Prime Markets has labelled Africa-focused oil and gas group Afren as a 'buy', saying that the business has a 'very bright future' if Monday's trading update is anything to go by.

The company reported that net production averaged a record 42,830 barrels of oil equivalents per day in 2012, in line with guidance.

Meanwhile, it said that it would report record sales revenues of $1.5bn for last year, up 151% year-on-year.

Head of Dealing Richard Curr said: "A 151% increase in sales revenue is a jaw dropping number by any standards, and as this comes from a company that is well run and well regarded in the City, one can almost here the analysts sharpening pencils for the almost inevitable raft of upgrades.

"The icing on the cake for Prime Markets is the incredibly bullish technical picture, with triple support lines all within a few pence of each other, which suggests a very firm floor in the stock at current levels, and more than enough to launch a retest of 150p year highs and beyond."

Shares were up 2.0% at 137.7p by 11:11.

BC

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