FIG Approves Rockhopper, Premier Farm-Out Deal (Falkland Islands)

Rockhopper, the North Falkland Basin oil and gas exploration company, has received formal approval from the Falkland Islands Government (FIG) and both relevant licensees to the farm-out agreement with Premier Oil plc.

The Executive Council of The Falkland Islands Government has approved changes to the Company’s production licence interests held in the Falkland Islands to permit Premier to acquire a 60 per cent interest in all of Rockhopper’s licence interests in the Falkland Islands. Also, Premier has been given consent to take over operatorship of the Sea Lion development.

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.

“Formal completion of the farm-out process is anticipated shortly, when a further announcement will be made,” Rockhopper said in a press release.

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Offshore Energy Today Staff, October 12, 2012