Rockhopper, the North Falkland Basin oil and gas company, has entered into a conditional farm-out agreement with Premier Oil plc (“Premier”), regarding the Company’s interests in its petroleum licences in the North Falkland Basin
The agreement provides Premier with a 60 per cent interest in all of Rockhopper’s licence interests in the Falkland Islands and provides Premier with operatorship of the Sea Lion development. In addition, the agreement offers exploration upside in the Falkland Island s and options in Southern Africa.
Premier has agreed to pay Rockhopper an upfront cash consideration of US$231 million, payable on completion of the Transaction.
Sam Moody, Chief Executive of Rockhopper, commented:
“I am delighted that we have been able to secure such a high quality partner for our work in moving the Sea Lion development forward – Premier have an outstanding track record in developing and running producing assets and also have significant international experience. This is an excellent transaction for the company and its shareholders. It helps crystallise the value of our discoveries in the North Falkland Basin area centred on the Sea Lion field, as well as providing the funds to examine further the remaining potential of our acreage in the region. The transaction also presents the opportunity to pursue other exploration prospects in countries where there are geological similarities to the Falkland Islands and where our sub-surface skill sets can potentially create additional value. We are very much looking forward to beginning our work with Premier.”
Offshore Energy Today Staff July 12, 2012