UPDATE 1-Afren establishes Nigerian firm, shares jump
* New firm set up to buy substantial oil and gas assets
* Shares rise as much as 12 percent to nine-month high
(Adds details)
LONDON, July 3 (Reuters) - Afren Plc (AFRE.L: Quote, Profile, Research) said on Friday it has established a Nigerian subsidiary that will enable it to acquire substantial oil and gas assets in the country, pushing its shares higher.
Shares in Afren were up 6.1 percent at 60.75 pence at 0916 GMT. They earlier rose as much as 12 percent to a nine-month high of 64 pence.
The subsidiary, First Hydrocarbon Nigeria Co Ltd (FHN), has been created in response to the country's objective of raising local participation in the oil and gas sector.
"Nigeria holds 77 percent of Africa's proven oil reserves and is fundamental to Afren's future," said Evolution Securities in a note. Setting up the new company means Afren will no longer have to partner with indigenous companies, it added.
More than 70 percent of Afren's existing reserves and production is from Nigeria.
(Reporting by Julie Crust; Editing by Ben Deighton)
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