Ophir Energy to Buy Assets Package in Southeast Asia for $205 Million

By Oliver Griffin

Ophir Energy PLC (OPHR.LN) said Thursday that, subject to approval, it has agreed to acquire a package of assets in Southeast Asia for $205 million from Santos Ltd. (STO.AU).

The oil-and-gas explorer said the portfolio includes material producing assets in Vietnam and Indonesia, as well as exploration and appraisal assets in Malaysia, Vietnam and Bangladesh.

The deal is in line with the company's aim of re-balancing its portfolio toward a larger production and cash-flow base, which will allow it to support its refocused exploration portfolio and consider capital returns to shareholders, Ophir Energy said.

If successful, the deal is expected to add a net working interest of around 13,500 barrels of oil equivalent a day to Ophir Energy in 2018, the company said. It will also increase the company's net reserves to approximately 21.2 million barrels.

The assets would be expected to double the company's current fund-flow from production to $180 million, Ophir Energy said.

Ophir Energy said it is performing in line with guidance and that current production is forecast at an average of 11,500 barrels a day in 2018.

Write to Oliver Griffin at [e-mail]

(END) Dow Jones Newswires

May 03, 2018 03:30 ET (07:30 GMT)

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