Ophir Energy recorded an operating profit of $294.4 million (2013: $307.6 million loss) for the year ended 31 December 2014.
The recording of a profit follows the successful farm-out of a 20% interest in Tanzania Blocks 1, 3 and 4 which resulted in a gain of $671.7 million, the company said in a statement.
Nick Cooper, CEO of Ophir Energy said “We continued to drive the business forward in 2014, completing the Pavilion transaction, proving up more resource, and taking the first steps towards a sustainable financing strategy with the acquisition of Salamander Energy which brings low break-even production.”
Cooper said the company responded to the current oil price environment by identifying and actioning $250 million of budget savings and capex reductions over the next two years. However, there is a unique opportunity at the moment to acquire exploration acreage at low cost and with minimal work commitments. Ophir has doubled its exploration footprint during 2014 but only has $100 million of committed E&A spending in the portfolio between now and 2017.
He believes Ophir Energy is able to offer investors unique access to a high-class exploration portfolio where only the prospects that offer the best potential returns are drilled.
Image: Ophir Energy