Rockhopper Exploration: Proposed Merger With FOGL
Edison | Nov 24, 2015 11:40PM ET
Proposed merger with FOGL
Rockhopper Exploration (L:RKH) has announced a proposed merger with FOGL, consolidating ownership of assets in the North Falkland basin, in which the Sea Lion development and Isobel/Elaine Deep discovery lie. As a result, the new entity will have large interests in both major discoveries in the Falkland Islands, making any future deals to develop/farm-down the assets much easier. The deal could complete in January 2016 (after shareholder and government approvals), around the time of the Isobel-2 well result, which is aiming to further de-risk >500mmboe resources.
Under the all-share deal, RKH is paying 0.2993 new shares for each FOGL share, effectively valuing FOGL at an 11% premium to last night’s closing price, which will result in current Rockhopper shareholders owning 65% and FOGL 35% of the enlarged entity. Attention is focused on the North Falklands basin; the merger adds 110mmbbls of 2C resources to the group, with the key asset of working interests in PL004.
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