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What next for Rockhopper Exploration, can it return to recent highs?

Rockhopper appears to have stabilised, technical analysis suggests the price can rise - but how long will traders need to wait?
Offshore oil operations
Partnering will be the key to unlocking the Sea Lion field

Traders looking at Rockhopper Exploration Plc (LON:RKH) ought to be looking for the share price to rise above 31p, one technical analyst has said.

Zak Mir, aka the King of Charts, in a Tips TV segment for Proactive Investors, highlights that Rockhopper shares have support at 25p.

“From a technical perspective you want to see it back above the 200-day moving average, at 31p, in order to be looking for 40p to retest the year’s highs,” he said.

WATCH: Zak’s analysis right now

He also acknowledged the chart does appear a little dull at present and wouldn’t be something that bullish traders would be rushing into.

“The main headline here would be that we’re not heading downwards at a rate of knots, which is what the share price was doing into the beginning of this year.”

Sea Lion remains the attraction, but Egypt is also in the spotlight

For many investors the Sea Lion field remains the main attraction, though partner and operator Premier Oil PLC (LON:PMO) essentially has the project’s development on hold.

Premier seeks an additional partner to share the costs of bring the Falklands oil field into production.

The investment required to build Sea Lion has come down US$300mln, but still weighs in at a very chunky US$1.5bn.

Interim results, last month, Rockhopper said it would aid Premier in its search for a partner, and in the meantime, its attentions have been on assets acquired in Egypt.

September’s results revealed that output averaged around 600 barrels of oil equivalent a day in the first six months in the form of gas from Italy.

The recent acquisition of Beach Egypt for just under US$12mln will add a further 1,500 barrels a day.

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