Bloomberg: Ophir Energy Said to Receive Merger Interest Amid Oil Slump

Ophir Energy Plc, the U.K. oil and gas explorer active in Africa, has received informal takeover and merger interest from several parties as a slump in crude oil prices forces independent operators to consolidate, according to people with knowledge of the matter. The shares rose the most in seven months.

London-listed Ophir, which bought Salamander Energy Plc earlier this year, has attracted interest from both companies and financial investors, the people said, asking not to be identified as the information is private. The company is evaluating the proposals, but deliberations are at an early stage and it may decide against a deal, the people said.

Independent oil explorers have been battered as concerns mount about their ability to withstand the decline in oil prices. Unlike several of its peers, Ophir has low debt levels and net cash of almost $400 million at the end of June as well as assets in Africa and Southeast Asia, which makes it an attractive target for potential buyers or partners, the people said. MORE