“We are pleased to announce a recommended transaction with Medco. The transaction delivers upfront value in cash to Ophir shareholders for the strategy that Ophir directors set out in September 2018,” Ophir chairman Bill Schrader said in the press statement.

Medco CEO Roberto Lorato said the acquisition would further strengthen Medco’s position as a leading private oil and gas player in Southeast Asia.

“The combined business will hold a more balanced regional portfolio of producing and development assets. It is better able to withstand macroeconomic volatility and will have meaningful production and cash flows to improve Medco’s credit position,” he said in the same statement.

Ophir shareholders will be entitled to receive for each Ophir share at 55 pence in cash.

Previously, global energy think tank Wood Mackenzie (WoodMac) research director Angus Rodger said if Medco managed to acquire Ophir, it would place the company as the seventh-biggest private energy producer in Southeast Asia, above BP and just behind Repsol and Total.

“Ophir's current output of 25,000 barrel oil equivalent per day [boepd] combined with Medco's stated 2018 target of 85,000 boepd would take it to 110,000 boepd,” he said in a recent email. (bbn)

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