Sea Lion Update

RNS Number : 4164Z

Rockhopper Exploration plc

06 February 2014

 



6 February 2014

Rockhopper Exploration plc

("Rockhopper" or the "Company")

Sea Lion Update

Rockhopper Exploration plc (AIM: RKH), the North Falkland Basin oil and gas exploration company, advises shareholders that Premier Oil will today provide an update on the Sea Lion Development at a Capital Markets Day.

The following details of the Sea Lion Development using a Tension Leg Platform ("TLP") concept will be disclosed:

Costs (unescalated in 2013 money):

It is estimated capital costs (gross) for Phase 1 of the Sea Lion development will total $5.2 billion comprising $3.5bn for surface facilities and $1.7bn for drilling.  Capital expenditure to first oil is expected to be $3.8bn. Annual operating expenditure (gross) is expected to average $260 million including Floating Storage Unit rental and well interventions.

Schedule:

Premier Oil expects to award the Front End Engineering and Design contracts in 2Q 2014 and to submit the draft Field Development Plan at the end of this year. Also at the end of this year, Engineering Procurement and Construction contracts will be awarded. Field sanction is anticipated in 2Q 2015. Rockhopper continues to anticipate first oil 3½ to 4 years after project sanction.

Resources

Phase 1 of the Sea Lion Development is expected to recover 293 mmbbl over 25 years.

Ends.

Contacts:

Rockhopper Exploration plc

Tel: [phone]

Sam Moody - Chief Executive (via Vigo Communications)

Canaccord Genuity Limited (NOMAD and Joint Broker)

Tel: [phone]

Henry Fitzgerald-O'Connor

Vigo Communications

Tel: [phone]

Peter Reilly

Patrick d'Ancona

This statement has been approved by the Company'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, for the purpose of the Guidance Note for Mining, Oil and Gas Companies issued by the London Stock Exchange in respect of AIM companies, which outline standards of disclosure for mineral projects.

Glossary of technical terms

Mmbbl - Million Barrels

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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