Rockhopper Exploration (LON:RKH) today revealed that it has signed up the Ocean Guardian drill rig for another well, this time on the PL004 licence.
The exploration well will test whether or not the Sea Lion oil discovery extends into the licence.
This is the commitment well for the farm-in deal that Rockhopper struck with Desire Petroleum (LON:DES) last week. By carrying all the costs of the well, Rockhopper will complete its acquisition of an additional stake in the joint venture licence.
The well will be drilled on Area 1 of the PL004 licence, and with its completion Rockhopper will increase its stake in this area to 60 per cent.
Drilling will begin once the Ocean Guardian has completed it next scheduled well which will be Rockhopper’s 14/10-9 well, the eighth to test the Sea Lion oil discovery.
Through last week’s farm-in deal Rockhopper has cherry-picked part of the PL004 licence, covering around 23 per cent of the acreage. Desire keeps a 92.5 per cent stake in the rest of the licence.
In Area 1 Rockhopper will increase its stake in this area to 60 per cent by paying for the upcoming well. It is also agreed that Rockhopper will also become the operator of this part of the licence.
Meanwhile Rockhopper will earn an additional 17.5 per cent stake in Area 2 – taking its total interest in this area to 25 per cent – by contributing 25 per cent of the costs for a future well in this area, should Desire decide to drill one. Read More
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