Oil & Gas Corporate News
Rockhopper (LON:RKH) Exploration plc (BUY, 600p) (RKH, 191.25p, ? 12.67%)announced a farm-in agreement with Desire Petroleum and a share placing. Rockhopper has agreed the terms of a farm-in agreement with Desire Petroleum to farm-in to that part of the north-western acreage of licence PL004 known as Area 1, which the Company believes contains the extension to the Sea Lion field and the western part of the "Beverley" prospect, and into the north-eastern part of licence PL004 known as Area 2 which the Company believes contains the "Jayne" prospect and the eastern part of the "Beverley" prospect. In consideration for paying the full cost of the drilling of one well in Area 1 within the current campaign, the agreement will give Rockhopper operatorship of Area 1 and an earned interest of 52.5% and, in aggregate, 60% (when taken together with its existing 7.5% earned interest under license PL004), in that area. The drilling of the well in Area 1 will also give the Group a 17.5% working interest and, in aggregate, 25% in Area 2. Operatorship of Area 2 will remain with Desire. By the time that well 14/10-9 is spudded, the Company expects to have exercised its right to take up one additional option on the Ocean Guardian drilling rig. The well in Area 1 is expected to be drilled immediately after well 14/10-9. Rockhopper has agreed to drill the well within 65 days of the Ocean Guardian drilling rig being available to it following the drilling of well 14/10-9. In the event that it fails to do so, Rockhopper Oil will give up its interest in both Area 1 and Area 2 pursuant to the Farm-In Agreement. Rockhopper also announced its intention to place up to 25,814,000 new Ordinary Shares representing up to approximately 10% of the existing share capital. Given the opportunity to extend control of Sea Lion through the farm-in agreement, the Company has concluded that it is in the Company's and Shareholders' best interests to raise funds through the Placing. Rockhopper's short and medium term aims are to: complete the appraisal of its 100% acreage on Sea Lion by completing the drilling of 14/10-8 and 14/10-9; pay 100% of the cost of one well, as operator, on Area 1; contribute 25% towards of the cost of Desire drilling one well on Area 2; conduct front end…
