Rockhopper Exploration (RKH) has tabled a £57m takeover bid for rival driller Falkland Oil and Gas (FOGL) in a move that would consolidate ownership in the region. The deal will increase Rockhopper's acreage in the Northern Falklands Basin, home to Premier Oil's (PMO) Sea Lion discovery, where progress has been held back by weak oil prices.
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The all-share offer was pitched at an 11 per cent premium to FOGL's share price, and has been backed by directors of both companies. Rockhopper will need to issue nearly 160m new shares, which will give FOGL shareholders around 35 per cent of the enlarged company. It is expected to complete in January 2016, around the time of the highly-anticipated Isobel-2 well result.
