African oil explorer listed on the London Stock Exchange in July,since then it's been on a rather tumultous ride(downwards hitting low 180's in early August).
Having heard the name in association with comments such as well run, capable management, interesting African exposure several years ago it piqued my interest when an IPO was announced. It came and went whilst I was on holiday so, fortunately, didn't pursue an active interest - did any stockopedes invest at the outset?
The company:
“Ophir has 17 licences comprising several ‘play types’. These prospects are found in Tanzania, Madagascar, Cong (Brazzaville), Senegal/Guinea Bissau, Equatorial Guinea, Gabon, Saharawi ADR, Somaliland .
http://ophir-energy.com/
Latest Annual Report at:
http://ophir-energy.com/UserDir/Documents/Annual-Reports/OECL%202010%20Annual%20Report%20EXECUTED.pdf
Latest Presentation at:
http://ophir-energy.com/UserDir/Presentations/Downloads/45/Africa%20Gas%20Summit%20FINAL%202011-04.pdf
While it has made a number of discoveries – in Tanzania(Aex's neighbour?) and in Equatorial Guinea – many of Ophir’s assets are un-proven oil frontiers.
The IPO funds are apparently earmarked for an eleven well drill programme (lasting 18 months) which sounds pretty active.
Recent news:
8th August: Holding in Company: - Mittal Investments S.a.r.l. 16.015%
23rd August 2011: Ophir Energy rises amid sector rally
http://www.ft.com/cms/s/0/b3a28fb4-cdb0-11e0-bb4f-00144feabdc0.html#axzz1WWnHZ3j7
Stock Targets pencilled in by various houses range from 290p (JPM) to 510p(CS)
I see that it is up 4.4% today to 235, so well off it's lows for August. But still someway off the JPM price target.
Being one who focuses more on underlying commodity type / geographical exposure when determining my investments in the resource sector (the mix of licences sees interests in a variety of African nations so the assets all not in one basket approach springs to mind) rather than engaging in the in depth analysis of P2/P10/P50 reserves because there are far more knowledgeable and capable people out there on this front, I thought I'd mention this company in passing to see where it all takes us.
I commend this very basic summary to the house.....
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Interim results out today
http://moneyam.uk-wire.com/cgi-bin/articles/201108310827273014N.html
Operational highlights:
Tanzania:
·Completion of three-well operated drilling campaign in Tanzania in April 2011 resulting in three significant gas discoveries: Pweza-1 and Chewa-1 in Block 4 and Chaza-1 in Block 1
·5,000km2 of new 3D seismic was acquired on Blocks 1, 3 and 4
·Second multi-well drilling campaign will commence under the Operatorship of BG in the fourth quarter of 2011
·Farm in agreement to acquire a 70% operated interest in the coastal East Pande Block situated to the east of
Blocks 3 and 4 in Tanzania
Gabon:
·Farm out with Petrobras in Mbeli and Ntsina Blocks
Management bullish on future prospects as it enters a high impact drilling phase.
i was interested that they suggest a forthcoming backlash against shale gas: burning tapwater, subsidence, the landscape peppered with wellheads etc. & therefore investment money flooding towards LNG projects. However, about the prospectivity of their actual projects, the incomprehensible seismic images etc, i'm unable to give any enlightenment: but it piles a whole lot of political risk on top of a whole lot of technical.
the last page of their recent presentation shows a plucky yellow ball [representing ophir] playing seesaw with a surprised-looking big steel ball [big oil].. and winning! ..apparently a pitch to the less technically minded reader.
I believe they were presenting to analysts today and expected the presentation to be loaded onto their website.
http://www.ophirenergy.com/investors/releases-and-announcements/capital-markets-day-159/
Presentation not there yet :o(
I have only started to research Ophir due to the Dominion deal but on first look I think I will take thir shares .
I've only recently looked at this one myself as, until the IPO, they were fairly difficult to look into. Would be interested to hear the musings of the Oily experts such as EE, DJP, Repo et al on this one.
In reply to D1G3Y, post #3
That's because they cunningly placed it elsewhere...
http://www.ophirenergy.com/UserDir/Presentations/Downloads/52/OPHIR%20CAPITAL%20MARKETS%20PRESENTATION%20-%20web%20version.pdf
Looks interesting, although on first glance not having any production places returns entirely on explo success?
In reply to Fangorn, post #4
Fangorn
Theres quite a few notes around, as you can imagine given the recent listing. BoA ML, Jeffires, RBC and Canaccord.
All like the company for its strong position in a new growth area, especially witht he BG JV successes already.
I suspected as much DJP, on the multitude of post IPo notes.
Not seen any of them myself so not been able to draw any conclusions other than from my own limited investigations.
Good to hear that they all look favourably on Ophir.
http://www.proactiveinvestors.co.uk/companies/news/34595/ophir-energy-excites-analysts-and-investors-at-capital-markets-day-34595.html?
Broker forecasts:
Oriel reckons Ophir is worth 282 p
HSBC’s price target is 290 p.
Canaccord Genuity reckons 310p
Jeffries, a punchy 365p.
In reply to Fangorn, post #4
Very much too close to "home" for me to comment on this one. I'm afraid.
cheers
ee
Ophir Energy gets more land in Equatorial Guinea
http://www.sharecast.com/cgi-bin/sharecast/story.cgi?story_id=4624211
Ophir is believed to be in early stage talks with BP about a "farm out or farm in" deal in East Africa.
Rumour currently. Can't remember where I saw the link earlier, possibly sharecast.
In reply to Fangorn, post #11
Here..
http://www.telegraph.co.uk/finance/markets/marketreport/8959580/BP-rumoured-to-be-talking-to-Ophir-Energy.html
Wish I'd listened to my own musings and bought back when I fist introduced this one.
What a run it has had.
Courtesy of EE., on M&A thread,
http://www.telegraph.co.uk/finance/markets/marketreport/9109450/Market-Report-Ophir-firms-as-analysts-fuel-bid-speculation.html
And this run looks set to continue in my view as takeover fever grips the East African scene,
http://www.telegraph.co.uk/finance/markets/questor/9111748/Questor-share-tip-Ophir-is-a-hold-after-spectacular-run.html?
Questor share tip: Ophir is a hold after spectacular run
Full steam ahead....
http://www.sharecast.com/cgi-bin/sharecast/story.cgi?story_id=19970641
Result of Jodari-1 well in Block 1 offshore Tanzania
Exceeds estimates with 4.5tcf gas discovery...
http://www.investegate.co.uk/article.aspx?id=201203260700230179A&fe=1