Ophir Energy Live Discussion

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CharlieHarper 17 Sep 2018

It's a great summer Hi BB, too dry in Jockland…thats new. Sorry to hear you’re out of pocket, nearly nothing worse. Ophir, E/G, Fortuna, America, Golman Sachs, Nick Cooper, who is still here at Ophir as a consultant…i would bet if we can’t strike a deal with the Chinese that an American or American controlled company will walk in and take Fortuna for nowt…and with E/G as a member of OPEC a Chinese partner mat not happen anyway. Asian headquarter move is great and we have friends there but Tanzania isn’t going anywhere, anytime soon. VRS is a total success BB well done…silver linings and all that… Best of luck

BarleyBaron 16 Sep 2018

It's a great summer Charlie. A great time to build sandcastles… Oh I wish I had spent my summer building them. Been in the farming game for 40 years give or take and it was the worst one ever. An absolute financial disaster. TOO DRY. As for Ophir. I hate to think what next week will bring. The big sellers are back, drip feeding into the market and there is nothing we can do about it apart from watch it slide further down until a Fortuna decision is made. One of the board said “Ophir has not given up on Fortuna”. I hope it has not but come Jan its all over for that. I said a while back that getting finance from the Chinese meant letting go of a few pounds of flesh. There is so much money to be made from Fortuna and so little time to sort out a deal that I think our license will expire and they will walk in and get it really cheap and get it all. Nobody from what I can see is prepared to lend to us on our terms. We are really on the back foot now and if a deal is done it is not going to be a good one. 300 million writedown is not a good signal to be sending out there. On the Fortuna front I hope it comes good but I am not holding my breath. The move out of London is a good one and the company restructuring looks good for the future. As for Tanzania, what Is going on there. I’m depressed enough by all that’s happened this year and I do hope it all turns out good. Mind you, VRS is chugging along rather nicely, hope you and others threw a few quid at it. I’ll be back posting in earnest later this week. Baron.

chummer 14 Sep 2018

Half Yearly's … we will focus on shareholder value… They’re having a laugh Let them act NOW if they want us to take them seriously

CharlieHarper 13 Sep 2018

Half Yearly's Some web views… Ophir impairs Fortuna, aims for cost cuts UK player runs up large first-half loss as it impairs value of FLNG project and set to switch HQ Eoin O’Cinneide 13 Sep 2018 074 GMT Updated 13 Sep 2018 08:51 GMT Share: E-mail Ophir Energy has impaired the value of its proposed Fortuna floating liquefied natural gas project in Equatorial Guinea to $300 million as the UK player looks to cut costs and avoid frontier exploration. The London-listed player is to axe jobs in London and seek a new headquarters based in Asia as it looks to focus on cash-generative businesses and considers its options “to unlock the potential value” in its liquefied natural gas assets. Fortuna in Golar focus despite OneLNG hit Read more Ophir has impaired the value of its troublesome Fortuna scheme back to just $300 million, booking an impairment on the project of around $310 million in the first half, when total impairments hit $358 million. In the company’s results statement, the $309.89 million charge is described as an “impairment on non-current assets held for sale”. This was instrumental in Ophir booking a net loss in the six months to the end of June of $375.41 million as compared with a loss a year earlier of $84.62 million. The company said it booked the impairment on Fortuna “given the uncertainty around the value (it) can ultimately realise” on the project. “The Fortuna development suffered a setback in the first half of 2018 with the dissolution of OneLNG and the subsequent effective withdrawal of Schlumberger from the Fortuna project,” it said. “We continue to work to realise value for shareholders whilst we are in possession of the licence.” Earlier this summer Ophir chopped its capital expenditure by $30 million on previous guidance after deferring spending on Fortuna. Expected full-year capex was seen at $145 million in mid-July, which includes the acquisition of a clutch of Southeast Asian assets from Australian independent Santos. Schlumberger in OneLNG exit Read more Ophir’s plan to get the Fortuna FLNG project off the ground has taken a number of hits in recent months, not least the decision by oilfield services giant Schlumberger to pull the plug on its OneLNG joint venture with Golar LNG, which is a partner in the deep-water project. The partners have also had trouble securing financing for the scheme. Ophir and OneLNG had been in talks with Chinese yards to secure finance but sources said the government in Beijing, in return for funding, wanted the FLNG vessel converted in a domestic yard. In May, Nick Cooper quit as chief executive of Ophir and was replaced on an interim basis by non-executive director Alan Booth. On Thursday the company said its new strategic review, under Booth’s leadership, has called for the impairment at Fortuna as well as a focus on more cash-generative businesses, in particular brought about by the Santos assets deal. The company is also to minimise its exposure to frontier exploration and focus instead on near-field opportunities. It also said it will downsize the London headquarters within the next 12 months and is looking to set up a new headquarters somewhere in Asia, “to serve as the hub for (its) ongoing business, generating material cost savings”. Ophir chops capex as Fortuna spend deferred Read more Ophir added: “The board believes that these actions will create a focused, efficient business generating a significant amount of free cash flow and will provide a strong platform from which the new chief executive will be able to grow the business, as well as consider other capital allocation options.” The hunt for a new permanent chief executive is ongoing. Ophir made revenues in the first six months of $102.07 million, up from $88.29 million a year earlier. Exploration expenses were $52.98 million, down from $77.13 million a year earlier. Full-year production is seen at 27,500 barrels of oil equivalent per day, with projected capex kept at $145 million Ophir ‘has not given up on Fortuna’ Interim CEO Alan Booth says company in talks with ‘credible’ companies over troubled FLNG scheme in EG Eoin O’Cinneide 13 Sep 2018 102 GMT Share: E-mail Ophir Energy “has not given up” on the challenging Fortuna floating liquefied natural gas project in Equatorial Guinea as the UK player continues talks with “credible” companies about finally delivering the proposed scheme. The London-listed operator’s interim chief executive Alan Booth acknowledged, however, that it is “up against the clock” with regards to the proposed Block R development as the production sharing contract nears expiration, while admitting that Ophir’s valuation of Fortuna may be dumped to zero, following a huge writedown this week. Ophir impairs Fortuna, aims for cost cuts Read more Ophir on Thursday impaired Fortuna by $310 million down to $300 million as it continues to struggle to get financing for the proposed project, where the licence will expire at the end of the year. “We haven’t given up on the project – I want to reiterate that,” Booth, who took charge of the company after long-time chief executive Nick Cooper quit in May, said in an investor presentation after Ophir unveiled a loss in the first half of $375.41 million, due to impairments totaling $358 million. “We are not leaving. We have not given up on EG,” he said, adding that Ophir is still in discussions “with a number of credible, financially capable companies who have the ability to deliver that project”. He added: “We don’t have a deal, but we understand what it takes to make a deal happen.” “We haven’t given up on EG. We are working very hard. We will do whatever we can to deliver a project there,” he said, although admitting “we are up against the clock”, given the impending licence expiration. Equatorial Guinea ‘may scrap’ Fortuna LNG Read more Director of exploration & Africa Oliver Quinn acknowledged the risk of a third party waiting it out until next year for the licence to expire, but said any company which did that would miss out on the significant strides Ophir has made in the project planning to date, including on LNG offtake contracts. Both Booth and chief financial officer Tony Rouse said a significant number of factors were considered in pegging the current value to Ophir of Fortuna at $300 million, but said this figure will change either positively or negatively at the end of the year, depending on what happens with possible partners or the licence. “We needed to move away from the number we were holding… There was no offer on the table,” Booth said. “We felt that $300 million was a reasonable number to land on given the risks, the timeframes and the people we are talking to.” On the possible future valuation of Fortuna, Booth added: “We hope it would be north of zero – it could be zero, it could be more than that.” Ophir said on Thursday that it had written down the value of Fortuna “ given the uncertainty around the value (it) can ultimately realise" on the project. Ophir may have hit new challenge at Fortuna Read more Ophir’s plan to get the project off the ground have taken a number of hits in recent months, not least the decision by oilfield services giant Schlumberger to pull the plug on its OneLNG joint venture with Golar LNG, which is a partner in the deep-water project. The partners have also had trouble securing financing for the scheme. Ophir and OneLNG had been in talks with Chinese yards to secure finance but sources said the government in Beijing, in return for funding, wanted the FLNG vessel converted in a domestic yard. Asked on Thursday what lessons the company had learned from the exit of OneLNG, Booth said: “Lesson learned: choose your partners carefully. Ophir sees Southeast Asia consolidation Company to focus heavily on region where assets bought from Santos are based as headquarters set to shift Eoin O’Cinneide 13 Sep 2018 10:29 GMT Updated 13 Sep 2018 10:33 GMT Share: E-mail Ophir Energy is open to further asset deals – and possibly a company sale – as the London-listed player plans to move its headquarters from London to Southeast Asia, which will become its core focus region. “We need to achieve sustainable cash flow… We want to see a clear, direct route to value delivered back to our shareholders from any investment we make,” interim chief executive Alan Booth said in an investor presentation on Thursday after the company unveiled a significant first-half loss and its forward plans after a strategic review. Ophir ‘has not given up on Fortuna’ Read more Part of those plans involve downsizing in the London office within the next 12 months – with Booth actually saying the office is to close – as well as veering away from frontier exploration towards more near-field exploration work. Booth said Ophir needs to scale up in Southeast Asia, where the company has taken over a series of assets from Australian independent Santos, in a process that “may involve consolidation”. “We do see Southeast Asia as the heart of our business, and clearly if we do do some consolidation, it will be in that region – we don’t want to shoot off to Argentina, or anything,” Booth added of plans in the region, where he said companies must have an “ability to be taken seriously” in order to progress in the mergers and acquisitions market. “Delivering value and returns to shareholders is what it is all about – not jobs for the sake of jobs,” Booth added. Booth took over the reins as interim chief executive earlier this year after long-time boss Nick Cooper quit in May. The search for a new chief executive continues, with the likelihood being that person will be based in Southeast Asia. “We are a Southeast Asian D&P (development and production) company and our CEO will likely be based in the region,” Booth said. “For any cricket fans out there, I am not the night watchman – I am here to drive the business forward and deliver it into the hands of the new person,” he added. Although Ophir has not landed on where its new headquarters will be, jobs are to be lost in London. Ophir impairs Fortuna, aims for cost cuts Read more “Closing our London office clearly is a tough decision – it is a sad decision,” Booth said, although adding that is it something the company has to do. Booth also said the company remains committed to Equatorial Guinea and has not given up on its proposed Fortuna floating liquefied natural gas project. The company also has assets in Mexico, Myanmar and Tanzania. Asked how the company will treat assets in its portfolio outside of Southeast Asia going forward, Booth said: “We will fulfill our obligations, we will manage our obligations. “Every investment will be carefully scrutinised, and where it doesn’t fit, we will take appropriate action.” best of luck

Shotry 13 Sep 2018

Half Yearly's Looks like that is pretty well what the market expected too. With regards to the 300 million write down of Fortuna, is that the whole thing, or is there more to come on expiry?

CharlieHarper 13 Sep 2018

Half Yearly's Have to be happy moving away from London and its GB-USA manipulation and control regarding hydrocarbons. The US want to corner the LNG world market for its shale gas, apparent in the ongoing Qatar/Iran fiasco, not surprised the Burger’s jumped off the top of the building. Asian move could signal there is plenty of support for Ophir and its gas reserves(it may be too late for Fortuna and cobwebs cover Tanzania)but we’re basically back to square 1 with new exploration needing some big hits…come on Mexico. About what i expected from today… best of luck

chummer 13 Sep 2018

Half Yearly's They mention share holder return being the priority numerous times, in fact much more than I would have expected. Sounds like they might mighty even give a special dividend or something? As the share price has been so bad for so long that might be the only way of helping the situation.

CharlieHarper 12 Sep 2018

Half Yearly's Results tomorrow…most of our news to reveal itself in the next 3 months or so…tomorrow would be a good start although i’m not expecting much. SP free of seller and recovery…FID resolution…Mexico block 5 spud all to come in the next few months with positive and negative outcomes possible. Plenty of organisations taking up the slack on the shares…they can’t all be wrong esp. Hotchkis who must know SailingStone very well and have taken up much of the slack at favourable prices…orchestrated? you decide. best of luck

PDMSlad 11 Sep 2018

Looks like we're in lads 3 (maybe 4 years) tops I reckon, a lot of subsea work to do etc, but by far the cheaper option and quicker start up time. What are the Tanzanians playing at!

CharlieHarper 11 Sep 2018

Looks like we're in lads There has been some heavy days of trading, well for Ophir anyway, since SailingStone decided to ditch us. They can’t have much more to sell into the market, so what happens when the selling stops? Coupled with good news going forward would be perfect… Daily… investing.com Ophir (OPHR) Historical Prices - Investing.com Find here historical data for the Ophir Energy Plc stock (OPHR) as well as the closing price, open, high, low, change and %change. V’s monthly…a year ago we were trading around a third of the share’s monthly. investing.com Ophir (OPHR) Historical Prices - Investing.com Find here historical data for the Ophir Energy Plc stock (OPHR) as well as the closing price, open, high, low, change and %change. Who knows, but…best of luck

chummer 11 Sep 2018

Looks like we're in lads All I seem to read is good news. All the share price does is go down

PDMSlad 10 Sep 2018

Looks like we're in lads U.K. – 5 Sep 18 Ophir Energy says optimistic can agree Fortuna deal by year-end Ophir Energy is "cautiously optimistic" it will meet a looming deadline for a final investment decision and save its stalled Fortuna FLNG project in Equatorial Guinea, a senior official said on Thursday.

CharlieHarper 08 Sep 2018

Mexico and Santos News Deep-water wildcats on Mexico menu Key wells to be spudded in fourth quarter, most of which are on deep-water acreage awarded in 2016 round Kathrine Schmidt Houston 6 Sep 2018 220 GMT Share: E-mail Mexico’s private operators are gearing up for what could be an exciting few months of exploration in late 2018 after years of careful planning. The key wells set to start in the fourth quarter — other than Talos Energy’s appraisal of the Zama discovery in shallow water — will stem largely from contracts awarded in Mexico’s first deep-water bid process in 2016. The highest-profile of those wells is the Trion probe from BHP, set to go down after the company wraps up with a trio of wells off Trinidad currently in progress, with work under way by the Transocean drillship Deepwater Invictus. The plan is to sail to the Mexican sector of the Gulf of Mexico in the fourth quarter to drill the company’s first appraisal of the Trion discovery, where BHP is partnered with Pemex in the state-led company’s only deep-water farm-out. The company has also permitted several exploration prospects near Trion to fulfill the minimum work programme of two wells. BHP chief executive Andrew Mackenzie said in a recent investor call that the company did not find “particular cause for alarm” with the change in administration relative to the company’s work on Trion. “We have a great relationship right now with Pemex,” he told analysts. “We have been able to progress all the approvals to drill the well pretty much in line with what we expected. We have seen other opportunities to drill.” Prospects France’s Total won the contract for Block 2 in Perdido in Mexico’s inaugural deep-water Round 1.4 in 2016, along with US supermajor ExxonMobil, and plans to spud the Etzil-1 well there this December. Murphy, another victorious operator from Round 1.4, says it will now kick off drilling of its first prospect, Palenque, in the fourth quarter. The well is set to be a first-of-its kind deep-water probe in the southern Salina del Istmo basin, which has been a prolific producer in shallow waters but has seen little exploratory activity in deeper waters. The block in question, Contractual Area 5, was the most competitive of that first deep-water round, and was captured by Murphy in partnership with Petronas, Sierra Oil & Gas and Ophir Energy. In a call with investors last month, Murphy chief executive Roger Jenkins referred to the prospects as some of the “nicest” he has seen in his career, and was likewise nonplussed in regard to the change in government or its possible effect on the company’s immediate work programme. “I’m not sure about where future leases will be, but we have ours, we feel good about it, we feel good about what we’re hearing,” he told analysts. “We’re progressing through an approval process to drill, we’re moving full on with that, and do not see anything in that election to prevent that at this time.” In May the CNH approved Murphy’s exploration plan, a proposed $90 million work programme overall which would see the well drilled in about 750 metres of water some 120 kilometres off Tabasco state. It will aim to target middle and lower Miocene objectives, with a total target depth of 4000 metres. If successful, the partners could also opt to drill a delineation well, which would bring the investment closer to $158 million. The block covers 2573 square kilometres, with water depths ranging between 450 and 1450 metres. Estimate Murphy sees a mean pre-drill estimate for the prospect at 200 million barrels of oil equivalent with 500 million boe as an upside, with a net well cost to the company of about $15 million. China National Offshore Oil Corporation (CNOOC), which landed two blocks and committed to three wells in Round 1.4, could also see operations kick off in the early part of 2019, according to exploration plans approved by the CNH. The plan outlined two scenarios. The first would involve the drilling of the Ameyali 1 EXP well, which would target upper Wilcox objectives that represent the best-imaged structure to date on the blocks, CNH officials said. That could result in the incorporation of reserves of up to 225 million barrels. Then, if successful, a delineation well could fulfill the two-well requirement. In an alternative scenario, CNOOC would also drill a second exploration prospect called Tlami 1 EXP, which could also yield its own delineator in the event of positive results. The second round of drilling might not take place until early 2021, however, near the end of the four-year exploration phase. Upstream has previously reported that the CNOOC semi-submersible Bluewhale I could be in contention to carry out the work on the blocks. Other operators from the initial batch of deep-water blocks let in 2016 saw approval of exploration plans this year, but drilling is farther out. Statoil won approval for an exploration plan for Area 3 in the Salina basin that calls for one prospect, Hunab, to be drilled in late 2019. Meanwhile, BP has penciled in drilling at a prospect called Serrano in Area 1 of the Salina basin in the third quarter of 2020. The last two winners in Round 1.4, a grouping of Chevron, Pemex and Inpex on Area 3 in the Perdido area, and Petronas with Sierra on Area 4 of the Salina basin, did not commit to any wells in the round, focusing instead on seismic and studies. Santos completes asset sale Ophir Energy completes acquisition of stakes in Asia Josh Lewis 6 Sep 2018 23:49 GMT Updated 6 Sep 2018 23:57 GMT Share: E-mail Australian company Santos has completed the sale of its non-core Asian assets to London-based independent Ophir Energy. Santos confirmed Friday it had completed the sale of the assets following the initial deal originally agreed in May. It said it had received cash proceeds of US$144 million at completion, representing a sale price of US$221 million after standard adjustments including net free cash flows generated by the assets from the transaction effective date of 1 January 2018 through to completion. Included in the sale was Santos’ 31.875% interest the Block 12W production sharing contract and 50% stake in the Block 123 PSC in Vietnam, its 67.5% stake in the Madura offshore PSC and 45% share in the Sampang PSC in Indonesia, its 20% interest in the deep-water Block R PSC in Malaysia and its 45% stake in the SS-11 PSC in Bangladesh. Block 12W contains the Chim Sao and Dua oilfields, Madura contains the Maleo and Peluang gas field, Sampang hosts the Oyong and Wortel gas fields, while Block R contains the Bestari oil discovery. Santos will use the funds received from the sale in September to help reduce its net debt, which stood at US$2.2 billion as of 31 August. The company said Friday it looks set to reach its US$2 billion net debt target by next month, more than a year ahead of schedule. The potential bounce here may be considerable…it may have been planned that way from a long way out? best of luck

PDMSlad 07 Sep 2018

Looks like we're in lads As ever CH, you come up with some great research, fingers crossed, hopefully we will have our partners signed up soon

CharlieHarper 06 Sep 2018

Looks like we're in lads Acquired the Santos bits n bobs today…anybody? best of luck