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Ophir Energy management reaffirms backing of Medco takeover as it releases financial results

The recommended £390mln takeover offer is due to conclude later this month
oil and gas operations
The Equatorial Guinea cancellation put a US$614mln dent in the results

Ophir Energy Plc (LON:OPHR) interim chief executive Alan Booth reaffirmed management’s backing of the recommended takeover by Indonesian firm Medco.

Ahead of the anticipated closing date of the £390mln or 55p per share offer later this month, Booth said: “The board believes that this [offer] can provide Ophir shareholders with a certain upfront value in cash for the strategy that Ophir set out in September 2018, including rationalising parts of our exploration portfolio, reducing overhead costs and maximising returns to shareholders.

READ: Indonesian oil giant Medco Energi agrees to buy Ophir for £390mln

"Notwithstanding the recommended offer from Medco, the board of Ophir continues to remain focussed on its stated strategy and to maximise returns for shareholders."

In terms of its financial results, Ophir reported a 58% rise in revenue to US$298mln and a 55% improvement in net fund flow from production to US$143.5mln.

It had US$35mln of net debt at year-end, versus US$119mln of net cash a year before. And, the company said it had US$391mln of net liquidity as of 31 December.

The cancellation of the Block R project in Equatorial Guinea led to a US$614mln impairment.

Ophir reported a US$768mln total comprehensive loss for the year.

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