Rockhopper Exploration and Falkland Oil and Gas have agreed merger deal – a move which will create the largest North Falkland Islands licence.
Under the deal Falkland shareholders will receive 0.2993 Rockhopper in consideration shares.
Pierre Jungels, chairman of Rockhopper, said: “This transaction enhances Rockhopper’s position in the Falkland Islands, with the largest regional acreage position and most discovered resources, coupled with a strong balance sheet.
“By combining Rockhopper and FOGL, we shall create a more coherent licence ownership structure in the North Falkland Basin, driven by a technically accomplished organisation with a strong exploration and appraisal track record, well positioned to access the opportunities in this emerging hydrocarbon province.
“The Rockhopper board believes this merger will also add further momentum to the on-going work to progress the development of discovered resources in the area towards commerciality.”
The pair will now push ahead with the Sea Lion project.
John Martin, chairman of FOGL added: “FOGL has built a significant portfolio of discovered resources in the Falkland Islands region despite the challenging market conditions.
“The enhanced scale, capabilities and financial position of the merged FOGL and Rockhopper entity will provide FOGL Shareholders with a platform from which to bring these quality resources into development. As a result, the FOGL Board intends unanimously to recommend that FOGL Shareholders accept the proposed transaction.”
