Rockhopper Exploration saw its bid to acquire production and exploration assets in Egypt denied after a joint venture party exercised its right of pre-emption.
Beach Energy informed the firm that one the of the Abu Sennan joint venture parties had pulled the plug on the deal.
Chief executive Sam Moody said: “We are clearly disappointed to have been pre-empted on the proposed transaction. Nonetheless, the fact that one of the JV partners has decided to pre-empt demonstrates that we have successfully identified a good quality opportunity and been able to negotiate the purchase on attractive terms.
“We will continue to adopt a highly disciplined approach to reviewing and evaluating growth opportunities in the Greater Mediterranean and North Africa region.”
The news comes as the firm, which has interests in the North Falkland Basin and the Greater Mediterranean region, confirmed its sidetrack well at the Guendalina gas filed successfully reached its target depth at 3,276m.
The well is now being completed as a producer with gas production anticipated to commence in late October.
Moody added: “This is positive news for Guendalina, and we look forward to increasing production from the field later in the year, which will enhance our already strong cash position.”