24th Oct 2013 09:50
LONDON (Alliance News) - Ophir Energy PLC shares jumped 8% Thursday as the company said it has a process ongoing to sell down part interest in its Blocks 1, 3 and 4 in Tanzania
The FTSE 250 gas-exploration company, operating in Africa, announced the decision following media speculation. It had said on October 2 that due to the early completion of its testing at the Pweza-3 appraisal well the company will be able to dramatically reduce the number of development wells required in Block 4, to simplify its development plan.
The recent flow test at Block-4 found an equipment-constrained flow-rate of 57 million standard cubic feet per day with no observable depletion after 5 days. The company said it expects the implied unconstrained flow rate to be over 150 million standard cubic feet per day.
At the moment Ophir holds a 40% stake in Block 1, 3 and 4, whilst BG Group PLC is the operator with a 60% share.
Ophir Energy said there is no certainty that this process will conclude successfully nor can there be any certainty over the value of any such deal if it were to complete one.
Ophir Energy shares were up 8.7% to 325.30 pence, making it the top FTSE 250 mover Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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