9th Jul 2014 10:26
LONDON (Alliance News) - Rockhopper Exploration PLC and Mediterranean Oil & Gas PLC Wednesday said the rig used to drill the exploration well targeting the Hagar Qim prospect in offshore Malta has now moved off site, after the Hagar Qim-1 well was plugged and abandoned upon finding no hydrocarbons.
Rockhopper Exploration agreed to acquire fellow AIM firm Mediterranean Oil & Gas back in May, in a deal valuing Mediterranean Oil & Gas at around GBP29.3 million that will create an oil and gas company with a market value of GBP294.5 million.
Mediterranean Oil & Gas had said that after a series of setbacks over the past year at its principal producing asset, the Guendalina Field, as well as continuing regulatory delays to its key development project Ombrina Mare, its growth strategy had been held back.
Under the terms of the deal, Mediterranean Oil & Gas shareholders receive 6.5 pence per share in cash and Rockhopper shares for each Mediterranean Oil & Gas share held.
Mediterranean Oil & Gas shareholders are also to receive a contingent consideration of up to a maximum amount of 3.55 pence in cash for each share held in the company, with the amount of cash payable to be determined by the success of a high-risk exploration well at the Hagar Qim prospect offshore Malta, and at least 80 million barrels in total in the 2C Contingent Resources of liquid hydrocarbons, estimated to be potentially recoverable from the Hagar Qim prospect.
In statements Wednesday, the two companies said the rig used to drill the exploration well targeting the Hagar Qim prospect in offshore Malta Area 4, Block 7 has now moved off location.
Last week, Mediterranean Oil & Gas said it received notification from Phoenicia Energy Company Ltd - a subsidiary of Genel Energy PLC and the operator of offshore Malta Area 4, Block 7 - that the Hagar Qim-1 well had been drilled to the Eocene and plugged and abandoned with no indications of hydrocarbons.
Mediterranean Oil & Gas holds a 25% working interest in the prospect.
Rockhopper Exploration shares were down 0.5% at 93.25 pence Wednesday morning, while Mediterranean Oil & Gas shares trading 0.5% higher at 6.16 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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