Ophir Energy said the company’s production is on track to meet expectations for the full year.
Production during the first half of 2015 averaged 14,600 boepd, the Bualuang field in the Gulf of Thailand contributing 12,600 boepd, the company informed in its first half activity report.
Ophir said it continued to advance and significantly de-risk the Fortuna FLNG project in Equatorial Guinea. The selection of Golar FLNG as the midstream partner lowers the capital intensity of the project, with upstream capex to first gas expected to be c. $800 mm, and accelerates the lead time to first gas. Both upstream and mid-stream FEED studies are commencing this quarter with a Final Investment Decision in mid-2016 and delivery of first gas in mid-2019.
Operations elsewhere are progressing to plan. The Group has recently completed the acquisition of 10,800 km2 of 3D seismic data offshore Myanmar. In Indonesia, mechanical completion of the Kerendan Gas Project in Kalimantan is forecast to complete this month and the development remains on schedule to start delivering 20 mmscfd in 2H 2016.
The group’s balance sheet remains strong with $720 million of cash on the balance sheet at end June, according to Ophir.
Group revenue, cash flow and capex are expected to be in line with expectations and the cash at year end 2015 remains as previously forecast at $700-750 million with a net cash position of $350-400 million.
Ophir said it has only $100 million of contractually committed exploration and appraisal expenditure in the remainder of the 2015 to 2017 period.
Furthermore, the carrying costs of the Tanzania LNG project are “comfortably manageable” with around only $40 million of spending across 2H 2015 and 2016, it added.
LNG World News Staff; Image: Ophir Energy