Amidst a bloodbath in yesterday’s stock market, Rockhopper, the only successful exploration company to date, saw its shares drop 6.75p to 202.25p despite looking set to attract bid interest from one of the major oil companies.
With share prices looking cheap, some voices in the City expressed the view that the AIM-listed company was ripe for a takeover bid as the big players would be looking to extend their options in these troubled times. Analysts picked out Rockhopper as one of the most attractive, thanks in part to the absence of a blocking shareholder and its large assets.
Falklands Oil and Gas (FOGL), which has failed to find any black gold in its previous attempt last year, announced a delay to the next drilling round due to the contracted rig, the Leiv Eiriksson, being tied up for a further month by Cairn Energy in Greenland. The rig is not now expected to arrive off the Falklands until January with Borders and Southern, another exploration company, having the first option.
FOGL now expect drilling to commence early April.