Ophir to buy exploration licences in Indonesia from Niko Resources

Mon Oct 27, 2014 5:13am EDT
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LONDON Oct 27 (Reuters) - Oil explorer Ophir Energy has agreed to buy interests in seven deepwater production-sharing contracts in Indonesia from Niko Resources , building on Ophir's foray into the south-east Asian market.

Ophir, which is normally Africa-focussed, has agreed to pay $31 million once the is completed and up to another $56 million depending on drilling success at four of the projects, the company said in a statement.

The seven fields spanning 21,500 square kilometres hold prospective resources of more than 3 billion barrels of oil equivalent.

Once the deal is finalised, Ophir will operate six of the seven fields and grow its total exploration acreage by 40 percent.

"This transaction with Niko Resources provides one new country entry but access to three new core areas," Ophir Chief Executive Nick Cooper said.

The London-listed company has separately made a conditional takeover proposal for Salamander Energy, an oil explorer with assets in Indonesia and other south-east Asian markets. (Reporting by Karolin Schaps; editing by Susan Thomas)