JAKARTA (RambuEnergy.com) – Ophir Energy Plc, a UK-based oil and gas company, has set aside capital expenditure of US$150 million for 2019 to fund a number of oil and gas projects including oil and gas projects in Indonesia.
“The majority of the spending for 2019 (approximately $110 million) is development and production expenditure focused on growing our production and cash flow, including both Bualuang and Madura (Meliwis development),” Ophir said in a statement.
The balance of spending, it said, is provided for exploration, predominantly exploration commitments as the company manages its exit from its deepwater portfolio.
The company is seeking to reduce those commitments further where possible, it noted.
The capex assumes an average Brent price of $61 per barrel (bbl).
The company’s daily production for 2019 is forecast in line with previous guidance at 25,000 boepd.
The company has two oil price hedges in place for 2019: for the period to 6 September 2019, the company sold a Brent swap at approximately $70 per barrel and purchased a Brent call at approximately $78 per barrel for 2,000 bpd; and for the full calendar year 2019, the company sold a Brent swap at approximately $56 per barrel and purchased a Brent call at approximately $66 per barrel for 2,000 bpd.
Operating expenditure per barrel is expected to be US$16 per barrel of oil equivalent (boe), an increase on the previous year due to workover drilling on the Kerendan field and ESP replacements for three wells on the Bualuang field.
Its year-end net debt is forecast at US$70 million, below its previous guidance of $105 million.
Its cash and cash equivalents, and gross liquidity, at year end 2019 are forecast at $230 million.
This assumes the company reduces its total debt exposure by 2019 year-end to $300 million giving rise to a 2019 leverage ratio (gross debt/cash flow from operations before working capital adjustments) of 1.5 and 2019 year-end gearing ratio (gross debt divided by gross debt plus equity) of 30%.
On a net debt basis, the leverage ratio is forecast at 0.5 and the gearing ratio at 10%, demonstrating conservative leverage. (*)
Written by Staff Writer, edited by Roffie Kurniawan (email: email@example.com)