Africa-focused Ophir Energy reported Monday that it has completed the sale of a 20-percent interest in its Blocks 1, 3 and 4 in Tanzania to Pavilion Energy.
Ophir said it has received cash of $1.26 billion and that a further $38 million is payable following the final investment decision in respect of the development of the blocks that is expected in 2016.
Ophir said that the proceeds from the transaction will support its plans that include investing in a number of new opportunities that are under consideration and have transformational growth potential. The firm added that the new funds will also give it the flexibility to rapidly capitalize on any exploration success from its current drilling program.
Ophir CEO Nick Cooper commented in a company statement:
"We are delighted to welcome Pavilion Energy into the Tanzanian LNG development across Blocks 1, 3 and 4. The partial monetization of our interests is in keeping with Ophir's strategy of minimizing exposure to development capex and realizing the value created from exploration success at the appropriate time."
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