Rockhopper Exploration Plc (RKH.L), an oil and gas exploration company, Monday responded to Falkland Oil & Gas Limited's (FKL.L) announcement, confirming that the farm-out negotiations in connection with the Falkland Islands licences PL004a and PL004c have been completed.
Rockhopper stated that, as announced on October 3, the company and Premier Oil Exploration and Production Limited signed heads of agreement with Falkland with respect to a farm-out by Falkland of licences PL004a and PL004c.
The Farm-out is with respect to licences in which Desire held working interests of 92.5 percent. and 75 percent, respectively. The company noted that following the scheme of arrangement between Falkland and Desire becoming effective, the binding Farm-out Agreement has now been signed by all parties.
Subject to certain standard conditions in the Farm-out Agreement, Rockhopper and Premier have now farmed in to the Licences. Following this, Rockhopper's interest in the Licences has risen to 24 percent. Both Premier and Rockhopper will fund Falkland's share of the cost of two exploration wells, one on each of the Licences.
Rockhopper said it is anticipated that these two wells will be included in the next drilling campaign, which is expected to commence in late 2014 or early 2015, and will target the Isobel/Elaine and Jayne prospects.
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by RTT Staff Writer
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