Ophir Energy plc (Ophir) is the UK incorporated holding company of a group of companies (the Group) with oil and gas exploration assets in a number of African locations. The Group's headquarters are located in London (England), with operational offices in Perth (Australia), Malabo (Equatorial Guinea) and Dar es Salaam/Mtwara (Tanzania).
Since its foundation in 2004, the Company has acquired an extensive portfolio of exploration interests consisting of 17 projects in nine jurisdictions in Africa. The majority of these interests lie offshore in water depths greater than 250m and are thus classified as "deepwater". According to IHS Inc. (IHS), one of the leading providers of oil and gas licensing data and intelligence, the Company was, as at January 2010, one of the top five holders of deepwater exploration acreage in Africa in terms of net area and Management believes that it has established a strong competitive position in a region that is becoming increasingly significant to global oil and gas markets. According to the IHS Probe database (January 2010) Ophir had just under 60,000km2 of net deepwater acreage in Africa.
Key Strengths
Large portfolio in an area of strategic importance
- Management believes that growing levels of competition to secure access to African oil and gas reserves reflects the increasing strategic importance of Africa as an energy producer.
- Management believes that oil produced in Africa has transportation advantages (in terms of both cost and security) over oil produced in many non-OECD areas and that oil from sub-Saharan Africa is generally well suited to gasoline production, being light and low in sulphur.
Experienced and motivated management team
- Management has extensive technical knowledge and understanding of the oil and gas industry, particularly in Africa, gained during careers working with a diverse range of oil and gas companies.
Strong relationships in Africa
- The Company enjoys a depth of contacts and relationships with governments and oil and gas industry participants throughout Africa and beyond.
- By virtue of its relationships and track record, Management believes the Company has a competitive advantage in securing and developing oil and gas projects within Africa.
Multiple prospects
- Management believes that the number and scale of prospects in the Company's assets means there are multiple chances of exploration success.
Diversified jurisdictional and geological settings
- The Company has acquired a diversified portfolio of interests spread across different jurisdictions and geological settings. This results in a spread of both jurisdictional and geological risks.
Sufficient scale and presence to become a leading African independent company and consolidator
- Management believes that the nature and scale of the Company's portfolio is such that one or more exploration successes could result in the Company becoming a leading African independent oil company. Management also believes that there will be ongoing opportunities to acquire companies with complementary exploration and production assets that might benefit from the synergies and cost savings of being part of a larger group.
Control over expenditure and activity
- The Company typically seeks to retain a high level of equity interests in the early stages of projects that it acquires as Operator. This gives the Company a degree of control over the quantum and timing of expenditure as well as providing the flexibility to farm out a portion of its equity interests in exchange for a promoted carry, therefore reducing the Company's share of future costs should it choose to do so.
- The Company also retains a degree of control over the pace and direction of exploration activity affording it the flexibility to follow up rapidly any exploration success that it might have.
Strategy
Ophir was established with the intention of creating a preeminent independent African energy company. The Group intends to do this by:
- Utilising its connections and relationships in Africa.
- Decreasing exploration risk through the recruitment and retention of an experienced and motivated group of senior staff and the application of advanced geoscience technology.
- Retaining control over the pace and direction of exploration by, wherever practical, being the Operator of projects in which it has an interest or through significant equity interests and contractual terms of joint ventures.
- Active portfolio management.
Expanding its portfolio through investing in new ventures
Securing access to and utilising the Company's existing access to deepwater drilling equipment and any other rigs that might be available to evaluate the potential of its assets.
Adopting a "plan for success" approach with capacity to rapidly redeploy drilling resources for follow up and appraisal drilling in the event of a discovery during exploration or appraisal drilling activities.
Participating to the extent appropriate in the development of its resources with a view to establishing Ophir as a major oil and/or gas producer.
Expanding the Group's portfolio beyond Africa and exploration assets.
Ophir is an oil and gas exploration and production company established in 2004 with a focus upon Africa.
Ophir aspires to be a preeminent independent African energy company.
Ophir's current strategy is to focus upon:
- Early stage exploration projects in frontier basins and "neglected" parts of proven basins.
- More mature projects with proven or probable reserves where the application of innovative geoscience technology can add significant value.
- Collaborative projects with Governments and/or National Oil Companies.
Ophir's experienced management and staff have been involved in a series of major discoveries offshore Africa and have a proven ability to add value to projects through the application of innovative geoscience and commercial deal making.
Previously, as founders and management of London-listed Fusion Oil & Gas plc, a large part of the Ophir team were instrumental in a series of major discoveries offshore Mauritania and had interests in six other West African countries. The Company therefore enjoys a continuity of existing relationships and experience in Africa that has been enhanced through the appointment of additional senior management and through the connections of its shareholders.
Notwithstanding the focus upon Africa, Ophir is an African energy company and not just an energy company in Africa. The Company has evaluated, and continues to evaluate, projects in the Middle East and Central Asia and considers projects of merit to its shareholders irrespective of geography.