BUZZ-Ophir Energy: Shell/BG LNG behemoth bodes well for co-SVM

** Proposed tie-up of top LNG producers Shell (LSE: RDSB.L - news) & BG a likely positive for Ophir Energy (Other OTC: OPGYF - news) whose shares are up 8.1 pct since news of the deal

** Ophir has a focus on east Africa - a significant prospect for export of LNG - says Neil Veitch, manager of the SVM UK Opportunities Fund

** Ophir initially discovered offshore gas in Tanzania 2010-2011, which led to BG partnering with them there; east Africa key given size of natural gas discoveries there & proximity to Asia's major LNG consumers

** Having Shell as a partner relative to BG could provide more certainty around Ophir's project timeline given Shell's far greater financial resources, Veitch says; PM notes risk for a little pressure on independent BG's balance sheet over time

** To fully exploit the potential for east African gas an LNG facility is required to allow shipment to Asia; Shell undoubtedly has the financial clout to finance this & Ophir could 'piggy-back' off it, Veitch says

** Shell/BG merger vote of confidence in LNG (BG has some of world's most ambitious LNG projects); concerns around LNG arise from it being a relatively immature industry with uncertain pricing dynamics (& Asia's LNG markets reflect oil price rout)

** PM holds Ophir by way of co's recent acquisition of Salamander Energy in all-share deal (SVM originally held latter co) (RM (LSE: RM.L - news) : tricia.wright1.thomsonreuters.com@reuters.net)