Capital Markets Presentation

RNS Number : 1841O

Rockhopper Exploration plc

14 September 2011

 

Embargoed: 0700hrs 14 September 2011

Rockhopper Exploration plc

("Rockhopper" or the "Company")

Capital Markets Presentation

Rockhopper Exploration plc (AIM: RKH), the North Falkland Basin oil and gas exploration company, is holding a Capital Markets Presentation this morning. The presentation provides a summary of the Company's recent drilling operations in the North Falkland Basin and also outlines a development plan for its Sea Lion Discovery.

The Company has worked up a development plan on the basis of a recoverable resource of 350 mmbbls using a leased FPSO. The other principal assumptions set out in the plan include an estimation of first oil being achieved in early 2016, with maximum production of 120,000 bpd by 2018, and development costs to first oil expected to be in the region of $2 billion.

The Company expects to complete its concept engineering studies in the first quarter of 2012 and shortly thereafter to commence its Front-End Engineering Design ("FEED").  The FEED is expected to be completed and submitted to the Falkland Islands Government in the first quarter of 2013, by which time the Company would expect to have awarded the contracts to the FPSO provider and subsea contractor.

Accounting for all outstanding payments for well 14/10-6, the previous well drilled, the Company estimates that it will have cash resources of $170 million. The Company is therefore fully funded to complete 14/10-7, the current well, and the remaining two committed drilling slots that it has with the Ocean Guardian. The Company is considering its position as to whether it will take up any additional options on the Ocean Guardian.

The full presentation to be given will be available for viewing on the Company's website:

 www.rockhopperexploration.co.uk

Enquiries:

Rockhopper Exploration plc

Sam Moody - Chief Executive

Tel. [phone] (via M: Communications)

M: Communications

Patrick d'Ancona or Ben Simons

Tel. [phone]

Canaccord Genuity Limited

Charles Berkeley / Henry Fitzgerald-O'Connor

Tel. [phone]

Notes to Editors

Rockhopper was established in February 2004 with a strategy to invest in and carry out an offshore oil exploration programme to the north of the Falkland Islands. The Company floated on AIM in August 2005 and holds a 100 per cent. interest in four offshore production licences: PL023, PL024, PL032 and PL033 which cover approximately 3,800 sq. km. Rockhopper has also farmed in (7.5% working interest) to licences PL003 and PL004, which are operated by Desire Petroleum. These licences have been granted by the Falkland Islands government.

An extensive work programme has been carried out over a number of years on the licences operated by Rockhopper. This has included 2D and 3D Seismic and Controlled Source Electromagnetic Mapping (CSEM). In February 2010, the Ocean Guardian drilling rig arrived in Falkland waters to carry out a multi-well drilling campaign. Rockhopper drilled an exploration well on its Sea Lion prospect during April and May 2010, the result of which was the first oil discovery and Contingent Oil Resource in the North Falkland Basin. The Sea Lion discovery was successfully tested during September 2010 and June 2011 and was the first oil to flow to surface in Falkland Islands waters. Rockhopper contracted seismic vessels MV Polarcus Asima and Nadia to carry out a 3D seismic survey over areas of licences PL024, PL032 and PL033 which were not previously defined by 3D, as well as adjacent areas. Data over the southern portion of licences PL032 and PL033 has been fast track processed and an initial interpretation has now been completed. The balance of the newly acquired 3D seismic data is still being processed and the Company expects it will be available for interpretation before the end of 2011.

Rockhopper Exploration plc www.rockhopperexploration.co.uk

Forward looking statements

Certain statements in this announcement are forward-looking statements which are based on the Company's expectations, intentions and projections regarding its future performance, anticipated events or trends and other matters that are not historical facts.  These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that would cause actual results or events to differ from current expectations, intentions or projections might include, amongst other things, changes in oil prices, changes in equity markets, failure to establish estimated petroleum reserves, political risks, changes to regulations affecting the Company's activities, delays in obtaining or failure to obtain any required regulatory approval, failure of equipment, uncertainties relating to the availability and costs of financing needed in the future, the uncertainties involved in interpreting drilling results and other geological, geophysical and engineering data delays in obtaining geological results and other risks associated with offshore exploration, development and production. Given these risks and uncertainties, readers should not place undue reliance on forward-looking statements. Forward-looking statements speak only as at the date on which they are made and, except as required by applicable law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

 

END

 

 

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