Questor share tip: Ophir Energy a buy once more FTSE 250-listed Ophir is an exploration-only company with no revenue coming through the door. This sparked talk of a rights issue and prompted some significant investors to sell down their stakes. In February, Lakshmi Mittal, who first bought into the business before its initial public offering, sold half of his remaining stake and now has a holding of just 3pc. In 2009, he owned 21pc of the group. However, the funding boil has been lanced - at least for now. In March, the inevitable happened and Ophir unveiled plans for a £553m placing and rights issue to pay for its upcoming drilling programme. Yesterday, the group announced another success in its offshore drilling programme in Tanzania. A gas discovery at its Ngisi well resulted in the group increasing its estimate of recoverable resources at the site to 4.5 trillion cubic feet of gas. Its previous estimate was 3.7 trillion cubic feet. A number of major wells are going to be drilling in the next six to 12 months, with some significant drilling in Tanzania and Gabon. Results from this could be positive catalysts for the share price. Gabon is very interesting from a geological point of view, as the group is targeting pre-salt formations. Pre-salt areas are where the major discoveries in the Santos Basin offshore Brazil have been made by Petrobras and BG Group. There is evidence to show that the geology from this basin is contiguous with that in West Africa and some analysts have predicted "volume potential here is measured in the billions of barrels." There is no doubt that the basins in which Ophir is drilling contain lots of gas and the group has a great portfolio of assets. The medium-term funding issue has been resolved, but the group is far from fully funded up to the production level. This is why any news on "farm-outs" will be significant. A "farm-out" allows a third party to buy into an oil or gas discovery, reducing the execution risk and raising funds for the next stage of development. Questor is usually reticent about recommending companies with no revenues, especially when the business is valued by the market at more than £2.1bn. This obviously means there is a degree of risk involved in this investment. However, the quality of the group's gas finds is exceptional. After the recent share price plunge, Questor reckons the shares a buy once again for those willing to take the risk of investing in a company with no cashflow.