UK: Ophir Energy Posts 2012 Results

Ophir Energy announced its preliminary results for the full year ended 31 December 2012. 

2012 Financial and Corporate Events

• Successfully completed acquisition of Dominion Petroleum in February 2012;  added assets to Ophir’s portfolio in Tanzania (Block 7) and Kenya (Blocks L-9 and L-15)
• Continued focus on capital discipline; 896 MMBOE of net contingent resources discovered at finding cost of US$0.58/BOE
• Placed 30.5 million shares in April 2012, raising US$242 million to part-finance Ophir’s ongoing exploration programme
• Net cash position at year-end of US$228 million

2012 Operational Milestones  

• Drilled six exploration and two appraisal wells, with 100 per cent success rate
• Increased net contingent resources by 896 MMBOE (377%), from 210 MMBOE to 1.106 BBOE
• Acquired ten new seismic programmes and four new deepwater licenses, covering 13,000km2 and 17,916 km2 respectively; reaffirmed Ophir’s position as sixth largest net acreage holder offshore Africa
• Following acquisition of Dominion, Ophir is now the largest independent oil and gas exploration company in terms of net acreage in the deepwater East African play
• Continued to focus on optimising and rationalising the asset portfolio, acquired Dominion, sold DRC asset and commenced Uganda exit
• Continued to operate to the highest HSE standards; 100% drilling rate with no lost time incidents

Key Operational Events

Tanzania

• Completed a successful three-well exploration programme in Tanzania with JV partner BG Group, with discoveries made with each of the Jodari-1 and Mzia-1 wells in Block 1 and the Papa-1 well in Block 3
• Jodari: 3.4 TCF mean recoverable gas with an upside P10 case of 3.7TCF
• Papa-1: 0.5 – 2.0 TCF of gas in place in Block 3
• Mzia-1: Mean estimate of in-place gas resource increased to 6 TCF
• Total discovered gas in-place resources for Blocks 1, 3 and 4 were increased to 13.5 – 21TCF, meeting the threshold for a two-train LNG development
• In Tanzania, the Joint Venture resumed its drilling in Block 1 with a three-well appraisal programme: Jodari South-1, Jodari South ST-1 (a deviated side-track) and Jodari North 1; Its objective was to confirm the Jodari field as an anchor asset to support Tanzania’s first multi-train LNG development
• Separately, a seismic programme was completed to define drilling prospects for the East Pande Block
• Following the acquisition of Dominion, Block 7 was added to the Tanzania acreage; 2D seismic was acquired on the acreage

Kenya

• Following the acquisition of Dominion, Blocks L-9 and L-15 in were added to the portfolio
• 3D seismic data was acquired on both of these blocks

Gabon

• Undertook a 3D seismic programme across Mbeli and Ntsina licenses designed to identify and define pre-salt targets, plus a second 3D seismic programme across the Manga and Gnondo licenses to define post salt targets

Equatorial Guinea

• Completed a successful three-well drilling campaign in with discoveries at Tonel-1, Fortuna West and Fortuna East
• Tonel 1 (R-4): 814 BCF mean recoverable gas
• Fortuna East-1: 421 BCF mean recoverable gas
• Fortuna West-1: 677 BCF mean recoverable gas
• The Group increased its 2C resource estimate for Block R to 2.3 TCF and reduced the risk on the remaining estimated 10 TCF of inventory

Ghana

• Ophir entered Ghana with a 20% participating interest in the Offshore Accra Contract area and obtained consent to operate

Nick Cooper, CEO of Ophir Energy commented: “2012 has been a successful year for Ophir Energy. The group achieved a 100 per cent success rate with the drill bit across six exploration and two appraisal wells, reaffirming Ophir’s reputation as a leading explorer in Africa.

“The Group’s strategy is to focus on significant, operated equity positions in plays with substantial running room, to fund extensive 3D seismic acquisition, and to partner with leading oil companies to deliver high impact, deepwater drilling programmes.

“We have made good progress over the past year. Ophir is now the sixth largest net acreage holder offshore Africa and has acquired ten 3D seismic programmes in 2012. The Group’s 2012 drilling discovered ca. 896 MMBOE of net contingent resources during the year and the Group’s total discovered resources increased 377% in 2012 to an estimate 1.106 BBOE at year end.

“2013 has the potential to be another exciting year for Ophir, with a 10+ well drilling programme that has the potential to transform the portfolio again.”

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LNG World News Staff, March 05, 2013; Image: Ophir