Rockhopper picks up key finance deal
Plans to produce oil off the Falkland Islands are a step closer after Rockhopper Exploration and Premier Oil hired Standard Chartered to work on financing the $1.5 billion project. Rockhopper said that Standard had been “appointed as pathfinder bank in relation to the proposed senior debt project financing” for the first phase of development.
Rockhopper discovered oil off the Falklands in 2010 and secured Premier Oil’s investment in 2012. Development hit the rocks after oil prices slid but the companies are now optimistic after higher oil prices revived investor interest in the sector.
Analysts at Peel Hunt said that it was “an important step in the process to secure funding for the project”.
They raised the odds of the project going ahead to 40 per cent from 30 per cent and upped their target price for Rockhopper shares to 70p from 60p. Rockhopper shares closed up ¼p at 40¾p.