Ophir Energy (OPHR) cut its half-year loss and reported another big rise in its contingent resources. But investors will need patience - due to uncertainties over proposed farm-out agreements, rig issues in Gabon and ongoing negotiations with the Tanzanian government.
The group's principal focus is now on the commercialisation of its Tanzanian liquefied natural gas (LNG) development with joint venture partner BG Group (BG.). Successful appraisal work resulted in an increase in estimates of total recoverable gas resources to 15 trillion cubic feet (tcf) - equivalent to 2.5bn barrels of oil. Encouraging, flow tests at the Jodari and Mzia wells have aided pre-planning for development of the LNG plant and BG is moving closer to finalising a commercial drilling programme.