Rockhopper Exploration Plc said on Nov. 24 it had made a takeover offer for rival Falkland Oil and Gas Ltd. (FOGL) which values the latter at 57.1 million pounds (US$86.5 million).

The takeover, which will involve FOGL's chief executive and chairman joining the Rockhopper board as non-executive directors, will merge the companies' exploration campaigns in the Falkland Islands, they said in a joint statement.

As part of the deal, Rockhopper will seek approval from shareholders to issue nearly 160 million new Rockhopper shares at a general meeting on or around Dec. 14, the companies said.

Headquartered in London, FOGL is focused on exploration for offshore oil reserves offshore the Falklands. Rockhopper, based in Salisbury, Wiltshire, in the U.K., owns offshore licenses in the North Falkland Basin.