Rockhopper, the North Falkland Basin oil and gas exploration company, has announced the completion of the farm-out agreement with Premier Oil plc.
Premier has agreed to pay Rockhopper an upfront cash consideration of US$231 million, payable on completion of the transaction. Furthermore, Premier will, subject to field development plan approval, provide $722 million.
Upon receipt of the upfront cash payment of $231 million from Premier, Rockhopper will have net cash available of approximately $270 million.
Rockhopper and Premier have been working closely together since the farm-out was announced in July and look forward to continuing that close relationship to deliver further success on Sea Lion and the wider opportunities.
The companies expect to achieve first oil in Q3 2017. Detailed concept selection is expected by the end of Q2 2013 when Rockhopper expects to provide a fuller development update.
Rockhopper says it has been working closely with Premier in order to refine the exploration potential of the licences and high-grade exploration prospects for drilling in the wider Falklands area. Discussions regarding well selection and a 2014 drilling campaign are advancing well, the company has informed.
In addition, the Company is investigating a new ventures strategy based around accessing exploration-focused opportunities outside of the Falklands area which harness Rockhopper’s proven exploration capabilities and expertise.
Sam Moody, Chief Executive of Rockhopper , commented: “With the completion of this transformational deal, Rockhopper is now fully funded to first oil from Sea Lion in 2017 and for a three well exploration programme targeted for 2014. Good progress has been made with Premier on advancing both the Sea Lion project itself and on high-grading the wider prospectivity in the region. We are also looking forward to executing a focused new ventures effort outside the Falklands which plays to our strengths as a frontier explorer.”
Simon Lockett, Chief Executive of Premier , commented: “We are delighted to complete this agreement with Rockhopper. As operator, we will progress Sea Lion to final development sanction and work closely with the Rockhopper team to mature the exciting exploration opportunities in our shared acreage.”
[mappress] Source: Rockhopper, October 19, 2012