Business
Resolution of Capital Gains Tax liability
Resolution of Capital Gains Tax liability.
About this update from Rockhopper Exploration Plc
[{"type":"text","content":"\n \nRNS Number : 7971V Rockhopper Exploration plc 18 December 2013 \n \n\n \n \n18 December 2013\n \nRockhopper Exploration plc\n(\"Rockhopper\")\n \nResolution of Capital Gains Tax liability\n \n \nRockhopper Exploration plc (AIM: RKH), the North Falkland Basin oil and gas exploration company, is pleased to announce that it has reached an agreement in principle with the Falkland Islands Government (\"FIG\") regarding the timing and quantum of the Capital Gains Tax (\"CGT\") liability due as a result of its farm out to Premier Oil of a 60 per cent equity interest in its Sea Lion discovery.\n \nFollowing extensive discussions, the parties have now agreed in principle that the total CGT payable is $146m with payment split into two tranches. The first payment, due immediately, equates to $42m, of which Rockhopper paid $39m in June 2013. The second payment equates to $104m and will now be paid at the same time as the first royalty payment to FIG from oil production at Sea Lion. The liability is to be settled in GB£ at the exchange rate prevailing at farm out completion of $1.6134/£. Further detail will be covered in the interim results which are anticipated to be released shortly.\n \nDocumentation of the above agreement will now commence, with a view to becoming effective by the end of January 2014.\n \nSam Moody, CEO of Rockhopper, commented: \n \n'I am pleased that we have now reached agreement with FIG and that the uncertainty over the quantum of CGT Liability is now resolved. This is an important commercial milestone for Rockhopper as we drive the Sea Lion development forward with our partner.'\n \nEnds.\n \n \nRockhopper Exploration plc\nTel: (via Vigo Communications) - 020 7016 9571\nSam Moody - Chief Executive \nPeter Dixon-Clarke - Finance Director\n \nCanaccord Genuity Limited (NOMAD and Joint Broker)\nTel: 020 7523 8000\nHenry Fitzgerald-O'Connor\n \nVigo Communications\nTel: 020 7016 9571\nPeter Reilly\nPatrick d'Ancona\n \n\nThis information is provided by RNSThe company news service from the London Stock Exchange END MSCEAKAXFSFDFFF\n ","length":3858,"tagName":"div"}]