Rockhopper Exploration plc (AIM: RKH) has disposed of a portfolio of non-core interests onshore Italy to Northern Petroleum Plc (AIM: NOP).
Instead the oil and gas company will focus on key interests in the North Falkland Basin and the Greater Mediterranean region.
The transaction is structured as the sale of Rockhopper Civita Limited (“Rockhopper Civita”), a subsidiary company which at completion will hold all of the petroleum licences being disposed.
Under the terms of the transaction, Northern will assume all future associated abandonment and decommissioning liabilities.
In consideration, Rockhopper will make a cash payment to Northern at completion of $1.6 million.
Following completion of the transaction, which is expected by year end 2017 and is subject to standard regulatory approvals in Italy, Rockhopper’s interests in Italy will be focused on the producing Guendalina gas field and the Serra San Bernado exploration permit.
Sam Moody, chief executive officer of Rockhopper, said: “Our entry to the Mediterranean has created a strong platform for the growth of the business, bringing cashflow and exploration opportunities such as Monto Grosso. This transaction represents the conclusion of our initiative to streamline our Italian interests, focus on material assets and right-size our cost base.
“Through the Civita gas field, which Rockhopper developed as operator and brought on stream in 2015, we have added material value which allows us to off-set our exposure to future decommissioning liabilities.
“We remain focused on growing our Greater Mediterranean business in 2017 and beyond.”
The petroleum licences being disposed of are:
• Scanzano Concession (100% interest)
• Monte Verdese Concession (60% interest)
• Torrente Celone Concession (50% interest)
• Aglavizza Concession (100% interest)
• Civita Permit (100% interest)
• San Basile Concession (85% interest)
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