Ophir Announce Full Year Results for the year ended 31 December 2017

    Financial Highlight
Unit operating costs (excluding Sinphuhorm) decreased 4% to $12.79 per boe (2016: $13.38 per boe) Net funds flow from production increased 46% to $90 million1 (2016: $62 million), equivalent to $21.30 per boe (2016: $10.53 per boe) Right-sized the business with further reductions of G&A by reducing headcount at the London Head Office along with reductions of expatriate employees. G&A costs reduced by 60% over a three-year period. Net cash at year-end of $117 million (2016: $160 million) Completed refinance of our $250 million reserve based lending facility ending the year with gross liquidity of $427 million2 (2016: $371 million). Nick Cooper, Chief Executive Officer, commented.
“2017 saw Ophir take important steps to adapt and right-size the business, meet key operational targets and replenish our exploration portfolio. Nevertheless, we are disappointed to have not yet achieved the Fortuna project FID despite having made significant progress on the project. The rebalancing of our portfolio and our capex prioritisation away from its prior primary exploration focus has seen Ophir approach sustainability. In 2017 we have grown reserves by 13%, increased net funds flow from production by 46%, reduced gross G&A by a further 17%, increased liquidity by $57 million and by year end we had delivered NAV growth of 6.4%.
“Our 2018 priorities are threefold: to deliver the Fortuna project FID; to further monetise our significant contingent resources; and to grow production and cash flow. Ophir operates a long life, low cost production base and has a strong balance sheet. We sanctioned a fourth phase of development on our Bualuang oil field which will grow production in 2018-19, agreed an increased gas price on our Kerendan field and are in negotiation to double production from this asset by 2020. The Group is well-positioned to take advantage of the opportunities that this down cycle has presented by growing our cash flows and capturing excellent options in proven hydrocarbon systems, as shown by our recent block awards in Equatorial Guinea and Mexico.”
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