Update re. farm-out agreement with Premier Oil plc

RNS Number : 5413O

Rockhopper Exploration plc

12 October 2012

 

Embargoed: 0700hrs, 12 October 2012

Rockhopper Exploration plc

("Rockhopper" or the "Company")

Update re. farm-out agreement with Premier Oil plc

Rockhopper, the North Falkland Basin oil and gas exploration company, announces that it has received formal agreement 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:

·      the assignment of 60% of Production Licences PL023, PL024, PL032 and PL033, and 60% of Rockhopper's interest in PL003 and PL004, to Premier Oil Exploration & Production Ltd; and

·      the approval of Premier Oil Exploration & Production Ltd to become operator of Production Licences PL023, PL024, PL032, PL033 and area PL004b of Production Licence PL004.

Formal completion of the farm-out process is anticipated shortly, when a further announcement will be made.  

Enquiries:

Rockhopper Exploration plc	Tel. [phone]
Sam Moody, Chief Executive	(via M: Communications)
Canaccord Genuity (Nomad and Joint Broker)	[phone]
Henry Fitzgerald-O'Connor / Rob Collins
M: Communications	[phone]
Patrick d'Ancona / Ben Simons

Notes to Editors:

Rockhopper was established in February 2004 with a strategy to invest in and carry out offshore oil exploration to the north of the Falkland Islands. The Company floated on AIM in August 2005 with four offshore production licences: PL023, PL024, PL032 and PL033 which cover approximately 3,800 sq. km. Rockhopper has further smaller interests in licences PL003, PL004a and PL004c, which are operated by Desire Petroleum plc. Additionally, the Company has a significant interest in licence PL004b which contains the extension to the Sea Lion Field as well as the Beverley, Casper and Casper South discoveries.

An extensive work programme was carried out over a number of years on the licences operated by Rockhopper. This has included 2D and 3D seismic and controlled source electromagnetic mapping. In February 2010, the Ocean Guardian drilling rig arrived in Falkland waters to carry out a multi-well drilling campaign. Rockhopper drilled an exploration well on Sea Lion during April and May 2010, the result of which was the first oil discovery and Contingent Resource in the North Falkland Basin. The Sea Lion discovery was successfully tested during September 2010 and June 2011 and was the first oil to flow to surface in Falkland Islands waters. Rockhopper's drilling campaign lasted from 16 April 2010 to 8 January 2012 and resulted in seven successful wells of the ten drilled, with three oil discoveries, three gas discoveries, multiple successful Sea Lion appraisal wells and a successful appraisal well on Casper.

In July 2012 Rockhopper announced that it had entered into a conditional farm-out agreement with Premier Oil plc, whereby Premier agreed to acquire 60 per cent. of Rockhopper's interests in its North Falkland Basin licences. Formal completion of the farm-out process is anticipated shortly.

Rockhopper Exploration plc www.rockhopperexploration.co.uk 

 

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