Afren appoints Alan Linn as the new CEO

The company said the board has agreed in principle with Linn's appointment, who is expected to take up the position after the $300m bailout agreement has been completed. Afren anticipated that the funding deal will occur "imminently".

Linn was the chief executive of the Australian Roc Oil, before it was sold to Chinese Fosun International last August.

Afren saw its share price tumble 99% after it was discovered back in October that its then chief executive, Osman Shahenshah, together with a number of other executives, had accepted hidden payments from a foreign partner. The group has been looking for a new chief executive since then.

Shares were up 8.54% to 3.43p on Tuesday at 13:48.