Oil and gas company Ophir Energy Plc said Jan. 15 full-year production exceeded its own forecast, a day after it rejected Indonesian oil and gas group Medco Energi Internasional Tbk PT's potential buyout offer.
Ophir, which historically focused on Africa, has of late been concentrating on Asia, purchasing some assets from Australian peer Santos Ltd. last year.
The Southeast Asian assets performed better than expected and have returned cash flow of about $110 million in 2018, or about half the initial purchase price, interim CEO Alan Booth said, adding that the company was well positioned to generate significant free cash flow going forward.
Ophir's total daily production averaged 29,700 barrels of oil equivalent per day (boe/d) in 2018, 8% ahead of its own estimates. It also forecast daily production for 2019 to be in line with the previous outlook of 25,000 boe/d.
The company expects to maintain operating expenses for the year at $12 per boe, due to the low cost and cash generative nature of its expanded production base.
However, 2019 costs are expected to be slightly higher at $16 per boe, the company said blaming the jump on maintenance works at its Kerendan and Bualuang fields in Indonesia and Thailand. Earlier this month, the company was denied extension of the block license for its Fortuna liquid natural gas project in Equatorial Guinea after the firm failed to scrape together enough cash for the venture.
A unit of Indonesia's Medco Energi had swooped in with an all-cash takeover offer for the 15-year old energy company, but Ophir rejected the offer on Jan. 14 saying it "undervalues" the firm.