ERHC Energy Inc (ERHE)

[Southern Man]

Seplat Petroleum Development Co. (SEPL), a Nigerian oil producer that made last month an approach to combine with U.K. explorer Afren Plc (AFR), won an extension for the deadline to say if it plans a firm offer.

Afren received consent for the extension to Jan. 30 from the U.K. Takeover Panel after Seplat’s request to continue their ongoing discussions, the London-based oil explorer said in a statement on Monday. “There can be no certainty that an offer will be made or as to the terms of any offer.” Seplat had until today to decide on making an offer or walk away.

Seplat produces about 70,000 barrels of oil a day at three Nigerian fields, in which it owns a 45 percent working interest. Afren said on Dec. 22 that Seplat made a “highly preliminary” approach for a merger.

Afren was among those producers identified by BMO Capital Markets analysts in November as potential takeover targets as oil slumped by more than 50 percent to trade below $50 a barrel.

Afren plans to produce 32,000 barrels to 36,000 barrels of oil a day mainly from Nigeria, it said in November. First production may come from the Okoro and Okwok prospects this year.