Ophir Energy Share Discussion Threads

[adg] 11/1/2019 13:50

actually I think that they are putting it out there to 'US THE INVESTORS' what they were prepared to pay

[valuehunter1] 11/1/2019 13:50

This is getting interesting! Medco deffo up for this, upto the deal makers to cut a deal.

[oilretire] 11/1/2019 13:49

Very underhand by medco.....

[madmonkflin] 11/1/2019 13:49

How to give it to your shareholders after wasting all that money on Fortuna.

[nigelpm] 11/1/2019 13:49

I'd argue that's incredibly bullish - bought more.

[madmonkflin] 11/1/2019 13:49

Looks like the board screwed up, should have gone with the 58p offer, bunch of numpties.

[rayrac] 11/1/2019 13:48

So they’ve walked the price down from circa 58p! Opportunistic it seems.

[ashkv] 11/1/2019 13:48

For immediate release 11 January 2019

Ophir Energy plc ("Ophir")


Statement regarding the potential acquisition of Ophir by PT Medco Energi Global PTE Ltd ("Medco Global") (a wholly-owned subsidiary of PT Medco Energi Internasional Tbk ("Medco")).

Ophir notes the announcement made by Medco earlier today in relation to the potential acquisition of Ophir.

Background to discussions

On 22 October 2018, Medco made an unsolicited approach to Ophir to acquire the entire issued and to be issued share capital of Ophir at an offer price of 58.0 pence per Ophir ordinary share. In addition, Medco indicated a willingness to consider offering Ophir's shareholders additional potential consideration via contingent value rights in relation to the Fortuna LNG asset in Equatorial Guinea (the "EG Asset") subject to further analysis and due diligence (the "Initial Offer").


On the basis of the Initial Offer, the Board of Ophir entered into discussions with Medco, granting access to due diligence to discuss how Ophir's shareholders could receive appropriate value for the EG Asset.

Following a number of discussions on value and offer structure, in the absence of any confirmation regarding the licence extension to the EG Asset and following the decline in oil price since the Initial Offer, Medco submitted a revised proposal on 20 December 2018 of 53.8 pence per Ophir ordinary share.

Updated proposal

This morning, Medco submitted an updated possible offer to the Board of Ophir at 48.5 pence per Ophir ordinary share and subsequently made a unilateral announcement without any further discussion.

Further announcements will be made as and when appropriate.

This announcement does not amount to a firm intention to make an offer under Rule 2.7 of the Code and there can be no certainty that any offer will be made.

This announcement has been made by Ophir without the approval of Medco or Medco Global.

As previously stated, in accordance with Rule 2.6(a) of the Code, Medco Global must, by no later than 5.00 pm GMT on 28 January 2019 (the "Deadline") either announce a firm intention to make an offer for Ophir under Rule 2.7 of the Code or announce that it does not intend to make an offer for Ophir, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. The Deadline will not apply in circumstances where either: (a) it has been extended with the consent of the Takeover Panel in accordance with Rule 2.6(c) of the Code; or (b) Rule 2.6(b) of the Code applies, by virtue of a firm intention to make an offer for Ophir having been announced by another offeror prior to the Deadline.

Enquiries

[adg] 11/1/2019 13:47

management statement out from Ophir, so if an offer of 58p was discussed in October and then an offer of 53p in December was again discussed then why didn't management announce something then?

On thing it does suggest is a very tight ship !!

[nigelpm] 11/1/2019 13:47

ha ha - that's immense - first offer was 58p!

[spacedust] 11/1/2019 13:46

RnS out again!!!!

[nigelpm] 11/1/2019 13:40

The logical way out of this if OPHR board feel pressure from shareholders is to start talking to Soco about a merger.

[ashkv] 11/1/2019 12:58

Dudie per Dec drilling update if the rest of production held steady - after workovers it can be inferred that production had increased close to 27k bdp

From 7 Dec Drilling Update RNS ->

Bualuang Development Drilling

The first part of the Phase 4 development drilling programme has been completed successfully. Four workovers and three new production wells were drilled, all of which have been brought on stream. Production from Bualuang averaged 9,600 bopd in November against a year to date average of 8,000 bopd.

[ashkv] 11/1/2019 12:49

Letter sent to Ophir management

Dear Alan Booth,

The non-firm offer of 48.5p from Medco has to be rejected as it is undervaluing Ophir's assets. It is not even providing for "Net Asset Value" prescribed to Ophir post a full write-off for Fortuna license per Ophir's balance sheet, is prior to Zama appraisal results by Premier et al (which could highly enhance value of our Mexican licenses), ascribes minimal value to Tanzania Gas Assets along with Mexican & Equatorial Guinea licenses. The offer is highly opportunistic and came about when Brent was trading at 1.5 year lows, GBPUSD close to multi-year lows.....I will refrain from continuing as you can comprehend what I am seeking to convey.

I appreciate management have minimal shareholding but it is your fiduciary obligation to ensure long term Ophir shareholders, British Pensioners etc are treated fairly.

Ophir's advisor Morgan Stanley had a 80p target price for Ophir prior to withdrawing the same on 31st December 18 due to their involvement in Medco talks - I would hope Ophir management / Morgan Stanley will get at least this base level for Ophir in a market that is only now recovering.

A number of British listed E&P firms are trading significantly above their December 2018 lows and volume weighted averages -Premier Oil, Genel, Cairn Energy as the market has recovered in short tenure - therefore the premium offered by Medco is almost minimal if one is to assume Ophir would track the share price of fellow producing E&Ps.

I look forward to reviewing Ophir's update on 15 January 2019 and it's rejection of this highly opportunistic offer from Medo to pry away these valuable assets just when they are starting to perform well and accrue value to long suffering Ophir shareholders. Hopefully your short tenure has a more favourable outcome than that of prior CEO Nick Cooper which has led to the Medco offer which in practical terms if accepted will not be much better than a bankruptcy/liquidation for long term Ophir shareholders.

Best regards

[nigelpm] 11/1/2019 12:48

Good point - dudie - critical in fact.

[thedudie] 11/1/2019 12:44

The statement on Tuesday is kind of important now. The assets were out-performing in the September statement.

[nigelpm] 11/1/2019 12:42

Indeed - board's job now to get best value for shareholders - I'd be more than happy giving them some time on that front - appreciate I might not be in the majority - we'll see.

[ed 123] 11/1/2019 12:36

Well if it turns out to be 100% I'll be dancing in the street ..... but the market is not saying that's at all likely.

Also, we have to look at the institutional holders' situations. They will decide it. Will they want to hang on and see the shares fall? I don't think so.

[nigelpm] 11/1/2019 12:32

For me, it's about profit. I don't have an emotional attachment to any shares. I buy them and I sell them. A quick 50% gain would be good business for me.

And me. However, I was looking for 100% here!!

[ed 123] 11/1/2019 12:27

Romeike.

I follow the oil and gas sector. Fwiw, I have some success too.

I was buying Ophir in the 32.5 to 35.5p region. I could see it was cheap then. At 50p I would happily take my profit and look for the next. I think there's another couple of pence for a recommendation here.

Nigelpm.

For me, it's about profit. I don't have an emotional attachment to any shares. I buy them and I sell them. A quick 50% gain would be good business for me.

[nigelpm] 11/1/2019 12:26

I see lots of disappointment here with the 48.5p, but the shares were languishing in the low 30's for a reasonable period. Why weren't people buying then if it was so clearly cheap? Also, now, if the shares are worth more than 48.5p, why aren't people buying at 45p?

I was! I'm not buying now as firmly expect the bid to fail and shares to fall again. Value takes time to be outed. 48p is not what I had in mind.

[ashkv] 11/1/2019 12:25

Also please note Sterling is in the doldrums which has made Ophir 10-12% cheaper than it was in early 2018 - market is not reflecting at all the fact that E&P shares should trade higher when GBP goes down as earnings in USD while share price in GBP.

[romeike] 11/1/2019 12:22

You realise we are in an oil/gas bear market don't you? I can't see any compelling case for supporting the sale of Ophir for peanuts just so you can make a few quid.

[ed 123] 11/1/2019 12:19

Yes, Ohisay, there is another 10mmbbl of 2C at Bualuang, which could be converted to 2P. Pro-rata that might add 5p to 7p per share to value if converted.

It's that sort of thing that a bidder is going for, the added value. If the seller wants to price in absolutely everything, then what's the point for the buyer?

I see lots of disappointment here with the 48.5p, but the shares were languishing in the low 30's for a reasonable period. Why weren't people buying then if it was so clearly cheap? Also, now, if the shares are worth more than 48.5p, why aren't people buying at 45p?

(No advice intended.)