Africa-focused upstream oil and gas exploration company Ophir Energy has strengthened its financial position by raising proceeds of 832.7m dollars via a placing and rights issue during the period from January 1st until May 16th.
In an interim management statement and operational update for this period the group said that material operational progress had been made across the portfolio, with the increase of Jodari and Mzia field recoverable resources and the completion of the Mzia-2 appraisal programme.
Key operational events included an extended contract in Tanzania with Odfell Drilling for Deepsea Metro 1 drillship with partner BG Group for a period of at least 18 months for the continuation of the 2013-2014 East African offshore drilling programme.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The group also carried out the successful Mzia-2 Drill Stem Test on Block 1 Tanzania, confirming that the flow rate was at the upper limit of the expected range of 57m standard cubic feet per day ( mmscf/d).
In Ghana, the group said that it had been awarded a contract for the Stana DrillMAX, Dual Derrick Drillship (Stena) to drill the Starfish-1 well in the Offshore Accra Block.
Nick Cooper, Chief Executive Officer of Ophir Energy, commented: "We have seen considerable operational and financial progress in the first half of 2013, both via the drill bit and through the support for the successful March 2013 placing and rights issue."
He added: "The results of the Mzia-2 appraisal programme represented a key step towards achieving Tanzania's first LNG development project and we await the results of the Ngisi-1 exploration well in June. We are looking forward to an exciting second half of 2013, with further drilling of up to five wells across Blocks 1, 4, and 7 in Tanzania and in the Offshore Accra Block in Ghana."
Ophir Energy's share price was down 0.84% to 389.90p at 13:06 on Thursday.
MF
