19th Sep 2014 09:50
LONDON (Alliance News) - Rockhopper Exploration PLC Friday said it will not have to pay any contingent consideration to shareholders of Mediterranean Oil & Gas PLC after confirming there are no liquid hydrocarbons at the Hagar Qim prospect offshore Malta.
Rockhopper agreed to acquire Mediterranean Oil & Gas in May, in a deal that valued Mediterranean Oil & Gas at GBP294.5 million. As part of the deal, Mediterranean Oil & Gas shareholders received 6.5 pence per share in cash and Rockhopper shares, plus a contingent consideration of up to a maximum of 3.55 pence per share in cash, depending on the the success of a high-risk exploration well at the Hagar Qim prospect in Malta.
As no discovery has been made, Rockhopper will not be required to pay anything more to Mediterranean Oil & Gas shareholders, it said Friday.
ERC Equipoise Ltd produced the competent person's report that determined that the required 2C contingent resources doesn't exist from the Hagar Qim prospect.
Rockhopper's shares traded flat at 89.00 pence per share Friday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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