Offshore Myanmar, where Ophir Energy (LON:OPHR) this week staked its first non-African acreage, is a potentially exciting frontier play, according to Deutsche Bank.
Analyst Lucas Herrmann highlights it has proven hydrocarbon potential both onshore and more recently via two gas developments, Schwe & Mya, in the shallow offshore.
Ophir was among a group of major oil companies that took up new blocks through a licensing round. The others included BG, Shell, Statoil, Total and Eni.
“With investment in the region prohibited by sanctions which were lifted in 2012, this represented the first opportunity for the Western oil companies to gain access. 20 blocks have been awarded across both shallow and deepwater acreage,” Herrmann said.
“We do not expect drilling in the near-term with the large blocks and under-explored nature of the area meaning that activity in the early years will focus on shooting seismic.”
Ophir has a 95% operated interest in the new Myanmar acreage. The exploration block covers around 10,000 square kilometres in the Rakhine basin, ‘on trend’ with a multi-TCF gas field.
Initially, Ophir will re-process existing 2D seismic and acquire 3D seismic data.
“We are delighted to have been provisionally awarded this new offshore licence in Myanmar where the licensing round was highly competitive with several major oil companies being awarded blocks adjacent to ours,” chief executive Nick Cooper said in a statement yesterday.
“Whilst this is our first licence award outside of Africa it is in keeping with our strategy of focusing on acquiring deepwater acreage with large footprints and significant running room.”
Source: Proactive Investors