Business
Sale of non-core interests in Italy
Sale of non-core interests in Italy.
About this update from Rockhopper Exploration Plc
[{"type":"text","content":"\n \nRNS Number : 4775H Rockhopper Exploration plc 08 June 2017 \n\n8 June 2017 \nRockhopper Exploration plc\n(\"Rockhopper\" or the \"Company\")\n \nSale of non-core interests in Italy\n \nRockhopper Exploration plc (AIM: RKH), the oil and gas company with key interests in the North Falkland Basin and the Greater Mediterranean region, is pleased to announce the disposal of a portfolio of non-core interests onshore Italy to Northern Petroleum Plc (AIM: NOP) (\"Northern\"). \n \nThe transaction is structured as the sale of Rockhopper Civita Limited (\"Rockhopper Civita\"), a subsidiary company which at completion will hold all of the Petroleum Licences being disposed.\nUnder the terms of the transaction, Northern will assume all future abandonment and decommissioning liabilities associated with the Petroleum Licences. In consideration, Rockhopper will make a cash payment to Northern at completion of US$1.6 million.\nFollowing completion of the transaction, which is expected by year end 2017 and is subject to standard regulatory approvals in Italy, Rockhopper's interests in Italy will be focused on the producing Guendalina gas field and the Serra San Bernado exploration permit (which contains the Monte Grosso exploration prospect). \n \nThe previously announced international arbitration against the Republic of Italy in relation to the Ombrina Mare project is unaffected by this transaction.\n \nOperational and financial information related to the Petroleum Licences being disposed\n \nThe Petroleum Licences comprise:\n· Scanzano Concession (100% interest)\n· Monte Verdese Concession (60% interest)\n· Torrente Celone Concession (50% interest)\n· Aglavizza Concession (100% interest)\n· Civita Permit (100% interest)\n· San Basile Concession (85% interest)\n \nFor the year to 31 December 2016, the Civita gas field produced approximately 130 barrels of oil equivalent per day. \n \nRevenue and gross profit associated with the Petroleum Licences for the 12 months to 31 December 2016 was €1.1 million and €0.7 million respectively. In accounting terms, the net liabilities of the Petroleum Licences as at 31 December 2016, including the future abandonm...