Falklands govt rubber stamps Rockhopper farm-out

Rockhopper's plans to farm out a majority stake in its North Falkland interests to Premier Oil have been approved by the Falkland Islands Government.

Premier is paying $231m for a 60% stake in Rockhopper's North Falkland Basin licences. An initial payment of $231m will be made in cash plus an exploration carry of up to $48m. Subject to field development plan approval it will also pay a development carry of up to $722m, bringing the total payment to $1bn.

Rockhopper's licence interests in the Falkland Islands include the Sea Lion development, pretty much the only licence area in the Falklands to show any commercial potential thus far. Premier will take over as operator of the Sea Lion development.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Premier Oil Exploration & Production will become the operator of production licences PL023, PL024, PL032, PL033 and area PL004b of production licence PL004 as a result of the farm-out deal announced in July.

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.