Rockhopper Exploration, the oil and gas company with key interests in the North Falkland Basin, has announced its unaudited results for the six months ended 30 June 2023.
YEAR TO DATE HIGHLIGHTS
Sea Lion and North Falkland Basin
- Reworked base case project reduces costs while increasing total production
- Total barrels developed: 269mmbbls
- Production plateau: 80,000 bbls/d
- Pre first oil capex US$1.3bn, assuming leased FPSO
- Life of field costs less than US$30 per barrel
- Sea Lion is competitive on a global scale
- Base case gross joint venture NPV10 >US$4bn at $77 Brent
- Work to refine project phasing and financing plan continues
Ombrina Mare
- Rockhopper awarded c.€190 million plus interest (the "Award") in August 2022 following successful arbitration outcome
- Italy seeking to have the Award annulled; Rockhopper contesting annulment
- Stay of Enforcement lifted, escrow arrangements in place
- Rockhopper exploring all avenues to secure value
- Annulment hearing set for January 2024
Corporate and Financial
- Continued focus on costs post completion of successful capital raise in July 2022
- At 30 June 2023, the Group had 53.9 million unexercised 9 pence warrants in issue, with an expiry date of 31 December 2023
- Cash and term deposit balance at 30 June 2023 of US$6.7 million
- Highly experienced new Non-Executive Chair (Simon Thomson) and Non-Executive Director (Paul Mayland) assuming roles from 1 October 2023
Outlook
- Work continues on refining new lower cost Sea Lion development and financing plan
- Stay on Enforcement on Award lifted - Rockhopper in a position to commence legal proceedings against Italy for non-payment
- Navitas targeting Sea Lion FID during 2024
Keith Lough, outgoing Chairman of Rockhopper, commented:
'After nine challenging and enjoyable years, John Summers and I will leave Rockhopper in the strongest position your Company has seen for some considerable time. We have a committed, focussed, and capable partner that has already worked up a hugely impressive lower cost, highly capital efficient project at Sea Lion. In addition, the Stay of Enforcement on our €190million ICSID award is now lifted and we are working with our advisers on all avenues to monetise this award. Our 2022 capital raise allowed us to extend our licences, bring Navitas on board and continue to contest the Arbitration. Finally, we welcome Simon Thomson and Paul Mayland to the Board, bringing with them a wealth of directly relevant experience in the industry and detailed knowledge of Sea Lion.
'I wish the new Board and all holders every success for the future, and I know your Company remains in the best possible hands.'
Source: Rockhopper Exploration
