By J Brock (FINN)
Rockhopper Exploration plc (AIM: RKH), an oil and gas exploration and production company with key interests in the North Falkland Basin, has announced the disposal of its entire shareholding in United Oil & Gas plc (“United”).
Involved in the transaction was the sale of 114,503,817 ordinary shares in United, at a disposal price of 2.66 pence per share, the total gross proceeds of approximately £3.0 million (approximately US$4.0 million). The disposal price represents a 6.7 per cent discount to yesterday’s closing price of United’s shares.
The sale proceeds will be used to strengthen Rockhopper’s balance sheet.
Sam Moody, Chief Executive Officer, commented:
“The monetisation of our entire shareholding in United after a short holding period of under six months strengthens our balance sheet at a particularly challenging time for the sector. It also crystallises a strong cash return of $15.5 million from an original investment of $11.9 million four years ago, which has also generated $4 million of free cash flow during our period of ownership.” Said Sam Moody, Rockhopper’s Chief Executive Officer
Source: London Stock Exchange