Medco prices potential Ophir bid at $440 mln

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Indonesian oil and gas company Medco Energi has informed Ophir Energy of the details on the potential offer.

Ophir said in its statement on Friday that in the light of market developments and recent news related to Ophir, Medco has written to the Board of Ophir today indicating that, should an offer be forthcoming, shareholders of Ophir would be entitled to receive 48.50 pence for each Ophir share.

The offer, which would total $439.8 million, would represent a 46.1 percent premium to the closing price of 33.2 pence per Ophir share on December 28, 2018.

Medco added that the notice “does not amount to a firm intention to make an offer,” adding that there is no certainty that any offer will be made.

A major recent development affecting Ophir Energy was the decision by the Equatorial Guinea Ministry of Mines and Hydrocarbons to deny the extension the Block R licensee containing the Fortuna gas discovery.

Ophir intended to use the resources from the Fortuna discovery to develop its Fortuna FLNG project.

As negotiations between Medco and Ophir continue a number of potential outcomes with respect to our Fortuna asset are under consideration.

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