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Rockhopper signs letter of intent with Diamond Drilling at Sea Lion
Oil and gas company Rockhopper Exploration updated the market on Sea Lion Phase 1 in the North Falkland Basin, where it holds a 40% working interest, on Monday.
The AIM-traded firm said a letter of intent has been entered into with Diamond Offshore Drilling, for the provision of a suitable drilling unit for the development.
It said the letter granted a period of exclusivity until 31 December, during which time the joint venture would negotiate binding documentation based on agreed principles for the provision of the drilling unit and vendor financing.
"2018 has already seen material progress made on our work in moving Sea Lion closer to sanction," said Rockhopper chief executive Samuel Moody.
"We are delighted to have been able to enter into this letter of intent with Diamond, with whom we enjoyed a fantastically successful, safe and cost-effective drilling campaign in the Falklands during 2010 and 2011."
Moody said the Rockhopper board believed that teaming up with Diamond was a "significant" step in the company's continued progress towards sanction with its partner, Premier Oil.
"Having already signed letters of intent for the provision of well services and logistical support, focus now moves to the subsea equipment suppliers where we hope to make progress during the remainder of the first quarter as we continue discussions on the senior debt element of the financing plan."