(Alliance News) - Rockhopper Exploration PLC on Thursday confirmed Harbour Energy PLC's exit from its Sea Lion project, offshore the Falkland Islands.
"Rockhopper will now work with Harbour and the Falkland Islands government to ensure an orderly exit by Harbour from the Falkland Islands," the company commented.
Rockhopper shares were trading down 35% at 5.49 pence each in London on Thursday morning. Harbour shares were down 3.9% at 368.40p.
Rockhopper is an oil & gas company with interests in the North Falkland Basin and Greater Mediterranean regions.
The company said it plans to pursue the development of Sea Lion, despite Harbour's disposal of its 60% operated interest.
"Whilst we are disappointed that Harbour has decided to not to proceed with Sea Lion, we remain committed to unlocking its development," said Rockhopper Chief Executive Sam Moody.
Rockhopper is talks with Navitas Petroleum LP to discuss its possible entry to the project.
"Navitas' recent financing on its Shenandoah project demonstrates that funding remains available to independent [exploration and production companies] in the international markets for large-scale offshore oil developments, and we very much look forward to working with them to progress Sea Lion," Moody added.
Harbour separately announced its exit from Sea Lion, saying that the development was "not deemed a strategic fit" for the company, despite its significant resource potential.
According to Rockhopper, Sea Lion has independently audited 2C resources of over 500 million barrels of oil.
Harbour also has withdrawn its stake in exploration licence interests in the Ceara Basin in Brazil and the Burgos Basin in Mexico.
London-based Harbour was recently formed from the merger of Premier Oil PLC and Chrysaor Holdings Ltd.
Unless extended, Rockhopper's head of terms agreement with Navitas and Premier Oil PLC for the Sea Lion project will expire next Thursday.
If the agreement expires, Harbour will have 90 days to arrange its exit from the project. During that period Harbour will continue to fund Rockhopper, excluding licence fees, taxes and project wind down costs.
By Scarlett Butler; scarlettbutler@alliancenews.com
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Rockhopper (RKH)
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