27th Oct 2014 08:08
LONDON (Alliance News) - Ophir Energy PLC on Monday said it has entered a deal to buy seven deepwater production sharing contracts in Indonesia from Niko Resources, expanding its South East Asia presence.
Under the deal, Ophir will pay USD31.3 million for interests in the seven contracts, six of which it will operate itself. It will pay the initial consideration in cash, with further payments dependent on exploration success.
Drilling activity on the contracts is due to start in 2016, Ophir said.
Following the acquisition, Ophir said the new contracts will expand its total gross licensed acreage by 40%.
"This deal represents a significant reloading of the company's exploration portfolio, expanding our gross acreage by 40% and in combination with Ophir's recent Myanmar PSC award, positions Ophir as a leading deepwater Asian explorer. We look forward to delivering a number of high impact wells from this new Asian portfolio as well from our existing African assets in the coming years," said Ophir Chief Executive Officer Nick Cooper.
Shares in Ophir were up 0.9% to 204.475 pence early Monday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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