British natural gas explorer Ophir Energy Plc is now seen as a takeover target as its limited cash continues to prevent its ability from developing explored assets on its own.
London, England-based fund manager Will Ripley, who helps overseeing $330 million that includes Ophir shares at Guinnes Atkinson, said in a statement during a telephone interview that the size that Ophir, with natural gas assets in Africa, has makes it hard for the company to develop such assets without help, logically expecting the energy firm to turn into a takeover candidate.
Ophir saw a 27% drop in its shares from a September high after it forecasted short of money needed for drilling projects this year. The plummet was also fueled when its Tanzania partner, BG Group Plc., decided to take slower development of a liquefied natural gas venture.
Shares of the London-based explorer continue to experience struggle when other shareholders Och-Ziff Capital Management Group and Mittal Investments Sarl reached agreement to sell their shares, data from Bloomberg revealed.
The potential takeover is expected to draw interest from producers such as Royal Dutch Shell Plc, which lost in a bidding battle to acquire East African explorer Cove Energy Plc.
Nick Cooper, Ophir's chief executive, did not comment on the matter through an outside spokesman.
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