Extracts from RNS
Rockhopper, the North Falkland Basin oil and gas company, is pleased to announce that it 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 “Transaction”).
Highlights of the Transaction
— Premier to acquire 60 per cent. of Rockhopper’s interests in its North Falkland Basin licences
o US$231 million upfront cash payment on completion of transaction
o US$722 million Sea Lion development carry (net to Rockhopper)
o US$48 million exploration carry (net to Rockhopper)
The Rockhopper Board believes the Transaction with Premier delivers on its key objectives:
— Rockhopper will be fully funded on its share of the Sea Lion development through the development carry and standby financing arrangement provided by Premier – with the option to secure third party financing in place of the standby financing arrangement, if Rockhopper so chooses
— Rockhopper gains an aligned and experienced partner and operator in Premier with significant experience in analogous operating environments and developments utilising FPSOs
— Rockhopper retains significant exposure to the upside in the North Falkland Basin through its residual 40 per cent interest
— Significant exploration upside through the AMI together with the exploration carry of US$120 million (US$48 million net to Rockhopper)
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.”
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