Our production assets are worthless for any sale this year, all we have is whats in the ground and whatever discount to what its worth in a sale.
We're not Exxon or CNOOC so come December the E/G gov. may well just move on from Ophir leaving any joint ventures null and void imagine what we're worth then.
Mexico looks good but may come too late...
NC leaving says it all, but we'll know in around 6 months time for sure.
I've added to my position at 68. There's a messy, but potentially nicely bullish bottoming pattern with a breakout suggesting that 75 is possible soon. Price is also challenging the daily descending trendline resistance. A close above 68 would be a bullish sign to me.
Nick and team generated a huge amount of value for Ophir shareholders. His efforts and theirs should be applauded. I wonderful success story.
However... after pocketing close to a billion on Tanzania 'part' sale, Nick and team went on an exploration phase which delivered duster after duster. EG being the exception. The salamander acquisition was poorly timed and over priced. All the good work gradually wasted. Tanzania asset alone is worth more than market cap but Nick and team were handcuffed on that due to Shell/BG and Tanzanian gov woes.
I'm not sure HICk's departure is going to help too much as the bulk of management under his reign are still very much there. But if it means that there is one more vote on the board that swings a deal in various directions, then sobeit.
The danger now is that Nick's head on a platter is the price that has been paid for a 'failed' Fortuna deal. He had long enough to secure a deal and told the market is was imminent on several occasions.
It's possible that Golar and others involved just want the entire asset lock stock and barrel but getting this done via M&A is nigh impossible without a full takeover as EG would be Ophir's main asset as Tanzanian assets are devalued by Shell to help with BG taz case.
Ophir cannot be sold lock stock and barrel as a fair price for Tanzania cannot be determined. However, should Shell be the potential purchases of Ophir... then there are clear benefits for them. They can write down the Tanzanian asset value while adding a premium for EG. A sneaky way to save millions in tax on Tanzania gov whilst also acquiring a very tasty EG development.
Which is nuts given they are sitting on approximately 1 billion barrels in oil and oil equivalents and the industry is on the up again.
It can all change pretty quickly though, we just a finance guy to get the Fortuna deal sorted, the sooner the better.
....would someone please hang a large For Sale board over this company,
Amusingly, over on the other boards, people saw a hug uptick in the price coming - Nope, it plummeted and the nightmare which is Ophr, drags on..
Hope the new man gets this finance for Fortuna done quickly
18 May 2018
Ophir Energy plc
("Ophir" or the "Company")
Nick Cooper to Step Down as Chief Executive Officer
The Board of Ophir (the "Board") announces that, by mutual agreement, Dr Nicholas (Nick) Cooper the current Chief Executive Officer and Executive Director, has stepped down from the Board with immediate effect. Nick will remain an employee of the Company at this time and will be leaving the Company after a short handover period. Mr Alan Booth, currently a non-executive director of the Company, has been appointed as Interim Chief Executive Officer and Executive Director, until a new Chief Executive Officer is appointed.
Nick's achievements while Chief Executive Officer have been considerable and include leading the Company through a successful IPO in 2011, realising value through selling part of its interest in Tanzania in 2013, the acquisition of Salamander in 2015 and, most recently, the proposed acquisition of Santos' South East Asian assets. Under Nick's leadership, the Company has evolved from being a frontier deepwater explorer to a financially strong business supported by a robust production base.
This decision to appoint a new Chief Executive Officer reflects the Company's ongoing move to rebalance its portfolio towards a larger production and cash flow base, to support more focussed and sustainable exploration activity.
The recently announced Santos acquisition is an important step in this direction. The Board will strengthen management operational capabilities to deliver this strategy, alongside continuing its plans to realise value from Ophir's substantial discovered gas resources. The Board continues to focus on realising value for shareholders from the Fortuna Project, and will continue to work with the Government of Equatorial Guinea to develop this important resource.
Commenting, Bill Schrader, Chairman of Ophir, said:
"On behalf of the Board, I would like to thank Nick very much for his service to the Company. Nick was appointed CEO in 2011 when Ophir was a frontier explorer. Today, we have a production-focussed business model, exemplified by the proposed Santos transaction. This positions the company well for the future and provides a great platform to Nick's successor. We wish Nick all the very best for the future. In Alan Booth, we have an excellent Interim CEO with the relevant operational experience."
Nick Cooper said:
"I have thoroughly enjoyed my seven years at Ophir and am proud of what we have achieved together. Ophir has transformed from a high risk, frontier explorer to a sustainable, balanced, upstream company. A solid platform has been built for new leadership to take the Company forward. I wish the staff, Board and shareholders of Ophir all the very best for the future."
Background on Alan Booth
A geoscientist by background, Mr Alan Booth was, until 2005, Managing Director of EnCana UK Ltd with bottom line accountability for EnCana's UK business. From a standing start in 1997 as a new UKCS entrant Alan was responsible for both building and leading an effective operating and exploration team that acquired an initial UKCS production base in the Scott and Telford fields from BP in 1999, later becoming a production Operator following the purchase of Hess' interests in the field. In 2001 EnCana discovered and subsequently developed the 220kbbls/day, 800 million bbl Buzzard Field, eventually selling EnCana UK Ltd to Nexen Corporation for $2.1 billion in 2005.
Following the sale of EnCana UK, Alan and a number of his former colleagues established a new company, EnCore Oil Limited, eventually listing on AIM in 2006. EnCore was subsequently involved in a number of commercial discoveries, most notably in 2010 the EnCore operated Catcher Area Fields, and in 2012 the company was sold to Premier Oil in a cash or share alternative transaction, which valued EnCore at £265 million. Alan has been a Non
I've increased my position today at around 66. It'll be interesting to see what happens at around 68 which is currently the price of the descending tl resistance. I'm hopefull that it will break through that and head up to 75/76 area.
frustrating news, i'm sure after the initial delay you pointed out Schlumberger maybe wanted a bigger piece of the pie which makes sense as you don't have a mkt cap around $100bn by not getting your own way.
Something has to give, finance sorted, sell, smaller piece of the pie, run out of time, run out of cash...this deal would give the company a solid footing in the sector going forward but its tough out there.
Morning CH, you did call it, is this down to Schlumberger who have previous form do you think?
It really is a trifling sum in the world of oil and gas so Nick needs to come clean and name names or get it done.
A warning shot across the bows if ever there was one.
What a shambles, they've done all the hard work and have a world class asset ready to go but a piddling $1.2 billion is the hold up.
It's chicken feed given the asset.
"Equatorial Guinea will force Ophir Energy out of the companys flagship liquefied natural gas project and may scrap it entirely unless long-delayed financing deals worth $1.2 billion are presented to the government by December. The ultimatum is a blow to UK-listed Ophir, which has set aside $150 million...of mines and hydrocarbons, told Reuters. Ophir declined to comment. Ophirs licence to the gas fields in offshore Block R expires in December."
Just got my computers back on line after frying every circuit breaker in my house. Going off grid is great until you get a surge, sorted now though.
Was perplexed by your ' So for Ophir if we stay range bound 52-65 for a while and then break out. i'll engage.' We have been in that range now for more than 4 months and you would like to see us bounce around a bit longer. Why ? Do we need to, is that a pre curser for our next leg up. I enjoy your and shot's analysis (nothing like a bit of TA dirty talk). Still learning and starting to enjoy looking at charts but I'm that busy now I never have enough time to really get stuck in.
News does not seem to shift OPH's sp at all now even though we produce and are acquiring assets. On a TA viewpoint, what's going to push us through to a breakout and what's your new range once we do. IF we do.
I'm off to Accra shortly to look at some big machines, would be nice to see some movement here before I go, but I am not holding my breath.
We really need to get that drill-bit turning again and sign that 'monkey on our back finance deal'.
Not sure the type of strategy you follow Shotry but I like the chart a lot more if we saw a bit of consolidation phase . say 1 to 3 months bouncing in a rectangle . We may be in that phase now
Then depending on the length and height I like a clear break with RSI 55-65 . Followed by good volume / Well seeing that too.
The Rockhopper breakout or the many from the cup and handle ( bottom of the cup ) in Premier . Cairn Tullow , Shell BP etc etc are the ones I love the most .
Quite a few in other sectors am watching at the moment
So for Ophir if we stay range bound 52-65 for a while and then break out , I'll engage .
Your long may have merit though , the tough bit of trading this way as that sometimes you will follow a wrong breakout (but you have to) . At least a stop loss is easy to place and will cost little just under old resistance .
All the best and hopefully this is the good breakout
Got to 65 and exceeded. I was optimistic timewise, but the daily now gives a 123 pattern activation in my view. Basically possible bottom (51 ish), high (64.75/65; closing prices only), higher low (51.15ish) and now a higher high at 65.4ish (bear in mind price must close above 64.8 to validate this otherwise the activation requires a close over the intraday high on March 13th at 65.8ish.
Anyway, in brief, possibly a bit early I've re-entered long (small position)
Ophir announces that it has entered into a farm-out agreement with Kosmos Energy ("Kosmos") covering the EG-24 exploration licence in Equatorial Guinea.
Under the terms of the agreement, Kosmos will acquire a 40% non-operated interest in Block EG-24. In consideration Kosmos will fully carry Ophir for the cost of a block-wide 3D seismic survey, during the 1st exploration period of the licence. Furthermore Kosmos will partially carry Ophir for the cost of a well if the partners subsequently elect to drill a well in the 2nd period of the licence. Kosmos will also pay its pro-rata share of past costs.
Commencement of the seismic operations conducted by Shearwater is scheduled to begin 14th May 2018 using the Polar Marquis vessel.
Completion of this transaction is conditional on approval by the Government of Equatorial Guinea. GEPetrol has a 20% carried interest in the EG-24 licence.
Nick Cooper, CEO, commented:
"Kosmos is a logical partner for us in EG-24 as its team have considerable prior experience of the Rio Muni Basin. Kosmos now operates the adjacent exploration blocks (W, S & EG-21) as well as retains a 50% interest in Kosmos-Trident Equatorial Guinea Inc., which operates the neighbouring Ceiba and Okume oil fields, which are up-dip from Block EG-24 and can offer infrastructure tie-backs if required. The farm-out reduces Ophir's risk capital commitment and increases our monetisation options in line with our disciplined exploration strategy."
Sorry about that guys, I had some good links to our Santos purchases but I somehow managed to nearly blow up my garage and cut off all my off grid power. How that last post got through is a mystery.
Trying to retrieve said info for you. Doesn't look that bad when you look at the overall numbers.
Probably thank 'The Groper' for our recent rise though.
Golar and Sclumberger(in particular)may have ulterior motives regds, E/G? We'll need to wait and see but its taking a while.
I knew what you meant and i know how hard its been for the sector in general and you have to be thankful for any small recovery...even if it doesn't equate to much.
Finally sometimes investments pale into insignificance when you're left watching another kind of monitor every day, but,
With EG there's no OneLNG until FID is signed so both Golar and Schlumberger, if they truly are serious, need to get their finger out.
As for the dam breaking I was talking about work not the price of oil per se, however oil is ticking up nicely.
I understand where you are coming from, as Xshite Energy, is a timely reminder of how things can play out and PI's get burned.
Seen this before...keep the wolf from the door and everyone at Ophir can enjoy their jolly a little bit longer, but eventually when the lights go out we're picked up for our debt and the pi's are left stranded...
I hope that doesn't happen, but it looks like there's more than business level theatrics at play here, as in the hydrocarbon industry in general, there always is.
P, i did state there was something up in the beginning with E/G and NC isn't gambling on anything he's now holding on by the seat of his pants.
I can't see the dam breaking much, all the governments are skint and cheap fuel is the way ahead and if its in house(shale oil)all the better its to do with economics and little else. I did read 2025 maybe a good year for global economics back in 2015 but who really knows as we have to watch all the old games for the rich and greedy being trundled out again.
Tanzania used to be British the hold up could be anything or nothing.
Is it Golar and Schlumberger who are holding this up?
Is he gambling on higher energy demand and prices?
Being in front end oil and gas it seems to me that it wont be long before the dam breaks as far as work is concerned.
Like everyone here I will be a lot happier when Fortuna FID is signed off and the show I back on the road.
Are the Chinese after a slice of the pie?
And what the hell I happening in Tanzania, half a billion barrels of oil equivalent with no appreciable forward movement.
Proposed Acquisition of a package of Southeast Asian assets from Santos
Ophir has agreed to acquire a package of Southeast Asian assets from Santos Limited, an Australian listed Oil & Gas company, for an aggregate cash consideration of $205 million pre-working capital adjustments, subject to certain approvals (the "Transaction"). The portfolio of assets includes material producing assets in Vietnam and Indonesia plus exploration and appraisal assets in Malaysia, Vietnam and Bangladesh.
The Transaction is in line with Ophir's stated strategy of rebalancing its portfolio towards a larger production and cash flow base to enable us to sustainably support the refocused exploration portfolio and to consider returning capital to shareholders. This rebalancing will also facilitate further economies of scale in operating expenditures, general and administration expenses ("G&A") and will provide greater capital allocation and financing efficiencies.
The Company intends to fund the consideration through its existing financial resources and a new acquisition bridge facility, which it intends to replace in due course with an increase in the Company's existing Reserve Based Lending ("RBL") facility.
· A balanced and complementary portfolio of Southeast Asian assets with low operating costs, strong cashflows, near term development opportunities and exploration potential
· Resilient production in Vietnam and Indonesia, providing low risk cashflow
o Proforma 2018 forecast working interest production from Santos assets of ~13,500 boepd
o Proforma Group 2018 production increases to ~25,000 boepd
o Proforma Group 2018 forecast funds flow from production doubles to ~$180 million
· Production life extensions utilising strategic infrastructure positions
· 2P reserves increase of over 40% from 49.4 MMboe to 70.6 MMboe
· Upside optionality provided by the diverse portfolio of development, appraisal and exploration opportunities in Vietnam, Indonesia, and Bangladesh
· Expected to bring forward Ophir's stated objective of being free cash flow positive, and therefore its ability to consider returning capital to shareholders
· Material cost synergies - estimated to be in excess of $13 million per annum
· Transaction expected to payback within three years at current commodity prices
· Transaction to be financed through existing financial resources and a new 18-month acquisition bridge facility of up to $130 million (for which term sheets have been agreed). The bridge facility will be subsequently refinanced into the Company's existing RBL facility
Nick Cooper, Chief Executive Officer, commented:
"It is a declared strategic objective of Ophir to rebalance its asset base and become free cash flow positive in order to consider regularly returning capital to shareholders. This transaction accelerates the realisation of this goal.
Ophir has maintained a strong balance sheet through the down cycle in order to benefit from such accretive opportunities that fit our established expertise. The acquired assets also offer an attractive combination of operational upside and material cost synergies with our existing Southeast Asian production base".
Current Trading Update
Current operations are performing in line with the guidance provided at the full year results in March 2018. The Company's existing production is expected to average 11,500 boepd in 2018 and generate net funds from production of $90 million.
Ophir continues to work to progress the project financing for the Fortuna project as outlined at the time of the full year results.
A conference call for investors and analysts will be held at 8.00am this morning.
Hi Shotry. I hope you are correct. I am a long term holder from Salamander days and showing a loss of over 60%. With oil price now consistently above 70 dollars a barrel I believed they would have gone much higher. Chris
which I think we'll see today, would seem to bring 64.8 into play. A close above 65 would bring the main tl resistance (descending) from jan 3rd into play (currently 68/69). A close above that suggests 75/76.5 and then possibly 82 .
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