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Ophir Energy to “significantly downsize” presence in London

The company said it is likely the new chief executive will be based in Asia, where it is due to establish a new headquarter
oil and gas operations
It reported a US$375.4mln loss from continuing operations

Ophir Energy Plc (LON:OPHR) this morning announced that it is transitioning its leadership to Asia and will “significantly downsize” its presence in London.

The company’s headquarters will be established in Asia which will act as a hub for operations, supporting a new strategy focused more on cash generative production and development rather than exploration based opportunities.

A process is underway to appoint a new chief executive and, today, Ophir said it is likely that the new boss will be based in Asia.

“Ophir has an operating asset base capable of delivering free cash flow of $300 million over the next three years, a strong operating capability and potentially valuable gas assets in Equatorial Guinea and Tanzania,” the company said.

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In Ophir’s separate interim results statement, reported production of 11,400 barrels of oil equivalent per day which was described as marginally ahead of expectations.

The company generated US$102mln of revenue, with ‘net funds flow from production’ stated at US$43mln. It had some US$358mln of impairments and write-offs, including US$310mln related to the Fortuna asset.

It reported a US$375.4mln loss from continuing operations. And the company ended the first half with US$75mln in cash, with liquidity of US$371mln.

Interim chief executive Alan Booth said: “the board is rebalancing the company's portfolio towards a larger Asian production and cash flow base with the aim of building a stable, self-financing E&P company.

“The recent acquisition of assets from Santos is a considerable step towards this goal, doubling our production and operating cash flow.

"On Fortuna, we are continuing to work to deliver value for our shareholders whilst we are in possession of the licence. Reflecting the uncertainty surrounding this, however, we have impaired the value of the asset to $300 million."

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