FOGL, the oil and gas exploration company with its extensive licence areas offshore the Falkland Islands is pleased to announce that the farm-out with Premier and Rockhopper in connection with the Falkland Islands licences PL004a and PL004c has been completed.
As announced on 3 October 2013, FOGL signed heads of agreement ("Heads of Agreement") with Premier and Rockhopper on 3 October 2013 with respect to a farm-out of licences PL004a and PL004c (the "Licences") (the "Farm-out"). The Farm-out is with respect to licences in which Desire held working interests of 92.5 per cent. and 75 per cent. respectively. Following the Scheme of Arrangement becoming effective on 5 December 2013, the Farm-out Agreement has now been signed by all parties.
Premier and Rockhopper have now farmed in to the Licences and as a result, the enlarged FOGL group's new operated working interests in the Licences have both been reduced to 40 per cent. Premier and Rockhopper will fund FOGL's share of the cost of two exploration wells, one on each of the Licences.
It is anticipated that these two wells will be included in the next drilling campaign, which is expected to commence in late 2014/ early 2015, and will be targeting the Isobel and Jayne prospect stacks.
Terms and expressions used in this announcement shall, unless the context otherwise requires, have the same meanings as given to them in the circular sent to shareholders of FOGL on 23 October 2013.
Tim Bushell, Chief Executive of FOGL said:
"The signing of this agreement with Premier and Rockhopper is an important first milestone for the new enlarged Company. The farm-out allows us to participate in a more extensive exploration drilling programme, whilst retaining meaningful equity stakes in high potential assets and signifies the launch of a very exciting period ahead for FOGL."
