Business
Farm-in Agreement
Farm-in Agreement.
About this update from Rockhopper Exploration Plc
[{"type":"text","content":"\n \nRNS Number : 6036P Rockhopper Exploration plc 03 October 2013 \n \n\nROCKHOPPER EXPLORATION PLC\n(\"Rockhopper\")\n \nFarm-in to PL004a and PL004c, North Falkland Basin\n3 October 2013\n \nRockhopper Exploration and Premier Oil plc (\"Premier\") have signed a Heads of Agreement with Falkland Oil and Gas Limited (\"FOGL\") to farm-in to licences PL004a and PL004c, conditional on the completion on this morning's announced combination of FOGL and Desire Petroleum plc (\"Desire\").\n \nUnder the terms of the agreement with FOGL, its share of costs for an exploration well on the Isobel/Elaine prospect (PL004a) and an exploration well on the Jayne East prospect (PL004c) will be carried by Rockhopper and Premier. Rockhopper estimates these wells will target Pmean gross STOIIP of 1,078 mmbbl and 289 mmbbl respectively.\n \nIn accordance with a prior agreement with Premier, Rockhopper and Premier will split the revised equity interests in the ratio 40/60. Under the terms of the same prior agreement, Premier agreed to carry up to US$48 million of Rockhopper's share of three exploration wells in the North Falkland Basin. This was originally intended to apply only to the licence interests held at the time of the Sea Lion farm-out but Rockhopper and Premier have agreed to extend its terms. As a result, while the overall cap will remain at US$48 million, Rockhopper can elect to be carried for its original interest plus up to US$6 million associated with the additional working interests it will acquire as a result of the farm-in. \n \nThe revised ownership in the two licences on completion of the farm-in will be as follows:\n \n\n\n\n\n\n\n\nPL004a\n\n\nPL004c\n\n\n\n\n\n\n\nOld\n\n\nNew\n\n\nOld\n\n\nNew\n\n\n\n\nFOGL/Desire\n\n\n92.5%\n\n\n40%\n\n\n75%\n\n\n40%\n\n\n\n\nPremier\n\n\n4.5%\n\n\n36%\n\n\n15%\n\n\n36%\n\n\n\n\nRockhopper\n\n\n3%\n\n\n24%\n\n\n10%\n\n\n24%\n\n\n\n\n \nThe farm-in is subject to completion of FOGL's combination with Desire and customary Falkland Island Government approvals. \n \nSam Moody, Chief Executive, commented:\n \n\"We are delighted to have agreed this farm-in, which allows Rockhopper access to a much larger working interest in what we regard as highly prospective acreage. Situated in the North Falkland Basin, it includes the Isobel/Elaine and Jay...