UK junior Rockhopper acquires Egyptian assets

UK company Rockhopper Exploration announced on Monday its acquisition of interest in non-operated assets in Egypt. The junior company bought a 22-percent share in the Abu Sennan concession and a 25-percent stake in the El Qa’a Plain concession from Australia’s Beach Energy for $22 million.

The Abu Sennan asset is located in the Abu Gharadig Basin in Egypt’s Western Desert. Rockhopper is to develop the underexplored concession with partners Kuwait Energy and the US’ Dover Investments, with working interest production set at 1,300 barrels of oil equivalent per day for the UK company.

Located on the eastern shore of the Gulf of Suez, the El Qa’a Plain will undergo 3D-seismic surveys in 2015 and will see exploration wells drilled in 2016. Rockhopper’s partners in the asset are UK firms Dana Petroleum and Petroceltic.

In a company statement, CEO Sam Moody said, “This transaction represents another significant milestone as we continue to build Rockhopper into a full cycle, exploration-led, exploration and production company […] We expect this portfolio to be net cashflow positive immediately.”

Rockhopper’s acquisition of the two Egyptian assets is expected to be completed at the end of 2015 or in early 2016.

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