Business
Completion of farm-out agreement with Premier Oil
Completion of farm-out agreement with Premier Oil.
About this update from Rockhopper Exploration Plc
[{"type":"text","content":"\n \nRNS Number : 0515P Rockhopper Exploration plc 19 October 2012 \n\nEmbargoed: 0700hrs, 19 October 2012\n \nRockhopper Exploration plc\n \n(\"Rockhopper\" or the \"Company\")\n \nCompletion of farm-out agreement with Premier Oil plc\n \nRockhopper, the North Falkland Basin oil and gas exploration company, is pleased to announce the completion of the farm-out agreement with Premier Oil plc (\"Premier\"). \n \nCompletion of the farm-out is a significant milestone for Rockhopper. The development carry and optional standby financing provided by Premier position Rockhopper as fully funded for its share of the Sea Lion development through to first oil and beyond.\n \nUpon receipt of the upfront cash payment of $231 million from Premier, Rockhopper will have net cash available of approximately $270 million. \n \nRockhopper 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. \n \nRockhopper can confirm that, whilst considerable work remains, the companies are aligned on timing and cost 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.\n \nRockhopper is 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. \n \nIn 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. \n \nSam Moody, Chief Executive of Rockhopper, commented:\n \n\"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. \n \nGood progress has been made with Premier on advancing both the Sea Lion project itself and on high-grading the wider prospectivity in the region. \n \nWe are also looking forward to executing a focused new ventures effort outsid...