Premier has agreed to farm-in for 60 per cent. of Rockhopper’s licence interests in the Falkland Islands, which includes the Sea Lion development (the “Acquisition”).
The initial payment will be $231 million in cash plus an exploration carry of up to $48 million and, subject to field development plan approval, a development carry of up to $722 million. These will be funded from a combination of Premier’s existing cash resources, facilities and cash flow from operations.
Premier and Rockhopper have also agreed to pursue jointly exploration opportunities in the Falkland Islands and analogous plays in selected areas offshore Southern Africa.