Ophir Energy reports full-year profit, prepares drilling programme

In 2014 oil and gas exploration outfit Ophir Energy saw a sharp rise in profitability as it completed the sale of various exploration blocks off-shore Tanzania.

Profits before tax turned into the blue to the tune of £288.49m, versus the prior year loss of £280.5m.

The company registered a £671m gain on farm-outs and spent £333.8m on its exploration activities.

In reaction to the recent collapse in oil prices the Africa and Asia-focused outfit said it had identified and actioned $250m in budget savings and reductions in capital expenditures for over the next two years.

Last year the company doubled its exploration acreage - albeit with no firm well commitments - through addition of new licences in Gabon, Indonesia, Myanmar and the Seychelles.

At the start of 2015 it also acquired Salamander Energy, where management touted its low break-even production.

In 2015 the firm will focus on drilling at the low-cost G4/50 Block in the Gulf of Thailand, while at the same time laying the groundwork for its 2016/2017 drilling programme. The company is hoping to be able to take advantage then of the softening in the market for rigs.

Cash and cash investments as at 31 December stood at $1.17bn, up from the $667m seen at the end of 2013.

As of 08:19 shares in Ophir Energy were 2.72% higher at 128.2p.