Africa-focused oil explorer Ophir Energy (OPHR) has agreed to sell half its 40 per cent interest in its Tanzanian gas discoveries for $1.29bn (£805m) to a subsidiary of Temasek, the state-backed Singapore investment company.
The sale, assuming it successfully concludes in the first quarter of next year, implies a positive read-across valuation of roughly $2.6 per barrel of oil-equivalent resources (boe) for the 15 trillion cubic feet of gas already discovered. This is somewhat higher than prior consensus valuations for Tanzania of between $1.5 and $2.0 per boe.
It also means Ophir is now well funded for its exciting 2014 exploration programme across east and west Africa; the group already had net cash balances of $750m at the end of September.
