Press Release
05 October 2007
McGrigors advises Falkland Oil and Gas Limited on Farm-out agreement with BHP Billiton
Leading UK law firm McGrigors LLP, which has offices across the UK and the Falkland Islands, has advised the AIM-listed exploration company, Falkland Oil and Gas Limited (“FOGL”) on a farm-out agreement with BHP Billiton, the world’s largest diversified resources group.
The agreement will see FOGL sell 40 percent of its stake in its 2002 and 2004 licences to the South and East of the Falkland Islands to BHP Billiton. In return BHP Billiton will pay FOGL US$10 million relating to past costs and 53.33% of the drilling costs going forward.
Under the agreement a minimum of two exploration wells will be drilled in the next three years. BHP Billiton will take over operation of the licenses, effective 1 January 2008.
The McGrigors team was led by Brian Cassidy, a Partner in the firm’s Oil and Gas team. Brian has over 11 years experience in the upstream oil and gas sector advising on projects, joint ventures and corporate/asset acquisitions and disposals predominantly overseas but also within the United Kingdom.
Brian Cassidy, commented: “This was a highly interesting assignment for the team utilising both our specialist sector knowledge as well as our regional experience in completing the transaction in a relatively short timescale."
For further information please contact:
Louisa Hollins
Financial Dynamics
Telephone - +44 (0) 20 7269 7108
Email - Louisa.hollins@fd.com
Andy Peat
Financial Dynamics
Telephone - +44 (0) 20 7269 7185
Email - andy.peat@fd.com