Year End Update

RNS Number : 0326E

Rockhopper Exploration plc

04 April 2014

 



4^th April 2014

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

Year End Update

Rockhopper Exploration plc (AIM: RKH), the North Falkland Basin oil and gas exploration company, provides the following financial year-end update.

Highlights

·      Tension Leg Platform ("TLP") concept selected following rigorous project evaluation process. Phase 1 of the Sea Lion Development expected to recover 293 million barrels of oil. Anticipated gross peak production rate increased to over 100,000 barrels per day

·      Pre-development activities on Sea Lion continuing as scheduled with award of FEED contracts expected during May

·      Plans for a four well exploration drilling campaign in 2015 proceeding - negotiations with rig providers at an advanced stage

·      Board strengthened with the appointment of a new CFO who brings an established track-record of oil & gas financings and the appointment of two highly experienced industry non-executive directors

·      Year end cash balance US$247 million (as at 31 March 2014)

Dr. Pierre Jungels, Chairman of Rockhopper, commented:

"Our balance sheet remains strong and our core Sea Lion project continues to move forward with a number of key development milestones anticipated through the remainder of 2014. We continue to actively support Premier Oil as they seek to bring in another partner for the project.  As we get closer to signing a rig contract we will be able to firm up our exploration drilling program, which we expect would expose our shareholders to almost 800 million barrels (net Pmean STOIIP). In addition, with the recently announced board changes, the company has the skill set required for the next phase of the Company's growth."

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

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 FalklandIslands. 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

 

END

 

 

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