Rockhopper rises 9% even after Mediterranean Oil and Gas duster

Falklands driller announced a deal to acquire Mediterranean Oil and Gas (MOG) back in late April. MOG today announced news from a wildcat well offshore Malta and as expected it proved to be a duster given its low chance of success.

The RNS read, “MOG has received formal notification from Phoenicia Energy Company Ltd (a wholly owned subsidiary of Genel Energy plc), the operator of the Area 4 licence offshore Malta (MOG 25% working interest), that the Hagar Qim-1 well has been drilled to the Eocene and plugged and abandoned with no indications of hydrocarbon.”

Rockhopper’s deal to acquire MOG had a provision for an additional payment contingent on success at the Hagar Qim-1 Well, so it was not to be for MOG shareholders with the shares dropping 6% on the news.

Tony Durrant Premier Oil’s new CEO

What was more interesting was the 9% rise in Rockhopper shares. Many were speculating that its shares would drop on this result but instead they rose. With Rockhopper’s Falkland partner Premier Oil, appointing Tony Durrant as Chief Executive from the FD position, it may be that some positive news is soon due in regard to the Sea Lion development in the North Falklands basin. It was expected that Premier would appoint an external candidate for the head role but instead went for the seasoned internal candidate and given some recent asset disposals it seems that the tide may be turning in the Falkland projects favour.

For MOG’s Maltese campaign, it was not to be. A high risk, high reward play which was certainly against the odds.

Contrarian Investor UK

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