Afren Advances After ‘Significant’ Light-Oil Find: London Mover

Afren Plc, a U.K. oil explorer in Africa and northern Iraq, rose in London after its Ogo well discovered a “significant” light-oil field in Nigeria.

Afren gained 7.3 percent to 130.6 pence, the second biggest gain on the benchmark FTSE All-Share index. Its well was drilled to 10,518 feet (3,206 meters) and encountered a 524 feet gross hydrocarbon section, London-based Afren said in a statement.

“Based on evidence to date, targeted resources are likely to be significantly in excess of previous estimates” of 78 million barrels of oil equivalent, Afren said.

Afren holds 23 percent of OPL 310, where the well is located, and Lekoil Ltd. and Optimum Petroleum own the rest. Lekoil rose 9.6 percent to 38.375 pence in London.

“It opens up an underexplored oil basin with potential for further upside to pre-drill estimates,” FirstEnergy Capital LLC said in a note.

Afren in May sold about 17 percent of OPL 310 to Lekoil for about $50 million. The U.K. explorer bought a stake in the license from Optimum in 2008.

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