Ophir shares dive on placing of 36m shares

Shares in Ophir Energy fell over eight per cent on Thursday after Credit Suisse confirmed that it has sold 36m shares on behalf the investment funds of two stakeholders, Och-Ziff Capital Management and Mittal Investments.

The shares, which made up around 9.0% of the issued share capital, were sold at 475p each, raising proceeds of £171m.

Both Och-Ziff and Mittal Investments have consented to a lock-up of 90 days in relation to their respective remaining shareholdings, which make up another 9.0% of the company.

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The share price had fallen 8.76%, equal to 45.50p, by 474p by 14:30.

The news overshadowed a positive update from the company out the same day, in which the group said that its 40% owned Mzia-2 appraisal well in Tanzania had been a success, with the Mzia-1 and Mzia-2 columns confirmed to be in direct pressure communication.

The results confirmed a vertical gas column of at least 200m for the Mzia field.