Who we are
Ophir Energy is an independent Upstream oil and gas exploration and production company focused on Asia and Africa. Ophir creates value by finding resources and then monetising them at the appropriate time.
Ophir’s vision is to be the leading independent international oil and gas exploration and production company.
Ophir’s model for value creation is through the exploration and appraisal phases of the E&P cycle; and through monetising assets at the appropriate time to capture optimum value for shareholders. Our job is to find resources for the minimal capital outlay and then to monetise them for the highest possible price.
In 2014 we took the decision, in consultation with major shareholders, to move towards sustainability. A key part of this financing model is the addition of production assets which generate cash flow to fund exploration and appraisal activity. The acquisition of Salamander Energy in March 2015 was the first step towards achieving this goal.
Our strategy has three key components:
- Value creation through exploration
- Active portfolio management
- Disciplined approach to capital allocation and returns
The sale of a 20% interest Blocks 1, 3 and 4 in Tanzania to Pavilion Energy is an example of the first two elements of this strategy. It demonstrated the ability of the Company both to find resource and monetise it, in this case creating a return on investment of 4.5x.
Interest in Blocks 1, 3 and 4 in Tanzania sold to Pavilion Energy
Return on investment in Tanzania
A proportion of the funds generated by this transaction have enabled us to act counter-cyclically adding new exploration acreage to the portfolio, with a low level of commitment spending, that provide a series of options for future drilling. We also exited a number of licences that did not have the potential to deliver material returns to shareholders in the near term.
The acquisition of Salamander Energy completed in March 2015. This diversifies our source of funding through the addition of cash flow, and also by adding a prudent level of debt to the balance sheet.
Finally, we maintain extreme discipline in capital allocation. Every dollar we spend must have the potential to deliver a significant return to shareholders in a low oil price environment