North Falklands oil explorer Rockhopper Exploration today completed its 60 percent farm out deal with Premier oil for its 356 million barrel discovery.
Upon receipt of the upfront cash payment of $231 million from Premier, Rockhopper will have net cash available of approximately $270 million.
Its going to be a long wait for first oil from the Falklands, with an anticipated production date of Q3 2017, 5 years away!
However, in the meantime investors can look forward to a minimum 3 drill exploration programme in the Falklands in 2014 to hopefully add further resources to its acreage.
Its been a dreadful few months for Rockhopper investors with the shares halving in 2012 on the muted response to the Premier oil deal. The completion of the deal at least gives shareholders hope of significant future oil revenues, but the long wait is a frustration and for now additional success with the drill bit will be key to reignite the share price in the shorter term.
Contrarian Investor UK