Ophir scores hat trick

FTSE-250 oil and gas company Ophir Energy has had three better-than-expected results in its drilling programme in block R, Equatorial Guinea.

All three wells drilled exceeded pre-drilling recoverable resource estimates, the Africa-focused company revealed.

As a result of test drilling on Fortuna West-1 (R6), the sixth gas discovery in block R, the total management estimate of Block R recoverable contingent resources (2C) has been lifted by more than 300% from the pre-2012 drilling programme estimate of 697bn cubic feet, which is 116m barrels of oil equivlent (mmboe), to 3.0trn cubic feet, or 500 mmboe.

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Ophir has an 80% stake in block R.

"The success of Fortuna West-1 across multiple targets improves our overall understanding of the Fortuna Complex and Viscata Channel Levee Complex within Block R. The well discovered over 1.0trn cubic feet (166 mmboe) of recoverable gas, and has significantly derisked other exploration targets within the Block," said Nick Cooper, Ophir's Chief Executive Officer.

"The Fortuna wells combined with the Tonel discovery provide confidence to proceed with commercialising the gas via LNG [liquefied natural gas] export. A follow-up exploration and appraisal drilling programme in 2013 will further advance this valuable gas asset toward development," Cooper added.

JH