Business
Heads of Terms with Navitas to farm-in to Sea Lion
Heads of Terms with Navitas to farm-in to Sea Lion.
About this update from Rockhopper Exploration Plc
[{"type":"text","content":"\n \nRNS Number : 9149Y Rockhopper Exploration plc 07 January 2020 \n\n7 January 2020\nRockhopper Exploration plc\n(\"Rockhopper\" or the \"Company\")\n \nHeads of Terms with Navitas Petroleum to farm-in to the Sea Lion project and associated amendments to existing agreements with Premier Oil\n \nRockhopper Exploration plc (AIM: RKH), the oil and gas exploration and production company with key interests in the North Falkland Basin, is pleased to announce that Rockhopper and Premier Oil Exploration and Production Limited (\"Premier\") have signed a detailed Heads of Terms with Navitas Petroleum LP (\"Navitas\") to farm in for a 30 per cent interest in the Sea Lion project (the \"Transaction\"). In addition, Rockhopper and Premier have agreed certain amendments to their existing commercial arrangements.\n \nHighlights\n \n· Working interests aligned across the Sea Lion licences PL032, PL004b and PL004c: Premier 40% (Operator); Rockhopper 30%; Navitas 30% \n \n· Adds additional strength to the Sea Lion joint venture which Rockhopper believes will increase the likelihood of a successful senior debt project financing for the Sea Lion Phase 1 development\n \n· Rockhopper's costs for the Phase 1 development (not met by senior debt) to be met by a combination of carry and loans from Premier and Navitas from 1 January 2020 to Phase 1 Project Completion (estimated to occur 9-12 months after first oil)\n \n· Greater alignment and simplified commercial arrangements across the joint venture\n \n· Rockhopper maintains material share of Phase 1 project NPV, a significant 30% interest in Phase 2 Sea Lion development, and additional upside from the Isobel-Elaine area (PL004a)\n \n· Contingent consideration payable to Rockhopper by Premier and Navitas of up to US$48 million related to future phases of development in the North Falkland Basin\n \n· Finalisation of a Sale and Purchase Agreement is expected during Q1 2020 (\"SPA Signing\") with completion subject to satisfaction of certain conditions including regulatory approval, expected in Q2 2020 (\"Farm-in Completion\")\n \nSamuel Moody, CEO of Rockhopper, commented:-\n \n\"This is a very important mil...