Commenting on the results, Nick Cooper, Chief Executive Officer, Ophir Energy said:
“2016 saw Ophir adopt the simple maxim “find low, monetise smartly”. Our decision to re-orient the Group’s activities around net asset value per share has changed our corporate mindset. All activities are now focused on finding or developing hydrocarbons at the lowest cost and monetising promptly and swiftly; thereby maximising the margin realised for shareholders. In 2016, Ophir delivered the start-up of the Kerendan gas field, we advanced the Fortuna FLNG project towards FID and significantly reduced our G&A cost (for a third year running).
“We are looking for 2017 to deliver material milestones. A green light for Fortuna, expected in mid-2017, will unlock 345 MMboe for monetisation. Subject to the volume of gas we choose to term up, this could treble our Group 2P reserves in the process. Plans to sweat our Asian assets have the potential to monetise up to a further 80 MMboe over the next three years.
“At the same time, Ophir will be resuming operated exploration and the Ayame-IX well in Côte d’Ivoire is expected to spud in May 2017. With production, development and exploration programmes gathering pace, Ophir is moving towards our ambition of being a sustainable explorer.”
- Revenue of $107 million (2015: $178 million) with a further $15 million (2015: $17 million) for Sinphuhorm accounted for using the equity method
- Cash generated from operations of $62 million(1) (2015: $113 million)
- Cash on the balance sheet of $360 million (2015: $615 million, including short-term cash deposits)
- Net cash on balance sheet of $160 million` (2015: $355 million)
- Achieved a further 35% reduction in net G&A costs
Monetisation of Resource
- Reached agreement with OneLNG to form a Joint Venture that will facilitate the development of the Fortuna gas field, Equatorial Guinea, with FID expected during mid-2017, monetising 345 MMboe
- Worked over 1.8 million man hours incident free
- Achieved 99.6% production uptime, leading to average daily production of 10,800 boepd (including Sinphuhorm), in line with expectations
- Completed a produced water debottlenecking project on the Bualuang field, Thailand
- Expansion of Kerendan asset approved by Indonesian authorities
- Ayame-1X exploration well in Cote d’Ivoire matured to drill-ready and will spud in 2Q 2017, targeting 234 MMbo of gross mean prospective resource
- Added 158 MMboe of risked, drill-ready, prospective resource to the prospect inventory
- Completed the Trepang 3D seismic survey in West Papua IV/Aru licences in Indonesia and matured a number of prospects to drill-ready
- Commenced an onshore 3D seismic programme in Greater Kerendan area with a view to expanding this asset
- Entered Mexico with a successful bid for Block 5 in the Mexico deepwater licensing round
(1) See Financial Review Sources and uses of funds summary table
A presentation for analysts will be held at 10.30am this morning. This will be webcast live through the link on the Company website: www.ophir-energy.com/investors.
Press release is available to download