Rig Contract Signed

RNS Number : 7727I

Rockhopper Exploration plc

04 June 2014

 



Embargoed for release 7.00 am: 4 June 2014

Rockhopper Exploration plc ("Rockhopper", "RKH" or the "Company")

Rig Contract

Rockhopper Exploration plc is pleased to announce that a drilling unit has been contracted by Premier Oil plc ("Premier") to drill a minimum of four firm wells in the North Falkland Basin.

The rig has been contracted by Premier as Operator and will also be used by Noble Energy under a rig sharing agreement to drill a further two firm wells elsewhere in the Falklands. Additionally, eight options have been secured which can be exercised prior to mobilisation and a further eight, which can be elected at key points during the campaign.

While the drilling order has yet to be finalised, Rockhopper and its partners anticipate using the first two firm slots on the rig to drill the Zebedee and Isobel/Elaine prospects, with Noble taking the third and fourth, before the rig returns to the North Falkland Basin for the final two firm wells which are likely to be the Jayne East and Chatham / Sea Lion West Flank locations.

Rockhopper's sub-surface team has been continuing to fine-tune the exploration locations to ensure that reservoirs are penetrated in the most optimal position. In the case of the Isobel / Elaine fan complex this means the well has been relocated to target the Isobel Deep Fan only as the first well in that area and that the prospective STOIIP for the well reflects that change:

	Gross STOIIP (mmbbls) - Rockhopper management estimate
	Zebedee	Isobel / Elaine	Jayne East	Chatham / Sea Lion West Flank	TOTAL
F1 & F2 (exploration targets)	315	-	194	-	509
F3 (exploration targets)	626	241	95	225	1,187
Exploration total	941	241	289	225	1,696
GCoS	9 - 52%	20%	13 - 36 %	17%
Appraisal	-	-	-	200	200
Total Gross	941	241	289	425	1,896
RKH Working Interest	24%	24%	24%	40%
RKH Net STOIIP	226	58	69	170	523

It is anticipated that the rig will arrive in the North Falklands Basin between February and May next year.

Sam Moody, CEO, commented:

"We are very pleased that the contract for this rig has been signed and that we can now get planning in earnest for the next exploration drilling campaign.  The four firm wells in the North Falklands Basin will target a total of over 520 mmbbls of STOIIP net to Rockhopper (management estimate) and will bring the total number of wells Rockhopper has drilled in the Falklands as both Operator and non-Operator to 19.  Given our track record in the basin we are confident that the targets of our new drilling campaign are highly prospective.  We continue to work closely with Premier as we jointly move the Sea Lion project towards Final Investment Decision."

Ends.

For further information, please contact:

Rockhopper Exploration plc

Tel: (via Vigo Communications) - 020 7016 9571

Sam Moody - Chief Executive

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

This announcement has been approved by Rockhopper's geological staff who include Fiona MacAulay (Chief Operating Officer), who is a Fellow of the Geological Society of London and a Member of the Petroleum Exploration Society of Great Britain and American Association of Petroleum Geologists with over 25 years of experience in petroleum exploration and management, and who is the qualified person as defined in the Guidance Note for Mining, Oil and Gas Companies issued by the London Stock Exchange in respect of AIM companies. In compiling its resource estimates, Rockhopper has used the definitions and guidelines as set forth in the 2007 Petroleum Resources Management System approved by the Society of Petroleum Engineers.

Glossary of Technical Terms

GCoS	Geological chance of success
mmbbls	Million barrels
STOIIP	Stock-tank oil initially in place, being the volume of oil in a reservoir prior to production

Notes to Editors:

Rockhopper was established in February 2004 with a strategy to invest in and carry out offshore oil exploration to the north of the Falkland Islands. The Company floated on AIM in August 2005.

An extensive work programme was 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. 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 Sea Lion during April and May 2010, the result of which was the first oil discovery and Contingent 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's drilling campaign lasted from 16 April 2010 to 8 January 2012 and resulted in seven successful wells of the ten drilled, with three oil discoveries, three gas discoveries, multiple successful Sea Lion appraisal wells and a successful appraisal well on Casper.

In October 2012 Rockhopper completed a farm-out agreement with Premier Oil plc, whereby Premier Oil acquired 60% of Rockhopper's interests in its North Falkland Basin licences.

In October 2013 Rockhopper agreed with Falkland Oil and Gas to farm-in to licences PL004a and PL004c increasing the Company's interest in those licences to 24%.

Rockhopper currently has a 40% interest in licences PL032 and PL033 operated by Premier Oil plc, and a 24% interest in licences PL004a, PL004b and PL004c, which are operated by Falkland Oil & Gas Limited. PL004b contains the extension to the Sea Lion Field as well as the Beverley, Casper and Casper South discoveries. Rockhopper also has a 3% interest in PL003, operated by Premier Oil plc.

Rockhopper Exploration plc www.rockhopperexploration.co.uk

 

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