Rockhopper Exploration down on disposal news

AIM-listed oil and gas company Rockhopper Exploration (LON:RKH) has seen its share price fall by 8.72% to 14.76p (as of 14:50 GMT) after it provided an update on the disposal of its Egyptian operations. United Oil and Gas is performing a funding round to acquire Rockhopper Egypt and the transaction will be completed afterwards.

Of the agreed $16 million compensation, $11.5 million will be payable in cash and the remainder in shares. Since the share based payments constitute 18.5% of the enlarged ordinary capital, it was also agreed the Rockhopper will be able to appoint a director for as long as their share of the company exceeds 10%.