18th Apr 2016 07:29
LONDON (Alliance News) - Rockhopper Exploration PLC on Monday said it has acquired a portfolio of non-operated production and exploration interests in Egypt under an amended agreement.
Rockhopper, which already owns assets in the North Falkland Basin and in the Mediterranean region, said it will acquire the assets from Beach Energy Ltd for USD11.9 million in cash, payable on completion.
The company originally agreed terms for the acquisition from Beach in August 2015, but due to the exercise of pre-emption rights on one of the concessions, the agreement had to be amended.
Upon completion, the deal will give Rockhopper a 22% interest in the Abu Sennan concession and a 25% interest in the El Qa'a Plain concession.
In addition, Rockhopper has struck a further deal with Dover Petroleum Corp to sell a 5.0% stake in the Abu Sennan concession, which will cut Rockhopper's interest back to 17%.
Rockhopper expects the deal to complete in mid-2016 and said the expected working interest production from the two licences will be around 1,000 barrels of oil equivalent per day, based on average production levels in the second half of 2015.
"A patient approach to this transaction has paid dividends for Rockhopper, and we are delighted to have reached agreement with Beach on the amended terms of the acquisition of Beach Egypt. We believe this deal is a strategically important step, perfectly suited to the current economic environment for the industry, where low cost, cash generative assets are increasingly important," said Sam Moody, Rockhopper's chief executive.
By Sam Unsted; [email protected]; @SamUAtAlliance
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