Rockhopper Exploration has struck a deal to sell off its interest in the Abu Sennan concession in Egypt to fellow London-listed company Untied Oil & Gas.

Rockhopper has agreed to sell its Egyptian subsidiary, which holds a 22% interest in Abu Sennan, to United for $16 million.

Under the terms of the proposed deal, United will pay a cash consideration of at least $11 million, with any shortfall of the $16 million headline consideration be satisfied in new shares in United.