interest in the Tanga block in Tanzania and seismic on the area (US$4.2 million) and expenditure, largely seismic and G&G studies,
on the newly acquired East African exploration assets (US$6.6 million).

Development expenditure was US$212 million, comprising US$172 million on the Ebok field and US$40 million on the Okoro infi ll
programme.

4. Ebok finance lease
In 1H 2011 the Group recognised a finance lease in respect of the arrangements with Mercator Offshore Nigeria (Pte) Limited for the
production facilities on the Ebok field. This resulted in a finance lease liability at 30 June 2011 of US$162.5 million to be settled in
monthly payments of US$2.4 million (including interest) over a seven year period.

5. 2H 2011 Acquisition & equity placement
In July 2011 (post period end), the Company announced the acquisition of interests in two contiguous PSCs located in the Kurdistan
region of Iraq. The total amount payable for the acquisition is approximately US$588.3 million. In parallel the Company announced
the successful placement of 83,679,544 ordinary shares, raising a total of 113.0 million (US$184.5 million) before fees which will be
used, together with cash and debt resources, to fund the acquisition.

6. Related party transactions
Related party transactions are disclosed in note 9 to the condensed set of financial statements. There have been no material
changes in the related party transactions described in the last annual report.

7. Principal risks to 2011 performance
There are a number of potential risks and uncertainties which could have a material impact on the Groups performance over the
remaining six months of the financial year and could cause actual results to differ materially from expected and historical results.
The Directors do not consider that the principal risks and uncertainties have changed since the publication of Annual Report and
Accounts for the year ended 31 December 2010. The principal risks faced by Afren relate to operational risks involving the delivery
of the Ebok, Okoro and CI-11 production targets, political risks in Nigeria, Cte dIvoire and Kurdistan and strategic risks associated
with the growth of the organisation and the economic climate. A detailed explanation of these risks can be found on pages 42 to 43
of the 2010 Annual Report and Accounts which is available at www.afren.com.

8. Going concern
As stated in note 1 to the condensed financial statements, the Directors are satisfied that the Group has sufficient resources to
continue in operation for the foreseeable future, being 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 financial statements.

The outlook for the remainder of 2011 is positive. We continue to make good operational progress, with reservoir performance and
drilling results at our Ebok and Okoro fields at the upper end of expectations and we are ramping up production towards our targeted
50,000 boepd exit rate. Our planned exploration campaign is due to commence shortly with the drilling of key wells in each of our
core regions that, if successful, could materially increase the Companys reserves base. Financially we are in a strong position with
low gearing and substantial resources available to execute our planned work programme and pursue further inorganic growth
opportunities that are available to us.

Responsibility statement

Afren plc | 2011 Half-yearly Results 10
The Directors confirm that to the best of their knowledge:

a) the condensed set of financial statements has been prepared in accordance with lAS 34 'Interim Financial Reporting';

b) the Half-yearly management report includes a fair review of the information required by DTR 4.2.7R (indication of important
events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and

c) the Half-yearly management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties'
transactions and changes therein).

By order of the Board,

Osman Shahenshah Darra Comyn
Chief Executive Group Finance Director

26 August 2011 26 August 2011


Disclaimer

This statement contains certain forward-looking statements. These statements are made by the Directors in good faith based on
the information available to them up to the time of their approval of this report but such statements should be treated with caution
due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking
information. This interim management report has been prepared solely to provide additional information to shareholders to assess
the Groups strategies and the potential for those strategies to succeed. The report should not be relied on by any other party or for
any other purpose.



Independent review report to Afren plc

Afren plc | 2011 Half-yearly Results 11
We have been engaged by the Company to review the condensed set of financial statements in the Half-yearly financial report for
the six months ended 30 June 2011 which comprises the condensed group income statement, the condensed group balance sheet,
the condensed group statement of changes in equity, the condensed group cash flow statement, and related notes 1 to 11. We
have read the other information contained in the Half-yearly financial report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the Company in accordance with International Standard on Review Engagements (UK and Ireland)
2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Auditing Practices
Board. Our work has been undertaken so that we might state to the Company those matters we are required to state to it in an
independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company, for our review work, for this report, or for the conclusions we have formed.

Directors' responsibilities
The Half-yearly financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for
preparing the Half-yearly financial report in accordance with the Disclosure and Transparency Rules of the United Kingdoms
Financial Services Authority.

As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with IFRS as adopted by the
European Union. The condensed set of financial statements included in this Half-yearly financial report has been prepared in
accordance with International Accounting Standard 34, Interim Financial Reporting, as adopted by the European Union.

Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the Half-yearly
financial report based on our review.

Scope of Review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 Review of
Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than
an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to
obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not
express an audit opinion.

Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in
the Half-yearly financial report for the six months ended 30 June 2011 is not prepared, in all material respects, in accordance with
International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United
Kingdom's Financial Services Authority.


Deloitte LLP
Chartered Accountants and Statutory Auditor
London, United Kingdom
26 August 2011


Afren plc | 2011 Half-yearly Results 12

Condensed Group Income Statement
for the six months to 30 June 2011
Notes
6 months to
30 June
2011
Unaudited
US$000s
6 months to
30 June
2010
Unaudited
US$000s
Year to
31 December 2010
Audited
US$000s
Revenue 161,005 214,750 319,447
Cost of sales (81,838) (117,755) (190,451)
Gross profit 79,167 96,995 128,996

Administrative expenses (19,178) (14,871) (29,500)
Other operating (expenses)/ income
impairment of oil and gas assets (171) (1,143) (1,614)
derivative financial instruments (12,029) 153 (8,894)

Operating profit 47,789 81,134 88,988
Investment revenue 160 237 298
Finance costs (22,615) (6,185) (11,320)
Other gains and (losses)
foreign currency gains 372 524 305
fair value of financial liabilities and
financial assets (232) 280 (8,100)
Share of gain/(loss) of an associate 18,274 (604) 8,625
Profit from continuing activities before tax 43,748 75,386 78,796
Income tax expense (20,947) (24,662) (32,923)
Profit from continuing activities after tax 3 22,801 50,724 45,873

Discontinued operations
Loss for the period from discontinued operations (2,137) (614)
Profit for the period 20,664 50,724 45,259

Profit per share from continuing operations
Basic 2 2.3c 5.7c 5.1c
Diluted 2 2.2c 5.2c 4.9c

Profit per share from continuing and discontinued
operations

Basic 2 2.1c 5.7c 5.0c
Diluted 2 2.0c 5.2c 4.8c


There are no items of comprehensive income not included in the income statement.

Afren plc | 2011 Half-yearly Results 13


Condensed Group Balance Sheet
as at 30 June 2011

30 June 2011
Unaudited
US$000s
30 June 2010
Unaudited
US$000s

31 December 2010
Audited
US$000s
Assets
Non-current assets
Intangible oil and gas assets 467,171 209,409 443,761
Property, plant and equipment
Oil and gas assets 1,120,879 568,423 759,167
Other 10,581 6,764 6,919
Prepayments 1,283 2,683 1,983
Derivative financial instruments 13,758 1,818
Investment in associates 32,501 11,227
1,646,173 789,097 1,223,057
Current assets
Inventories 70,503 46,020 39,055
Trade and other receivables 114,873 103,934 41,343
Derivative financial instruments 3,733
Cash and cash equivalents 320,904 194,019 140,221
506,280 347,706 220,619
Assets held for sale 2,812
Total assets 2,152,453 1,136,803 1,446,488

Liabilities
Current liabilities
Derivative financial instruments (10,919) (3,277) (4,927)
Borrowings (86,000) (72,000) (89,254)
Obligations under finance lease 6 (21,222)
Trade and other payables (286,797) (148,562) (216,037)
(404,938) (223,839) (310,218)
Net current assets/(liabilities) 101,342 123,867 (86,787)

Non-current liabilities
Deferred tax liabilities (59,721) (34,430) (63,470)
Provision for decommissioning (37,428) (30,341) (35,119)
Borrowings (577,881) (134,238) (178,467)
Obligations under finance lease 6 (141,232)
Derivative financial instruments (16,849) (135) (499)
(833,111) (199,144) (277,555)
Total liabilities (1,238,049) (422,983) (587,773)
Net assets 914,404 713,820 858,715

Equity
Share capital 17,248 15,734 17,007
Share premium 913,951 756,469 896,812
Other reserves 20,102 17,674 22,764
Accumulated losses (36,897) (76,057) (77,868)
Total equity 914,404 713,820 858,715


Afren plc | 2011 Half-yearly Results 14


Condensed Group Cash Flow Statement
for the six months to 30 June 2011

6 months to
30 June 2011
Unaudited
US$000s
6 months to
30 June 2010
Unaudited
US$000s

Year to
31 December 2010
Audited
US$000s
Operating profit for the year/period 47,789 81,134 88,988
Depreciation, depletion and amortisation 54,835 64,736 93,979
Derivative financial instruments losses/(gains) 8,584 (1,082) 6,482
Impairment of oil and gas assets 171 1,143 1,614
Share based payments charge 5,711 3,125 8,333
Operating cashflows before movements in working capital 117,090 149,056 199,396
Cash used by discontinued operating activities (2,163) (28)
(Increase)/decrease in trade and other operating receivables (76,711) (53,665) 16,046
Increase/(decrease) in trade and other operating payables 3,724 (2,770) (11,793)
(Increase)/decrease in inventory - crude oil (25,509) (1,061) 5,895
Currency translation adjustments 183 (200) (199)
Net cash generated in operating activities 16,614 91,360 209,317

Purchases of property, plant and equipment
Other (2,470) (1,477) (3,209)
Oil and gas assets (190,881) (110,802) (295,443)
Exploration and evaluation expenditure (27,952) (23,292) (59,739)
Increase in inventories spare parts (5,939) (10,394) (10,386)
Purchase of investments (750) (1,998)
Investment revenue 160 237 298
Acquisition of subsidiaries in 2010, net of cash acquired 2,289
Net cash used in investing activities (227,832) (145,728) (368,188)

Issue of ordinary share capital 17,360 1,332 5,191
Costs of share issues (2,381)
Net proceeds from borrowings 564,647 18,970 100,217
Repayment of borrowings (183,845) (83,711) (110,970)
Interest and financing fees paid (6,630) (9,906) (14,493)
Net cash provided/(used) infinancing activities 391,532 (73,315) (22,436)

Net increase/(decrease) in cash and cash equivalents 180,314 (127,683) (181,307)
Cash and cash equivalents at beginning of year/period 140,221 321,312 321,312
Effect of foreign exchange rate changes 369 390 216
Cash and cash equivalents at end of year/period 320,904 194,019 140,221


Afren plc | 2011 Half-yearly Results 15


Condensed Group Statement of Changes in Equity
for the six months ended 30 June 2011 (unaudited)

Share capital
US$000s
Share premium
account
US$000s
Other reserves
US$000s
Accumulated
losses
US$000s
Total equity
US$000s
Group
At 1 January 2010 15,702 755,169 17,272 (129,895) 658,248
Issue of share capital 32 1,300 1,332
Deductible costs of share issues (1,000) (1,000)
Share based payments for services 4,464 4,464
Other share based payments 52 52
Reserves transfer relating to loan notes (1,216) 1,216
Reserves transfer on exercise of options,
awards and LTIP (1,898) 1,898
Net profit for the period 50,724 50,724
Balance at 30 June 2010 15,734 756,469 17,674 (76,057) 713,820

Issue of share capital 1,273 142,724 143,997
Shares to be issued 500 500
Deductible costs of share issues (2,381) 1,000 (1,381)
Share based payments for services 4,895 4,895
Other share based payments 261 261
Reserves transfer relating to loan notes (1,258) 1,258
Reserves transfer on exercise of options,
awards and LTIP (308) 308
Exercise of warrants designated as
financial liabilities 2,088 2,088
Net loss for the period (5,465) (5,465)
Balance at 1 January 2011 17,007 896,812 22,764 (77,868) 858,715

Issue of share capital 241 17,139 17,380
Share based payments for services 5,963 5,963
Other share based payments 28 28
Reserves transfer relating to loan notes (2,194) 2,194
Reserves transfer on exercise of options,
awards and LTIP (6,459) 6,459
Exercise of warrants designated as
financial liabilities 11,654 11,654
Net profit for the period 20,664 20,664
Balance at 30 June 2011 17,248 913,951 20,102 (36,897) 914,404


Notes to the Interim Financial Statements (unaudited)

Afren plc | 2011 Half-yearly Results 16
1. Basis of accounting and presentation of financial information
The annual financial statements of Afren plc are prepared in accordance with IFRS as adopted by the European Union. The
condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International
Accounting Standard (IAS) 34, Interim Financial Reporting, as adopted by European Union. The information for the year ended
31 December 2010 does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. Statutory accounts
for the year ended 31 December 2010 were published and copies of which have been delivered to the Companies House. The
auditors reported on those accounts: their report was unqualified, did draw attention to any matters by way of emphasis and did not
contain any statement under sections 498(2) or (3) of the Companies Act 2006.

Changes in accounting policy

With the exception of the additional policy in relation to finance leases below, the same accounting policies, presentation and
methods of computation have been followed in the condensed set of financial statements as applied in the preparation of the
Group's latest audited financial statements.

Leasing
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership
to the lessee. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets of the Group at their fair value or, if lower, at the present value of the
minimum lease payments, each determined at the inception of the lease. The corresponding liability to the lessor is included in the
balance sheet as a finance lease obligation.

Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rat e
of interest on the remaining balance of the liability. Finance expenses are recognised immediately in profit or loss, unless they are
directly attributable to qualifying assets, in which case they are capitalised in accordance with the Groups general policy on
borrowing costs. Contingent rentals are recognised as expenses in the period in which they are incurred.

Rentals payable under operating leases are charged to income on a straight-line basis over the term of the relevant lease except
where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are
consumed. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are
incurred. In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability.
The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis, except where another
systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

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.


Notes to the Interim Financial Statements (unaudited)

Afren plc | 2011 Half-yearly Results 17
2. Profit per ordinary share

Period ended 30 June

2011 2010
From continuing and discontinued operations
Basic
2.1c 5.7c
Diluted
2.0c 5.2c

From continuing operations
Basic
2.3c 5.7c
Diluted
2.2c 5.2c

The profit and weighted average number of ordinary shares used in the calculation of the profit per share are as follows:

Profit for the period used in the calculation of the basic profit per share from continuing and
discontinued operations (US$000's) 20,664 50,724
Effect of dilutive potential ordinary shares
Profit for the period used in the calculation of the diluted profit per share from continuing and
discontinued operations (US$000's) 20,664 50,724
Loss for the period from discontinued operations (2,137)
Profit used in the calculation of the basic and diluted profit per share from continuing
activities (US$000's) 22,801 50,724

The weighted average number of ordinary shares for the purposes of diluted profit per share reconciles to the weighted average number of
ordinary shares used in the calculation of basic profit per share as follows:

Weighted average number of ordinary shares used in the calculation of basic
profit per share 977,413,016 890,227,484
Effect of dilutive potential ordinary shares:
Share scheme awards
51,534,223 73,218,456
Warrants
1,627,761 14,548,316
Weighted average number of ordinary shares used in the calculation of diluted
profit per share 1,030,575,000 977,994,256

In 2010, 12 million potential ordinary shares were anti-dilutive and therefore excluded from the weighted average number of ordinary
shares for the purposes of diluted earnings per share. There were no excluded potential ordinary shares as at 30 June 2011.

Notes to the Interim Financial Statements (unaudited)

Afren plc | 2011 Half-yearly Results 18
3. Reconciliation of profit after tax to normalised profit after tax
2011
US$000's
2010
US$000's
Profit after tax 22,801 50,724
Unrealised losses/(gains) on derivative financial instruments* 8,584 (1,082)
Cost of acquisition of Black Marlin 1,929
Finance costs on settlement of borrowings 7,431
Share based payment charge 5,711 3,125
Foreign exchange gains (372) (524)
Fair value financial liabilities 232 (280)
Share of (gain)/loss of associate (18,274) 604
Normalised profit after tax 26,113 54,496

*Excludes realised losses on derivative financial instruments of US$3.4 million (1H 2010: US$0.9 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 similar titled measures reported by
other companies.


Notes to the Interim Financial Statements (unaudited)

Afren plc | 2011 Half-yearly Results 19
4. Operating Segments
For management purposes, the Group currently operates in four geographical markets: Nigeria, Cte dIvoire, Other West Africa and
Eastern 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
Unallocated
US$000s
Consolidated
US$000s
Six months to June 2011
Sales revenue by origin 130,980 30,025

161,005



Operating profit/(loss) before derivative
financial instruments 60,933 15,366 (23) (475) (15,983) 59,818
Derivative financial instruments (losses)/gains (10,758) (1,271) (12,029)
Segment result 50,175 14,095 (23) (475)
(15,983)
47,789
Investment revenue

160
Finance costs

(22,615)
Other gains and losses fair value of financial assets & liabilities

(232)
Other gains and losses foreign currency gains

372
Share of loss of an associate

18,274
Profit from continuing operations before tax 43,748
Income tax expense (20,947)
Profit from continuing operations after tax 22,801
Loss from discontinued operations (2,137)
Profit for the period 20,664




Segment assets non-current 1,217,897 146,559 75,160 201,844 4,713 1,646,173
Segment assets current 193,082 58,696 7,515 696 246,291 506,280
Segment liabilities (614,982) (55,223) (5,013) (39,985) (522,846) (1,238,049)
Capital additions oil and gas assets 414,885 43 414,928
Capital additions exploration and evaluation 9,591 561 6,718 6,711 23,581
Capital additions other 598 1
2,813 1,998 5,410
Capital disposal other

(68) (52) (120)
Depletion, depreciation and amortisation (46,614) (7,316)
(1) (904) (54,835)
Exploration costs write-off (17) (154) (171)

Notes to the Interim Financial Statements (unaudited)

Afren plc | 2011 Half-yearly Results 20
4. 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
Year to December 2010


Sales revenue by origin 286,546 32,568 131 202 319,447

Operating gain/(loss) before derivative financial
instruments 128,053 (2,583) (2,051)


(248)


(25,289) 97,882
Derivative financial instruments gains (3,270) (5,624)
(8,894)
Segment result 124,783 (8,207) (2,051) (248) (25,289) 88,988
Investment revenue 298
Finance costs (11,320)
Other gains and losses fair value of financial liabilities (8,100)
Other gains and losses foreign currency losses 305
Share of loss of an associate 8,625
Profit from continuing operations before tax 78,796
Income tax expense (32,923)
Profit from continuing operations after tax 45,873
Loss from discontinued operations (614)
Profit for the period 45,259



Segment assets non-current 805,105 153,270 68,459 192,548 3,675 1,223,057
Segment assets current 172,251 15,818 6,107 2,046 24,397 220,619
Assets held for sale 2,812 2,812
Segment liabilities (352,857) (110,545) (5,090) (47,967) (71,314) (587,773)
Capital additions oil and gas assets 362,879 119 362,998
Capital additions exploration and evaluation 59,462 1,723 7,559 192,470 261,214
Capital additions other 488 453 270 2,188 3,399
Capital disposal other (815) (815)
Depletion, depreciation and amortisation (76,708) (15,668) (3) (1,600) (93,979)
Exploration costs write back/(write-off) 370 (1,984) (1,614)


Notes to the Interim Financial Statements (unaudited)

Afren plc | 2011 Half-yearly Results 21
4. Operating Segments continued

Nigeria
US$000s
Cte dIvoire
US$000s
Other West
Africa
US$000s
Unallocated
US$000s
Consolidated
US$000s
Six months to June 2010
Sales revenue by origin 197,100 17,650 214,750

Operating loss before derivative
financial instruments 93,394 (107) (1,214) (11,092) 80,981
Derivative financial instruments losses (1,538) 1,691 153
Segment result 91,856 1,584 (1,214) (11,092) 81,134
Investment revenue 237
Finance costs (6,185)
Other gains and losses fair value of financial assets & liabilities 280
Other gains and losses foreign currency gains 524
Share of loss of an associate (604)
Profit before tax 75,386
Income tax expense (24,662)
Profit after tax 50,724



Segment assets non-current 557,003 161,277 67,614 3,203 789,097
Segment assets current 201,155 26,826 8,546 111,179 347,706
Segment liabilities (244,598) (119,623) (5,293) (53,469) (422,983)
Capital additions oil and gas assets 144,602 191 144,793
Capital additions exploration
and evaluation 19,734 785 4,729 25,248
Capital additions other 22 305 327
Capital disposal other (559) (559)
Depletion, depreciation and
amortisation (55,672) (8,325) (740) (64,737)
Impairment reversal/(change) on oil
and gas assets 25 (1,168) (1,143)



Notes to the Interim Financial Statements (unaudited)

Afren plc | 2011 Half-yearly Results 22
5. Senior secured loan notes
On 27 January 2011, Afren offered US$450 million aggregate principal amount of its 11.5% seni or secured notes due 2016
(the Notes) and on 11 February 2011, Afren announced an offering of an additional US$50 million of its 11.5% senior secured notes
due 2016. Part of the proceeds of the offering were used to settle borrowings amounting to US$175.6 million (net of issue costs)
and accrued interest of US$1.3 million. Also payable was an early redemption fee on the previously existing Sojitz notes, amounting
to US$2.5 million.

Interest amounting to US$23.4 million (before capitalisation of some of the interest to oil and gas assets under development) has
been charged to the Income statement for the period to 30 June 2011. Total expenses of the offering incurred amounted to
US$22.1 million which are being amortised over the life the Notes.

6. Obligations under finance lease
The Group has a seven year lease of a Mobile Offshore Production Unit (MOPU) and a Floating Storage Offloading Vessel (FSO)
from Mercator Offshore (Nigeria) Limited. The capex day rate payable is accounted for as a finance lease and consequently, the
present value of the lease as at 30 June 2011 of US$141.2 million and US$21.2 million has been reported in the balance sheet in
non-current and current liabilities respectively. Interest on the finance lease included in the income statement during the period was
US$1.6 million.

7. Contingent liabilities
There has been no change to the contingencies reported in the annual report for the year ended 31 December 2010.

8. Subsequent events
On 27 July 2011, Afren announced the proposed acquisition of a 60 per cent. participating interest in the Barda Rash PSC and 20
per cent. participating interest in the Ain Sifni PSC, located in the Kurdistan region of Iraq. Total acquisition costs are approximately
US$588.25 million and include approximately US$81.0 million back costs and US$14.0 million 2011 capex related to Ain Sifni. The
acquisition will be financed by a mix of equity, debt and cash.

On 28 July 2011, Afren announced that it had raised 113.0 million (approximately US$184.5 mill ion) before commissions and
expenses by placing 83,679,544 new ordinary shares of the Company. The placing proceeds will be used to fund the acquisition
described in the above paragraph.

9. Related party transactions
Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are
not disclosed in this note.

During the period, Group companies entered into the following transactions with related parties who are not members of the Group:

Trading transactions

(Sales)/Purchase of
goods/services
Amounts owed
from/(to) related parties

Six months
ended
30 June
2011
US$000s
Six months
ended
30 June 2010
US$000s
As at 30
June 2011
US$000s
As at 30
June 2010
US$000s
Energy Investment Holdings Ltd 242 244 110 (97)
St. John Advisors Ltd 121 150
STJ Advisors LLP 1,150
Tzell Travel Group 432 143 (13) (16)
First Hydrocarbon Nigeria Limited 2,241

Energy Investment Holdings Ltd is the contractor company for the consulting services of Bert Cooper. Bert Cooper was a director of
a subsidiary of the company until 23 July 2010. The majority of the payments in 2011 related to his monthly fee.

St. John Advisors is the contractor company for the consulting services of John St. John, a Non-executive Director. St. John
Advisors also receive a monthly retainer of 15,000 for consulting advice. This contract is for 12 months from 27 June 2008 and
automatically continues thereafter unless terminated by either party. A separate contract was engaged in 2010 with STJ Advisors
LLP for consulting services in relation to the Senior Note which completed on 27 January 2011.

Notes to the Interim Financial Statements (unaudited)

Afren plc | 2011 Half-yearly Results 23
Tzell Travel Group operates as a franchise. The franchisee utilised by Afren for some of its travel needs is a close family member of
the Chief Executive Officer and Tzell Travel Group is therefore considered a related party. Afren uses several travel agents as there
is a significant travel element to its operations and Tzell competes on an even basis with these. Tzell provided approximately 10%
(2010: 8%) of the travel arrangements by value.

First Hydrocarbon Nigeria Limited (FHN) is an associate company of Afren plc.
The amounts outstanding are unsecured and are expected to be settled in cash. No guarantees have been given or received. No
provisions have been made for doubtful debts on the amounts owed by related parties.

10. Dividend
The directors do not recommend the payment of a dividend.

11. Approval of accounts
These interim accounts (unaudited) were approved by the Board of Directors on 26 August 2011.


Advisors and Company Secretary

Afren plc | 2011 Half-yearly Results 24
Company Secretaries and
Registered Office
Ms. Shirin Johri
Mr. Elekwachi Ukwu
Afren plc
Kinnaird House
1 Pall Mall East
London SW1Y 5AU
Company number: 05304498

Sponsor and Broker
Merrill Lynch International
Bank of America Merrill Lynch Financial Centre
2 King Edward Street
London EC1A 1HQ
United Kingdom
www.ml.com

Joint Broker
Morgan Stanley
20 Bank Street
London E14 4AD
www.morganstanley.com

Auditors
Deloitte LLP
Chartered Accountants and Registered Auditors
2 New Street Square
London EC4A 3BZ
www.deloitte.com

Financial PR Adviser
Pelham Public Relations
12 Arthur Street
London EC4R 9AB
www.pelhampr.com


Registrars
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol BS13 8AE
www.computershare.co.uk

Legal Advisers
White & Case LLP
5 Old Broad Street
London
EC2N 1DW

Dr Ken Mildwaters
Walton House
25 Bilton Road
Rugby CV22 7AG

Principal Bankers
Lloyds TSB Bank Plc
39 Threadneedle Street
London EC2R 8AU
www.lloydstsb.com


Advisors and Company Secretary

Afren plc | 2011 Half-yearly Results 25
Afren plc
Kinnaird House
1 Pall Mall East
London SW1Y 5AU
England

T: +44 (0)20 7451 9700
F: +44 (0)20 7451 9701

www.afren.com
Email: info@afren.com

Afren Nigeria
1st Floor, The Octagon
13A, A.J. Marinho Drive
Victoria Island Annexe
Lagos
Nigeria

T: +234 (1) 4610130 3
F: +234 (1) 460139

Afren Cte dIvoire, Limited
Avenue Delafosse Prolonge
RDC Rsidence Pelieu
04 B P 827 Abidjan 04
Cte dIvoire

T: +225 20 254 000
F: +225 20 226 229

Afren Resources USA, Inc
10001 Woodloch Forest Drive
Suite 360
The Woodlands
Texas 77380
USA

T: +1 281 363 8600
F: +1 281 292 0019

Afren East Africa Exploration Limited
Room No. 2 Mezzanine Floor
Hughes Building
Muindi Mbingu Street
Nairobi
Kenya

T: +254 729 943 249