15th Jan 2019 09:30
LONDON (Alliance News) - Ophir Energy PLC said Tuesday that it expects a substantial increase in average production for 2018 due to the integration of South East Asian assets acquired from Australian firm Santos Ltd.
The oil and gas company, which is facing a takeover bid from Jakarta-listed energy company PT Medco Energi Internasional Tbk, said that 2018 average production on a proforma basis is estimated at 29,700 barrels of oil equivalent per day, 8% ahead of guidance, with operating expense per barrel of USD12.
In September, Ophir acquired a bundle of assets in south-east Asia from Santos for USD205 million. The deal saw production assets in Vietnam and Indonesia and exploration assets in Malaysia, Vietnam and Bangladesh join the company's portfolio.
Capital and investment expenditure for 2018 is expected below Ophir's USD145 million guidance at USD122 million, while the company cash balance is set to be USD323 million.
For 2019, Ophir forecasts operating expense per barrel to be USD16, up from 2018 due to workover drilling on the Kerendan field. Capital expenditure is expected to be at USD150 million, while cash balances for 2019 is forecast at USD230 million.
Daily production in 2019 is expected to be line with the company's guidance at 25,000 barrels of oil equivalents per day.
On Monday, Ophir rejected the takeover offer from Medco Energi, which valued the UK-listed company at GBP343 million. Ophir said it met formally to considered the 48.5 pence per share offer and rejected as it undervalued the company.
Shares in Ophir Energy were down 0.8% at 44.80 pence each on Tuesday.
Related Shares:
OPHR.L