Oil & Gas merger on the cards in the Falkland Islands

Rockhopper and Falkland Oil & Gas Limited (FOGL), two oil and gas companies with assets offshore the Falkland Islands, are contemplating a merger.

The boards of the two companies have reached agreement on the terms of a recommended all-share merger to be effected by means of a Court-sanctioned scheme of arrangement.

According to a joint statement by the two firms, the merger would create the largest North Falkland Islands licence and discovered resource holder with a material working interest in all key licences.

Under the agreement, the scheme shareholders would receive 0.2993 Rockhopper shares for each share they own in FOGL. According to FOGL, the merger values entire issued and to be issued share capital of FOGL at approximately £57.1 million, and each FOGL Share at 10.70 pence. This represents an 11 per cent premium to FOGL’s closing share price of 9.60 pence on November 23, 2015.

Commenting on the potential merger, Pierre Jungels, Chairman of Rockhopper said: “This transaction enhances Rockhopper’s position in the Falkland Islands, with the largest regional acreage position and most discovered resources, coupled with a strong balance sheet. By combining Rockhopper and FOGL, we shall create a more coherent licence ownership structure in the North Falkland Basin, driven by a technically accomplished organisation with a strong exploration and appraisal track record, well positioned to access the opportunities in this emerging hydrocarbon province.”

He said that the Rockhopper Board believed the merger would add further momentum to the on-going work to progress the development of discovered resources in the area towards commerciality.

Upon the merger becoming effective the current shareholders of Rockhopper will own approximately 65 percent of the combined group’s issued share capital and FOGL Shareholders will own approximately 35 percent.

John Martin, Chairman of FOGL said: “FOGL has built a significant portfolio of discovered resources in the Falkland Islands region despite the challenging market conditions. The enhanced scale, capabilities and financial position of the merged FOGL and Rockhopper entity will provide FOGL Shareholders with a platform from which to bring these quality resources into development. As a result, the FOGL Board intends unanimously to recommend that FOGL Shareholders accept the proposed transaction.”

The deal is subject to, among other things, approvals by shareholders of both companies, and the court’s approval of the scheme arrangement.

Offshore Energy Today Staff

 

 

Share this article

Follow Offshore Energy Today

Events>

<< Dec 2019 >>
MTWTFSS
25 26 27 28 29 30 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31 1 2 3 4 5

Africa Oil Week 2020

For over 25 years Africa Oil Week has been the meeting place for Africa’s most senior E&P stakeholders.

read more >

CERAWeek 2020

 Each year, CERA clients gathered for a few days in Houston…

read more >

Offshore Technology Conference (OTC) 2020

The Offshore Technology Conference (OTC) showcases leading-edge technology for offshore drilling, exploration…

read more >

2020 EXPLORATION AND PRODUCTION STANDARDS CONFERENCE ON OILFIELD EQUIPMENT AND MATERIALS

The development of consensus standards is one of API’s oldest and most successful programs.

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply