Tanzania asset sale boosts value of Ophir Energy

By IVCPOST Staff Reporter

Oct 24, 2013 08:16 AM EDT

Oil and gas explorer Ophir Energy's plan to sell its assets in Tanzania caused the company's stock to rise by up to 9.2%. This was its largest gain in seven months. It was also the best performer on the Stoxx Europe 600 Oil & Gas Index as a result of the rise.

Ophir said it was in the process of selling down a part-interest in Blocks 1, 3 and 4 in Tanzania. However, the London-based firm said, "There is no certainty that this process will conclude successfully." According to Bloomberg, Ophir had been looking for partners to share the expenses in its exploration activities in Gabon, Kenya, Equatorial Guinea and Tanzania. The firm sought partners after the exploration was slower than what was forecasted.

Despite the drilling delays which had challenged Ophir's stock price, project operator BG Group had already discovered gas. The gas find would be enough for the company to begin construction of a liquefied natural gas plant in Tanzania.

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