Ophir's Plans for 2015 Remain on Track

Independent oil and gas firm Ophir Energy reported Monday that its production was on track to meet its expectations for the full year after the company averaged 14,600 barrels of oil equivalent per day during the first half of 2015.

Ophir said its Bualuang field in the Gulf of Thailand contributed 12,600 boepd. Meanwhile, the firm is continuing to advance its Fortuna FLNG project in Equatorial Guinea, West Africa, where its selection of Golar FLNG as the midstream partner for the project is expected to lower capital costs. Here, Ophir said, upstream capital spending to first gas is expected to be approximately $800 million. Upstream and midstream FEED (front-end engineering development) studies are beginning during the current quarter with a final investment decision due in mid-2016 and first gas expected in mid-2019.

The development of the Kerendan Gas Project in Kalimantan, Indonesia, remains on schedule to start delivery 20 million cubic feet of gas per day during the second half of 2015.

As far as Ophir's exploration activities are concerned, in Thailand rig discussions are at an "advanced stage" ahead of a drilling campaign during the second half of this year that will include two exploration wells on the G4/50 license. Meanwhile, the company has recently completed the acquisition of 4,020 square miles of 3D seismic data offshore Myanmar.

Ophir also reported that following its takeover of Salamander Energy in March and the acquisition of the Niko asset package, the integration of these into its business "progressed well" during the first half of 2015. The company's management has implemented a cost rationalization program that is now delivering $60 million per annum in ongoing cost savings and synergies, Ophir added. The firm is in the process of closing five of the 11 offices either owned by the company or inherited at the time of the Salamander acquisition, while the remaining six offices have also been scaled back to reduce costs and improve efficiency.

Ophir said that its balance sheet remains strong, with $720 million of cash on its books at the end of June. Revenue, cash flow and capital expenditure are expected to be in line with expectations during 2015, with cash at year end forecast at between $700 million and $750 million.

Ophir CEO Nick Cooper commented in a company statement: