11th Jun 2015 07:18
LONDON (Alliance News) - Ophir Energy PLC saw its shares rise early Thursday after it said a new independent reserves report had confirmed its has over 1 billion barrels of oil equivalent in its reserves, which it claimed is one of the largest in the European mid-cap sector.
The independent reserves and resources reports support its previous management estimates, the company said, with combined net 2P and 2C resources as at the end of 2014 at over 1 billion barrels of oil equivalent. This is split between certified net proven and probable reserves, its 2P reserves, of 59.6 million barrels of oil equivalent, and certified best estimate of contingent resources, its 2C reserves, of 950.0 million barrels of oil equivalent.
Ophir said its daily production averaged about 15,500 barrels of oil equivalent a day in the first quarter of 2015.
"The updated reserves and resources certification highlights the long life nature of our producing assets which will generate material cash flow to fund our exploration objectives. We have plans to convert a substantial portion of our 2C resource base to 2P in the next 12 months," Ophir Chief Operating Officer Bill Higgs said.
"This contingent resource base provides line of sight on a production profile that, if we maintain current equity interests, would see over 40% of the contingent resources on-stream and group production at about 65,000 barrels of oil equivalent per day in 2020," he added.
The update was noted by Salamander Energy PLC, which Ophir is acquiring in an all-share deal.
"We have delivered steady average production for the first quarter of 2015 and production has continued to be reliable during the integration of the Salamander assets into Ophir," Higgs said.
Ophir Energy shares were up 1.9% at 130.89 pence early Thursday, one of the best performing stocks in the FTSE 250.
By Steve McGrath; [email protected]; @stevemcgrath1
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