Rockhopper Exploration has outlined the details of its fresh bid for Beach Energy’s Egyptian assets.
The exploration firm, which focusses on the North Falkland basin and the Greater Mediterranean region, will pay $11.9million for Beach’s Abu Sennan and El Qa’a Plain concessions.
The amended version follows its original bid in August last year. However, it fell down after the exercise by one of the partners of pre-emption rights on the Abu Sennan concession.
Chief executive Sam Moody, CEO, said: “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.
“With the upfront cash consideration payable broadly flat and reducing in the event of the Proposed Dover Transaction, the implied transaction multiple falls to US$2.7 per barrel of oil equivalent.
“With low unit cash operating costs at approximately US$8 per barrel in 2015, we expect this portfolio to be net cash flow positive, even in the current oil price environment, and upon completion of the transaction expect operating cash flows from Egypt and our existing Italian assets to broadly cover Group overheads going forward.
“The Acquisition also represents the continuation of Rockhopper’s strategy to build a full cycle E&P company focused on its two core areas and represents the Company’s entry into Egypt, a prolific hydrocarbon province.”