Mediterranean Operations Update

RNS Number : 5797Z

Rockhopper Exploration plc

12 December 2014

 



12 December 2014

Rockhopper Exploration plc

("Rockhopper" or the "Company")

Mediterranean Operations Update

Rockhopper Exploration plc (AIM: RKH), the oil and gas exploration and production company with interests in the North Falkland Basin and the Greater Mediterranean region, is pleased to provide the following operations update for the Mediterranean portfolio.

Highlights

·     Plans progressing with operator to increase production at Guendalina gas field

·     Civita onshore gas development project sanctioned - first gas expected Q4 2015

·     Participation in Croatia and Montenegro first offshore licencing rounds

·     Estimated capital investment in Mediterranean assets of $5 - 10 million in 2015

Guendalina (Rockhopper 20%)

Since Rockhopper completed the acquisition of Mediterranean Oil & Gas plc ("MOG") in August 2014, net gas production at the Guendalina offshore gas field has been maintained, following minor well interventions, at approximately 200 boe/d.

Rockhopper is actively supporting the operator's (Eni's) planned work programme to drill a side track to the well that is currently shut in following damage to the wellbore in 2012.  The sidetrack is currently scheduled for Q4 2015 / Q1 2016 and Rockhopper would anticipate investment of up to $6 million (net to its 20% interest) with expected increase in net production to over 400 boe/d.

Civita (Rockhopper 100%)

Following receipt of the last significant regulatory approval, Rockhopper is pleased to announce the sanction of the Civita gas field development.

The Rockhopper operated Civita development, located onshore Italy in the Abruzzo region is expected to produce approximately 1.0 bcf of gas over a 4 - 5 year field life. Construction of facilities and pipeline are expected to commence in early 2015 with first gas anticipated in Q4 2015. Capital expenditure on the Civita development is estimated at $3 million.

While modest in size, the economics of the Civita field are considered attractive with an IRR > 20%, payback in 18 - 24 months and an expected contribution to production of approximately 150 boe/d in 2016.

Croatia and Montenegro licence applications

Rockhopper has applied for acreage in the first offshore licencing rounds in Croatia and Montenegro. The outcome of such applications are expected later this month in the case of Croatia and early 2015 in Montenegro.

Sam Moody, CEO of Rockhopper, commented:

"Since completing the acquisition of MOG in August, we have conducted a thorough review of the portfolio with a view to focusing on those assets that provide low-cost opportunities to unlock value.

Participation in the Montenegro and Croatian licence rounds provides potential low cost, early entry to highly prospective acreage in regions with proven hydrocarbons.  We continue to evaluate both organic and inorganic options to grow our second core area in the Med & North Africa."

For further information, please contact:

Rockhopper Exploration plc

Tel: (via Vigo Communications) - 020 7016 9571

Sam Moody - Chief Executive

Fiona MacAulay - Chief Operating Officer

Stewart MacDonald - Chief Financial Officer

Canaccord Genuity Limited (NOMAD and Joint Broker)

Tel: [phone]

Henry Fitzgerald-O'Connor

Liberum Capital (Joint Broker)

Tel: [phone]

Clayton Bush

Vigo Communications

Tel: [phone]

Peter Reilly

Patrick d'Ancona

 

END

 

 

MSCEAFAFFSPLFAF