Ophir Energy Plc announced preliminary results for the year ended 31 December 2013 and its future outlook.
Full Year Results Highlights:
- Announced the divestment of a 20% interest in Blocks 1, 3 and 4 Tanzania to Pavilion Energy for US$1.288 billion. This transaction is now unconditional with all conditions precedent satisfied and is due to complete imminently;
- Added 254mmboe of net contingent resources with a 3 year average finding cost of US$0.90/boe;
- Net loss after tax for the year of US$245.8 million (2012: US$40.7 million) reflecting asset impairments on Block 7, Tanzania and AGC and exploration write-offs in Ghana, Madagascar, Congo and Kenya;
- Strengthened the Company’s financial position by raising US$837.6 million (gross) via the successful March Placing and Rights Issue. Net cash and short-term investments at 31 December 2013 were US$666.7million;
- Executed a successful exploration and appraisal programme in Tanzania Blocks 1, 3 and 4 which included two exploration discoveries, Ngisi (Block 4) and Mkizi (Block 1), and three Drill Stem Tests which confirmed good reservoir deliverability and flow rates at the upper end of expected range. Significantly derisked the two train LNG project which is moving into the pre-development planning phase;
- Made significant progress on commercialising the Company’s Equatorial Guinea gas resources with Floating LNG the preferred development solution;
- Agreed a comprehensive farm-out of the Company’s Gabonese acreage to OMV;
- Extended the rig contract for Deepsea Metro I drillship and secured the Vantage Titanium Explorer drillship under contract to be able to deliver the 2013 and 2014 drilling programmes across both West and East African portfolios;
- High-impact 2014 exploration campaign targeting wells across Tanzania, Gabon and Equatorial Guinea.
Nick Cooper, CEO of Ophir Energy plc commented: “2013 saw the Company continue its operational progress. In Tanzania we added further resource, derisked the discovered gas volumes with appraisal drilling and flow-tests and then partially monetised our position through the transaction with Pavilion Energy. This progress demonstrates the benefits of our strategy of creating shareholder value through the exploration and appraisal phase of the industry investment cycle and then realising that value at the appropriate time. We have entered 2014 well financed to deliver the most extensive exploration programme in the Ophir’s history; targeting wells in Tanzania, Gabon and Equatorial Guinea. This programme will include several new plays, which, if successful, have significant follow on potential beyond any initial discovery.”