Medco in Ophir takeover talks

London-based Ophir Energy said it has entered talks with Medco regarding the latter’s potential purchase of Ophir’s issued and to be issued share capital. 

However, Ophir noted that there is no certainty a cash offer will be made, nor is there a decision on which terms the offer could be made.

Ophir said in its statement that Medco has until January 28, to either show intention to make an offer for Ophir.

Citing analysts, Reuters reports the move is seen as Medco’s attempt of evolving into an international player.

In September last year, Ophir voiced its intentions to move its headquarters to Asia to further cut its costs. The company is still looking to develop its Fortuna FLNG development within the Block R license, offshore Equatorial Guinea which is located in the south-eastern part of the Niger Delta complex.

The company is yet to reach a final investment decision on the project, and the company is still awaiting a response from the Equatorial Guinea ministry of mines and hydrocarbons on its request to extend the Block R license.

“We continue to engage with the MMH as well as potential investors in the Fortuna Development.  We expect to receive further communication from the MMH in January concerning either the lapse of the license or the terms of any extension,” Ophir said.

Neither Medco nor Ophir revealed any of the financial details of the potential transaction with Ophir saying further information will be provided ‘when appropriate.’

LNG World News Staff