Premier Oil announces farm-in to PL004a and PL004c, Falkland Islands

Thursday, October 3, 2013      
 
  • Under the agreement with FOGL, its share of costs for an exploration well on the Isobel/Elaine prospect (PL004a) and an exploration well on the Jayne East prospect (PL004c) will be carried by Premier and Rockhopper.

Premier and Rockhopper Exploration plc have signed a Heads of Agreement with Falkland Oil and Gas Limited ("FOGL") to farm-in to licences PL004a and PL004c, conditional on the completion of this morning's announced combination of FOGL and Desire Petroleum plc ("Desire"). Licences PL004a and PL004c, which include the Isobel/Elaine and Jayne East prospects, are situated in the North Falkland Basin, adjacent to the Sea Lion development.

Under the agreement with FOGL, its share of costs for an exploration well on the Isobel/Elaine prospect (PL004a) and an exploration well on the Jayne East prospect (PL004c) will be carried by Premier and Rockhopper. Under a prior agreement with Rockhopper, Premier and Rockhopper will split the revised equity interests in the ratio 60/40. Under the same prior agreement with Rockhopper, Premier have agreed to fund up to US$48 million of Rockhopper's share of three exploration wells in the basin.

The revised ownership in the two licences on completion of the transaction will be as follows:


PL004a
PL004c

Old
New
Old
New
FOGL/Desire
92.5%
40%
75%
40%
Premier
4.5%
36%
15%
36%
Rockhopper
3%
24%
10%
24%


The farm-in is subject to completion of the combination of FOGL and Desire and customary Falkland Islands Government approvals. Exploration drilling is targeted for 2014 and 2015, subject to finalisation of a rig contract.

Simon Lockett, Chief Executive, commented:

"We are delighted to increase our equity interests within these two licences which we believe have the potential to add significant value to our existing interests in the Falkland Islands. The revised equity interests and cost sharing agreements will ensure that these licences can be included in the next phase of the planned Falkland Islands exploration programme."


 

Join 80,000 oil and gas professionals who receive our weekly newsletter.

You may unsubscribe at any time with one click.

Article Tags

Premier Oil Falkland Oil and Gas Rockhopper Exploration Falkland Islands South America AIM Operations Update Farm In


This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser. More


Related News


Upcoming OilVoice Training Course

Mastering 4D Seismic - 2 Day Course
This is an intensive course covering all aspects of time-lapse seismic (4D) methodology so that attendees can participate in any aspect of 4D technology. The course gives a perspective on the development of 4D seismic from the 1980’s to its present use in mature areas. Linkages with Reservoir Engine...
London - 14 Sep


Trainer
Ian Jack

Cost
£1000

Discount Code
OilVoice-10 for 10% off any course.View Course

All OilVoice Training Courses
Popular Headlines View all


Latest Opinion View all

Join 90,000 other oil and gas professionals

Network with others, build your profile, and receive the latest oil and gas news in your inbox. It's free!

Create profile

Time for a change? All jobs Jobs near you

OilVoice Training All upcoming

Mastering 4D Seismic - 2 Day Course
London 14 Sep   Registrations Closing Soon

Introduction to Oil and Gas Exploration and Production
London 18 Nov



About

OilVoice, established in 2002, is your leading source of upstream news, jobs and industry information.


Newsletter

Each week we send our weekly industry round-up. Why not try it? You may unsubscribe at any time.

Contact OilVoice

Milton Keynes
United Kingdom
Phone: +44 207 993 5991
Contact Us


Stay Connected


2015 © OilVoice  .  Privacy Policy  .  Terms of Service  .  Oil Careers  .  Advertise with us