Ophir cuts spending to cope with lower oil prices

By Karolin Schaps

LONDON (Reuters) - Oil explorer Ophir Energy (OPHR.L), which completed the acquisition of rival Salamander Energy this month, returned to profit last year and said it would cut spending by $250 million (168 million pounds) over two years to deal with low oil prices.

The London-listed company reported a full-year operating profit of $294.4 million, compared with a $307.6 million loss the previous year, as it benefited from selling stakes in some of its Tanzanian fields.

Ophir, like its industry peers, is cutting capital spending following a halving in oil prices since last June.

The company, whose main assets are in Africa, has reduced its capex programme by around 50 percent year on year to $250-300 million, it said on Thursday.

Other savings will come from reducing overhead costs, which will include some job cuts, chief executive, Nick Cooper, said.

"Ophir has doubled its exploration footprint during 2014 but only has $100 million of committed exploration and appraisal spending in the portfolio between now and 2017," he said.

Ophir shares were trading 2.7 percent higher at 9:25 a.m.

Ophir's 267 million pound takeover of Salamander Energy has given the oil explorer a firmer footing in southeast Asia and a number of producing assets.

It said the Sinphuhorm gas field and Bualuang oil field in Thailand alone are expected to generate around $150 million in cash this year.

Ophir has been trying to grow by acquisition for a while, having two takeover offers rejected by Premier Oil last year.

(editing by Jason Neely and Jane Merriman)