Rockhopper Exploration PLC (LON:RKH) have seen their shares spike over 30% as it updated shareholders on a new deal in the Falklands.
Rockhopper saw their shares surge 30% across Tuesday morning, and shares trade at 20p (+34.56%). 7/1/20 11:16BST.
Rockhopper have said that terms have been agreed with Navitas Petroleum (TLV:NVPT.L) who are agreeing to take a 30% stake in the project.
Rockhopper will take hold 30% after the deal, and operator Premier Oil (LON:PMO) will be the biggest holder at 40%.
Rockhopper’s initial costs will be met by a combination of cash and carry loans from the other two firms, and will get $48 million from the two partners in the future depending on development clauses.
The firm hopes for sale and purchase agreement to be signed across the first quarter of 2020.
“This is a very important milestone both for the Sea Lion project as a whole and Rockhopper itself. We will be delighted to welcome Navitas to the Sea Lion project and regard their joining as an important catalyst as well as industry endorsement of Sea Lion’s scale,” said Rockhopper Chief Executive Samuel Moody.
“Discussions are continuing to progress with senior lenders regarding project financing and should be positively supported by the transaction. We will update the market on the progress of those discussions in due course.”
Rockhopper expand following United Oil deal
At the end of December, Rockhopper announced that they will be potentially involved in a deal with United Oil (LON:UOG).
United Oil had said a week prior that they had conditionally raised $6.3 million to part fund their purchase.
United Oil and Gas undertook a conditional equity offer, raising $6.3 million gross through the issue of 159.0 million new shares at 3 pence per share.
Additionally, 150.6 million were conditionally places by brokers Optiva Securities and Cenkos Securities PLC (LON:CNKS).
United have also pledged to issue 114.5 million new shares worth $4.5 million to Rockhopper, these shares will represent 18.5% of United Oil & Gas’s enlarged share capital.
Brian Larkin, chief executive at United Oil & Gas, said: “The Rockhopper Egypt acquisition is a transformational development step for our company. Upon completion of this deal, United will have material production which will generate significant cash flow for reinvestment into the business.”
