Full Year Results Highlights:
- Completed the divestment of a 20% interest in Blocks 1, 3 and 4, Tanzania to Pavilion Energy for $1.288 billion* (pre-tax)
- Cash and cash investments of $1.17 billion** as at 31 December 2014 (2013: $667 million)
- Total net contingent resource of 1,031 mmboe at end 2014 – after resources divested to Pavilion and added through the drill bit (2013: 1,256 mmboe)
- Three-year average total finding cost*** of $1.34/boe (2013: $0.89/boe)
- Post tax profit of $54.8 million (2013: $245.8 million loss)
- Drilled 11 exploration and appraisal wells in 2014, six of which were successful
- More than doubled exploration acreage with no firm well commitments through addition of new licences in Gabon, Indonesia, Myanmar and the Seychelles
- Progressed with the Floating LNG project in Equatorial Guinea, having flowed hydrocarbons to surface at an implied rate of 180 MMscfd and amended fiscal terms
Nick Cooper, CEO of Ophir Energy plc commented
“We continued to drive the business forward in 2014, completing the Pavilion transaction, proving up more resource, and taking the first steps towards a sustainable financing strategy with the acquisition of Salamander Energy which brings low break even production (completed March 2015).
We have responded to the current oil price environment by identifying and actioning $250 million of budget savings and capex reductions over the next two years. However, there is a unique opportunity at the moment to acquire exploration acreage at low cost and with minimal work commitments. Ophir has doubled its exploration footprint during 2014 but only has $100 million of committed E&A spending in the portfolio between now and 2017. We are able to offer investors unique access to a high class exploration portfolio where only the prospects that offer the best potential returns are drilled.”
*Includes $38 million contingent payable at FID.
**Includes £294.9 million of short-term investments
***Defined as expenditure on exploration and appraisal activity divided by contingent resources added in the year
A presentation for analysts will be held at 10.30am following this announcement. This will be webcast live through the link on the Company website: www.ophir-energy.com/investors. A conference call facility is also available.
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Press release is available to download