UK: Ophir Reports Good Progress in H1

Ophir Energy plc provided an Interim Management Statement and Operational Update for the period 1 January 2013 to 16 May 2013.

Corporate Highlights:

• End April 2013 cash balance of $891.0MM
• Significantly strengthened the company’s financial position by raising proceeds of $832.7 million via a Placing and Rights Issue to further progress the Group’s strategy
• Material operational progress across the portfolio with increase of Jodari and Mzia field recoverable resources and the completion of Mzia-2 appraisal programme
• Appointment of three new Board directors

Key Operational Events:

Tanzania

• Extended contract with Odfell Drilling for Deepsea Metro I drillship with partner BG Group plc for a period of at least 18 months for the continuation of the 2013-2014 East African offshore drilling programme
• Carried out successful Mzia-2 Drill Stem Test on Block 1 Tanzania confirming flow rate at upper limit of the expected range at 57mmscf/d; Completion of the Mzia-2 appraisal programme has validated the field’s resource potential and confirmed expectation of excellent development well productivity
• Increased Jodari field mean recoverable resource estimate by 700 BCF to 4.1 TCF following successful appraisal programme and Drill Stem Test
• Increased Mzia field mean recoverable resource estimate by 1.0 TCF to 4.5 TCF following successful appraisal and testing programme
• Spudded the Ngisi-1 exploration well in Block 4 with the aim of increasing the mean in-place resource of the Chewa-Pweza-Ngisi hub to 5.8TCF in place (4.1 TCF mean recoverable)
• Commenced new 3D seismic acquisition programme inboard Block 1. Continued evaluation of the Block 1 outboard exploration potential

Ghana

• Awarded contract for Stana DrillMAX, Dual Derrick Drillship (Stena) to drill the Starfish-1 well in the Offshore Accra Block in Ghana
• Well spud expected in June on the Starfish prospect with Ophir management estimated mean prospective resources of 292 MMBBL with a 20% chance of success

Nick Cooper, CEO of Ophir Energy plc commented: “We have seen considerable operational and financial progress in the first half of 2013, both via the drill bit and through the support for the successful March 2013 Placing and Rights Issue.

“The results of the Mzia-2 appraisal programme represented a key step towards achieving Tanzania’s first LNG development project and we await the results of the Ngisi-1 exploration well in June. We are looking forward to an exciting second half of 2013, with further drilling of up to five wells across Blocks 1, 4, and 7 in Tanzania and in the Offshore Accra Block in Ghana.”

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LNG World News Staff, May 16, 2013; Image: Ophir