Ophir Energy Plc Operational Update (4435F)
May 17 2017 - 7:54AM
UK Regulatory
TIDMOPHR
RNS Number : 4435F
Ophir Energy Plc
17 May 2017
17 May 2017
Ophir Energy plc
("Ophir")
Operational Update
Ophir provides the following operational update on the Bualuang
Field ahead of its Annual General Meeting today.
Phase IV Development Sanctioned
A Final Investment Decision has been taken to commence the
fourth phase of development on the Bualuang Oil Field in the Gulf
of Thailand. The total investment is forecast to be US$145 million
from now until 2020 and is expected to deliver NAV growth of
upwards of US$50 million (NPV10) representing an unlevered IRR of
40+%. The development will consist of a 12 slot bridge-linked
wellhead structure with additional power generation. It will
include the drilling of up to 14 wells and an expansion of the
water disposal capacity on the Bravo platform.
ERC Equipoise, Ophir's reserves auditors, have provided a letter
of comfort to the Board that forecasts that the development will
convert 9.2mmbo of contingent resources to reserves. First oil
expected in the second half of 2018.
Through a combination of additional debt leverage and the Thai
fiscal terms, the project is expected to start delivering
cumulative positive cash flows from the start of 2019.
Under the company's remuneration scheme this FID decision is
classified as a NAV event as it is progress towards monetisation of
an asset. While this event itself increases Ophir's NAV toward the
benchmark(1) , it does not of itself trigger a remuneration reward
to staff.
2017 Infill Drilling Programme
The Vantage Drilling Topaz Driller jack up rig is on location at
the Bualuang field and has commenced operations on the 2017 infill
drilling programme. This programme consists of two development
wells and one well targeting untested prospective resources in a
near-field step-out location. Abandoned well stock is to be
recycled to target the three new locations with the goal of the
development wells growing production by around 1,400 bopd. The cost
of these development wells will be c. US$12 million and is expected
to add US$23 million to the NPV of the project and payback within
12 months. Production year to date from the field is averaging
8,100 bopd.
Nick Cooper, CEO of Ophir Energy commented: "Bualuang is a
reliable, low cost, cash generative asset. Phase 4 is a great
opportunity to grow NAV per share through the monetisation of
additional resource with quick paybacks and a healthy IRR."
(1) The opening benchmark was set on 1.1.16 and the NAV is
comprised of the net cash on the balance sheet less one year of net
G&A, NPV10 of the cash flows from 2P reserves, NPV10 of cash
flows forecast from assets post FID (risked at 80%), value
attributed to Tanzania and Equatorial Guinea assets equal to
capital expenditure since the sale of equity in Tanzania to
Pavilion in March 2014
For further enquiries please contact:
Ophir Energy plc + 44 (0) 20 7811 2400
Nick Cooper, CEO
Tony Rouse, CFO
Geoff Callow, Head of IR and Corporate Communications
Brunswick (PR Adviser to Ophir) +44 (0)20 7404 5959
Patrick Handley
Wendel Verbeek
About Ophir:
Ophir Energy is an independent Upstream oil and gas exploration
and production company focused on Africa and Asia. It is listed on
the London Stock Exchange.
This information is provided by RNS
The company news service from the London Stock Exchange
END
UPDLLFSFEEIDLID
(END) Dow Jones Newswires
May 17, 2017 08:54 ET (12:54 GMT)
Ophir Energy (LSE:OPHR)
Historical Stock Chart
From Apr 2024 to May 2024
Ophir Energy (LSE:OPHR)
Historical Stock Chart
From May 2023 to May 2024