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 Halfyearly 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 Turnover (US$mm) Gross Profit (US$mm) Profit/(Loss) Before Tax (US$mm) Normalised Profit/(Loss) After Tax (US$mm)* Net W.I. production (boepd)** Realised oil price (US$/bbl) Realised gas price (US$/mcf)
*See note 3 of the interim financial statements **Working interest, including natural gas liquids

1H 2010 214.8 97.0 75.4 54.5 20,400 77.8 5.2

Change (25.0)% (18.4)% (42.0)% (52.1)% (36.3)% 41.9% 53.8%

161.0 79.2 43.7 26.1 13,000 110.4 8.0

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 1

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.

Afren plc | 2011 Half-yearly Results 2

Operations review
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 downtime 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 downhole 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 production 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 wells 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

Afren plc | 2011 Half-yearly Results 3

Operations review
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 quick-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 Nigerian 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 along 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.

Afren plc | 2011 Half-yearly Results 4

Operations review

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 appraisal 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 2 between the Ibhubesi gas field and the Namaqualand coast. The block covers an area of approximately 5,000 km with water 2 depths ranging from shore line to 250 metres. The partners near term work programme involves the acquisition of 600 km 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.

Afren plc | 2011 Half-yearly Results 5

Operations review

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 seismic 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 offshore 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 ElKuran 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.

Afren plc | 2011 Half-yearly Results 6

Operations review
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 million 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 quality 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.

Afren plc | 2011 Half-yearly Results 7

Finance review
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 oil 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 entities 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.

Afren plc | 2011 Half-yearly Results 8

Finance review
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 infill 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.

Afren plc | 2011 Half-yearly Results 9

Responsibility statement
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 Chief Executive 26 August 2011 Darra Comyn Group Finance Director 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.

Afren plc | 2011 Half-yearly Results 10

Independent review report to Afren plc

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 11

Condensed Group Income Statement

for the six months to 30 June 2011 6 months to 30 June 2011 Unaudited US$000s 161,005 (81,838) 79,167 6 months to 30 June Year to 2010 31 December 2010 Unaudited Audited US$000s US$000s 214,750 (117,755) 96,995 319,447 (190,451) 128,996

Notes Revenue Cost of sales Gross profit

Administrative expenses Other operating (expenses)/ income impairment of oil and gas assets derivative financial instruments

(19,178)

(14,871)

(29,500)

(171) (12,029)

(1,143) 153

(1,614) (8,894)

Operating profit Investment revenue Finance costs Other gains and (losses) foreign currency gains fair value of financial liabilities and financial assets Share of gain/(loss) of an associate Profit from continuing activities before tax Income tax expense Profit from continuing activities after tax 3

47,789 160 (22,615)

81,134 237 (6,185)

88,988 298 (11,320)

372 (232) 18,274 43,748 (20,947) 22,801

524 280 (604) 75,386 (24,662) 50,724

305 (8,100) 8,625 78,796 (32,923) 45,873

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

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

Profit per share from continuing and discontinued operations Basic Diluted 2 2 2.1c 2.0c 5.7c 5.2c 5.0c 4.8c

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

Afren plc | 2011 Half-yearly Results 12

Condensed Group Balance Sheet

as at 30 June 2011

30 June 2011 Unaudited US$000s Assets Non-current assets Intangible oil and gas assets Property, plant and equipment Oil and gas assets Other Prepayments Derivative financial instruments Investment in associates Current assets Inventories Trade and other receivables Derivative financial instruments Cash and cash equivalents Assets held for sale Total assets Liabilities Current liabilities Derivative financial instruments Borrowings Obligations under finance lease Trade and other payables Net current assets/(liabilities) Non-current liabilities Deferred tax liabilities Provision for decommissioning Borrowings Obligations under finance lease Derivative financial instruments Total liabilities Net assets Equity Share capital Share premium Other reserves Accumulated losses Total equity 17,248 913,951 20,102 (36,897) 914,404 6 (59,721) (37,428) (577,881) (141,232) (16,849) (833,111) (1,238,049) 914,404 6 (10,919) (86,000) (21,222) (286,797) (404,938) 101,342 70,503 114,873 320,904 506,280 2,152,453 1,120,879 10,581 1,283 13,758 32,501 1,646,173 467,171

30 June 2010 Unaudited US$000s

31 December 2010 Audited US$000s

209,409 568,423 6,764 2,683 1,818 789,097 46,020 103,934 3,733 194,019 347,706 1,136,803

443,761 759,167 6,919 1,983 11,227 1,223,057 39,055 41,343 140,221 220,619 2,812 1,446,488

(3,277) (72,000) (148,562) (223,839) 123,867

(4,927) (89,254) (216,037) (310,218) (86,787)

(34,430) (30,341) (134,238) (135) (199,144) (422,983) 713,820

(63,470) (35,119) (178,467) (499) (277,555) (587,773) 858,715

15,734 756,469 17,674 (76,057) 713,820

17,007 896,812 22,764 (77,868) 858,715

Afren plc | 2011 Half-yearly Results 13

Condensed Group Cash Flow Statement

for the six months to 30 June 2011

6 months to 30 June 2011 Unaudited US$000s Operating profit for the year/period Depreciation, depletion and amortisation Derivative financial instruments losses/(gains) Impairment of oil and gas assets Share based payments charge Operating cashflows before movements in working capital Cash used by discontinued operating activities (Increase)/decrease in trade and other operating receivables Increase/(decrease) in trade and other operating payables (Increase)/decrease in inventory - crude oil Currency translation adjustments Net cash generated in operating activities Purchases of property, plant and equipment Other Oil and gas assets Exploration and evaluation expenditure Increase in inventories spare parts Purchase of investments Investment revenue Acquisition of subsidiaries in 2010, net of cash acquired Net cash used in investing activities Issue of ordinary share capital Costs of share issues Net proceeds from borrowings Repayment of borrowings Interest and financing fees paid Net cash provided/(used) infinancing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year/period Effect of foreign exchange rate changes Cash and cash equivalents at end of year/period (2,470) (190,881) (27,952) (5,939) (750) 160 (227,832) 17,360 564,647 (183,845) (6,630) 391,532 180,314 140,221 369 320,904 47,789 54,835 8,584 171 5,711 117,090 (2,163) (76,711) 3,724 (25,509) 183 16,614

6 months to 30 June 2010 Unaudited US$000s 81,134 64,736 (1,082) 1,143 3,125 149,056 (53,665) (2,770) (1,061) (200) 91,360

Year to 31 December 2010 Audited US$000s 88,988 93,979 6,482 1,614 8,333 199,396 (28) 16,046 (11,793) 5,895 (199) 209,317

(1,477) (110,802) (23,292) (10,394) 237 (145,728) 1,332 18,970 (83,711) (9,906) (73,315) (127,683) 321,312 390 194,019

(3,209) (295,443) (59,739) (10,386) (1,998) 298 2,289 (368,188) 5,191 (2,381) 100,217 (110,970) (14,493) (22,436) (181,307) 321,312 216 140,221

Afren plc | 2011 Half-yearly Results 14

Condensed Group Statement of Changes in Equity

for the six months ended 30 June 2011 (unaudited)

Share capital US$000s Group At 1 January 2010 Issue of share capital Deductible costs of share issues Share based payments for services Other share based payments Reserves transfer relating to loan notes Reserves transfer on exercise of options, awards and LTIP Net profit for the period Balance at 30 June 2010 Issue of share capital Shares to be issued Deductible costs of share issues Share based payments for services Other share based payments Reserves transfer relating to loan notes Reserves transfer on exercise of options, awards and LTIP Exercise of warrants designated as financial liabilities Net loss for the period Balance at 1 January 2011 Issue of share capital Share based payments for services Other share based payments Reserves transfer relating to loan notes Reserves transfer on exercise of options, awards and LTIP Exercise of warrants designated as financial liabilities Net profit for the period Balance at 30 June 2011 15,702 32 15,734 1,273 17,007 241 17,248

Share premium account US$000s 755,169 1,300 756,469 142,724 (2,381) 896,812 17,139 913,951

Other reserves US$000s 17,272 (1,000) 4,464 52 (1,216) (1,898) 17,674 500 1,000 4,895 261 (1,258) (308) 22,764 5,963 28 (2,194) (6,459) 20,102

Accumulated losses US$000s (129,895) 1,216 1,898 50,724 (76,057) 1,258 308 2,088 (5,465) (77,868) 2,194 6,459 11,654 20,664 (36,897)

Total equity US$000s 658,248 1,332 (1,000) 4,464 52 50,724 713,820 143,997 500 (1,381) 4,895 261 2,088 (5,465) 858,715 17,380 5,963 28 11,654 20,664 914,404

Afren plc | 2011 Half-yearly Results 15

Notes to the Interim Financial Statements (unaudited)

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 rate 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.

Afren plc | 2011 Half-yearly Results 16

Notes to the Interim Financial Statements (unaudited)

2. Profit per ordinary share
Period ended 30 June 2011
From continuing and discontinued operations Basic Diluted

2010 5.7c 5.2c

2.1c 2.0c

From continuing operations Basic Diluted

2.3c 2.2c

5.7c 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) 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) Loss for the period from discontinued operations Profit used in the calculation of the basic and diluted profit per share from continuing activities (US$000's)

20,664 20,664 (2,137) 22,801

50,724 50,724 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 Effect of dilutive potential ordinary shares: Share scheme awards Warrants Weighted average number of ordinary shares used in the calculation of diluted profit per share 51,534,223 1,627,761 1,030,575,000 73,218,456 14,548,316 977,994,256

977,413,016

890,227,484

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.

Afren plc | 2011 Half-yearly Results 17

Notes to the Interim Financial Statements (unaudited)

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

Afren plc | 2011 Half-yearly Results 18

Notes to the Interim Financial Statements (unaudited)

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.
Other West Africa US$000s

Nigeria Cte dIvoire US$000s US$000s Six months to June 2011 Sales revenue by origin Operating profit/(loss) before derivative financial instruments Derivative financial instruments (losses)/gains Segment result Investment revenue Finance costs Other gains and losses fair value of financial assets & liabilities Other gains and losses foreign currency gains Share of loss of an associate Profit from continuing operations before tax Income tax expense Profit from continuing operations after tax Loss from discontinued operations Profit for the period 130,980 30,025

Eastern Africa Unallocated US$000s US$000s

Consolidated US$000s 161,005

60,933 (10,758) 50,175

15,366 (1,271) 14,095

(23) (23)

(475) (475)

(15,983) (15,983)

59,818 (12,029) 47,789 160 (22,615) (232) 372 18,274 43,748 (20,947) 22,801 (2,137) 20,664

Segment assets non-current Segment assets current Segment liabilities Capital additions oil and gas assets Capital additions exploration and evaluation Capital additions other Capital disposal other Depletion, depreciation and amortisation Exploration costs write-off

1,217,897 193,082 (614,982) 414,885 9,591 598 (46,614)

146,559 58,696 (55,223) 43 561 1 (7,316)

75,160 7,515 (5,013) 6,718 (17)

201,844 696 (39,985) 6,711 2,813 (68) (1) (154)

4,713 246,291 (522,846) 1,998 (52) (904)

1,646,173 506,280 (1,238,049) 414,928 23,581 5,410 (120) (54,835) (171)

Afren plc | 2011 Half-yearly Results 19

Notes to the Interim Financial Statements (unaudited)

4. Operating Segments continued
Other Cte West Nigeria dIvoire Africa US$000s US$000s US$000s Year to December 2010 Sales revenue by origin 286,546 32,568 131 202 319,447 Unallocated Consolidated US$000s US$000s US$000s Eastern Africa

Operating gain/(loss) before derivative financial instruments Derivative financial instruments gains Segment result Investment revenue Finance costs Other gains and losses fair value of financial liabilities Other gains and losses foreign currency losses Share of loss of an associate Profit from continuing operations before tax Income tax expense Profit from continuing operations after tax Loss from discontinued operations Profit for the period

128,053 (3,270) 124,783

(2,583) (5,624) (8,207)

(2,051) (2,051)

(248) (248)

(25,289) (25,289)

97,882 (8,894) 88,988 298 (11,320) (8,100) 305 8,625 78,796 (32,923) 45,873 (614) 45,259

Segment assets non-current Segment assets current Assets held for sale Segment liabilities Capital additions oil and gas assets Capital additions exploration and evaluation Capital additions other Capital disposal other Depletion, depreciation and amortisation Exploration costs write back/(write-off)

805,105 172,251 362,879 59,462 488 (815) (76,708) 370

153,270 15,818 119 1,723 453 (15,668)

68,459 6,107 (5,090) 7,559 (1,984)

192,548 2,046 2,812 (47,967) 192,470 270 (3)

3,675 24,397 (71,314) 2,188 (1,600)

1,223,057 220,619 2,812 (587,773) 362,998 261,214 3,399 (815) (93,979) (1,614)

(352,857) (110,545)

Afren plc | 2011 Half-yearly Results 20

Notes to the Interim Financial Statements (unaudited)

4. Operating Segments continued
Nigeria US$000s Six months to June 2010 Sales revenue by origin Operating loss before derivative financial instruments Derivative financial instruments losses Segment result Investment revenue Finance costs Other gains and losses fair value of financial assets & liabilities Other gains and losses foreign currency gains Share of loss of an associate Profit before tax Income tax expense Profit after tax 197,100 17,650 214,750 Cte dIvoire US$000s Other West Africa US$000s Unallocated US$000s Consolidated US$000s

93,394 (1,538) 91,856

(107) 1,691 1,584

(1,214) (1,214)

(11,092) (11,092)

80,981 153 81,134 237 (6,185) 280 524 (604) 75,386 (24,662) 50,724

Segment assets non-current Segment assets current Segment liabilities Capital additions oil and gas assets Capital additions exploration and evaluation Capital additions other Capital disposal other Depletion, depreciation and amortisation Impairment reversal/(change) on oil and gas assets

557,003 201,155 (244,598) 144,602 19,734 (559) (55,672) 25

161,277 26,826 (119,623) 191 785 22 (8,325)

67,614 8,546 (5,293) 4,729 (1,168)

3,203 111,179 (53,469) 305 (740)

789,097 347,706 (422,983) 144,793 25,248 327 (559) (64,737) (1,143)

Afren plc | 2011 Half-yearly Results 21

Notes to the Interim Financial Statements (unaudited)

5. Senior secured loan notes On 27 January 2011, Afren offered US$450 million aggregate principal amount of its 11.5% senior 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 million) 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 Six months ended Six months 30 June ended 2011 30 June 2010 US$000s US$000s
Energy Investment Holdings Ltd St. John Advisors Ltd STJ Advisors LLP Tzell Travel Group First Hydrocarbon Nigeria Limited

Amounts owed from/(to) related parties

As at 30 June 2011 US$000s 110 (13) 2,241

As at 30 June 2010 US$000s (97) (16)

242 121 1,150 432

244 150 143

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.
Afren plc | 2011 Half-yearly Results 22

Notes to the Interim Financial Statements (unaudited)

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.

Afren plc | 2011 Half-yearly Results 23

Advisors and Company Secretary

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 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

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

Afren plc | 2011 Half-yearly Results 24

Advisors and Company Secretary

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

Afren plc | 2011 Half-yearly Results 25