Rockhopper Exploration plc Sea Lion farm-in update (4010L)
April 30 2020 - 2:00AM
UK Regulatory
TIDMRKH
RNS Number : 4010L
Rockhopper Exploration plc
30 April 2020
30 April 2020
Rockhopper Exploration plc
("Rockhopper" or the "Company")
Sea Lion farm-in update
Rockhopper Exploration plc (AIM: RKH), the oil and gas
exploration and production company with key interests in the North
Falkland Basin, is pleased to provide the following update in
relation to the previously announced Heads of Terms with Navitas
Petroleum LP ("Navitas") to farm into the Sea Lion project.
On 7 January 2020, Rockhopper and Premier Oil announced that a
detailed Heads of Terms had been signed with Navitas to farm-in for
a 30 per cent interest in the Sea Lion project (the "January Heads
of Terms"). Despite the current oil price weakness, all parties
remain committed to the finalisation of the definitive Navitas
farm-in agreement.
To reflect the good progress which has been made since the
January Heads of Terms were signed, the parties have agreed to
extend the exclusivity period to the earlier of (i) 31 December
2020; and (ii) execution of the definitive transaction document
(targeting late Q2 or Q3 2020), or until a decision by Navitas has
been made not to proceed with the farm-in.
In addition, the effective date of the farm-in proposed in the
January Heads of Terms will now be amended from 1 March 2020 to the
date on which the Falkland Islands Government approves Navitas
becoming a licencee (targeting late Q3 or Q4). In turn, Premier
will fund Rockhopper's share of the remaining pre-effective date
costs, with interest accruing at 12% per annum, which, on
completion of the farm-in, will be rolled into the Standby
Loan.
The previously announced Standby Loan (which will be available
from Premier to cover Rockhopper's share of production area licence
fees and any Capital Gains Tax liability ) will now attract
interest at 12% per annum (previously 15% per annum).
All other proposed terms in the January Heads of Terms remain
unchanged with Rockhopper's costs for the Phase 1 development (not
met by external debt and excluding licence fees, taxes, costs
incurred prior to 1 January 2020 and project wind down costs) from
the effective date to Phase 1 Project Completion (estimated to
occur 9-12 months after first oil) continuing to be funded by
Premier Oil and Navitas.
Once definitive documentation is reached, completion of the
farm-in will remain subject to agreed consents and approvals.
Rockhopper remains responsible for funding its share of costs
incurred prior to 1 January 2020.
Sam Moody, Chief Executive, commented: 'We are pleased to have
made significant progress on the farm in, and that all parties have
reinforced their commitment to its completion, despite the volatile
market conditions. Sea Lion remains a highly exciting project and
the farm in will underpin our ongoing efforts to move it towards
sanction. We look forward to updating shareholders further.'
Enquiries:
Rockhopper Exploration plc
Sam Moody - Chief Executive Officer
Stewart MacDonald - Chief Financial Officer
Tel. +44 (0) 20 7390 0234 (via Vigo Communications)
Canaccord Genuity Limited (NOMAD and Joint Broker)
Henry Fitzgerald-O'Connor/James Asensio
Tel. +44 (0) 20 7523 8000
Peel Hunt LLP (Joint Broker)
Richard Crichton
Tel. +44 (0) 20 7418 8900
Vigo Communications
Patrick d'Ancona/Ben Simons
Tel. +44 (0) 20 7390 0234
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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