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LONDON (Alliance News) - Rockhopper Exploration PLC and Falkland Oil & Gas Ltd on Thursday said they have reached an agreement on an all-share merger, creating a leading company in the Falkland Islands oil and gas sector.
The deal will comprise 0.2993 Rockhopper shares for every one Falkland Oil & Gas share. Based on Rockhopper's closing price on Monday, the deal values Falkland Oil & Gas at GBP57.1 million.
Following the implementation of the merger, Rockhopper's executive management team will remain in place, with Falkland Oil & Gas Chief Executive Tim Bushell and Chairman John Martin to join the board of the combined company as non-executive directors.
Rockhopper said the deal will create the largest Falkland Islands licence and discovered resource holder and will allow the companies to benefit from scale within the tough current oil and gas environment.
"This transaction enhances Rockhopper's position in the Falkland Islands, with the largest regional acreage position and most discovered resources, coupled with a strong balance sheet," said Pierre Jungels, Rockhopper's chairman.
Shares in Rockhopper were down 4.2% to 35.25 pence, while Falkland Oil & Gas shares were up 5.2% to 10.10p.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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