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UPDATE - Afren settles with former CEO and COO

Last updated: 15:37 02 Jan 2015 GMT, First published: 16:37 02 Jan 2015 GMT

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Peace has broken out at Afren (LON:AFR) between the former chief executive officer (CEO) and chief operating officer (COO) and the current Afren board.

Former CEO, Osman Shahenshah, and former COO, Shahid Ullah, have jointly made a cash payment of US$17.1mln in relation to payments made to them that were not authorised by the board, as per the company's announcement at the end of July 2014.

On top of that, the company has received US$3mln to cover the costs of the investigation into the unauthorised payments.

Shahenshah and Ullah have also granted a non-competition covenant in favour of Afren.

On the other side of the coin, Afren has agreed to drop its legal case against Shahenshah and Ullah.

Shares in Afren lost almost three quarters of their value last year, with the decline gaining impetus after the ousting of Shahenshah and Ullah.

The mid-cap oiler also had to deal with events in Kurdistan affecting production at its assets.

Towards the end of the year, the company received a takeover approach from Nigerian oil company SEPLAT Petroleum Development Company.

Afren shares eased 3.87% to 45.45p.

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