Ophir Energy posts USD 339.1 mln profit

Ophir Energy said its net profit after tax was US$339.1 million in the first half of this year, compared to a US$19.4 million loss for the same period in 2013.

Total cash balances and short-term investments as at 30 June 2014 were US$1,490.8 million (US$839.1 million in 2013).

Nicholas Smith, Chairman of Ophir Energy said: “The highlight in the first half of 2014 was the completion of our transaction in Tanzania with Pavilion Energy. This was the culmination of several years of hard work by the Company and is testament to Ophir’s strategy of monetising exploration success in a timely manner. The proceeds from the deal leave the Company well financed through 2015. After assessing our near-term capital needs and, in the opinion of the Board, with our shares trading below the core value of the business, a capital return to shareholders has been approved via a share buyback programme announced today.”

“Our Floating LNG project in Equatorial Guinea continues to make good progress and we hope to give further updates later in 2014 as we confirm selection of the Midstream consortium, agree gas terms and complete this year’s drilling campaign. As with our Tanzanian transaction, our intent is to monetise at the point of optimum returns to shareholders. Whilst the recent drilling programme in Gabon was disappointing, we remain committed to offering shareholders exposure to a diverse portfolio of exploration prospects and plays, acknowledging that exploration is a high-risk activity. Ophir’s drilling programme continues at a pace, after drilling four wells in the first half of 2014 we are undertaking a further five wells plus two flow tests in the second half of the year. Our New Ventures activity has secured acreage in Myanmar and the Seychelles and further additions are being progressed,” added Smith.

Press Release, August 14, 2014; Image: Ophir Energy