Rockhopper has announced a recommended offer for MOG valuing it at £29.3m or 6.5p a share in cash and RKH stock. There is also a contingent element to ensure MOG shareholders don’t lose out if the Malta well comes in. Deal is 4.875p in cash plus 0.0172 RKH shares and up to 3.55p in cash subject to well result.
I intend to write this up in full in the blog a little later and after I have spoken to all the protagonists, I am up to speed on MOG as I had a detailed interview with Dr Higgs only a week ago and was due to write it up this morning.
First glance it looks like a very smart deal for RKH, this is not just Italy, more of a foray into North Africa and the Mediterranean and answers a number of questions about where they go post the Falklands. The price at $1 a barrel of oil equivalent seems on the face of it cheap, Sea Lion costs are about $1.1o pb.
Lots more after I have spoken to the parties involved.