Rockhopper Exploration PLC (AIM:RKH) has launched a $140 million equity raise to fund the Phase 1 Sea Lion oil field development in the Falklands.
New shares will be sold at a price of 53p, and investors will also receive share warrants (exercisable at 80p).
The funding proceeds will be held in escrow until the Sea Lion development is given the go-ahead and returned to investors if the project does not proceed beyond a pending Final Investment Decision.
Rockhopper’s estimated share of Phase 1 development costs comes in at $102 million, so the equity funding will also provide contingency.
It is the latest twist in the Sea Lion story, which, since its discovery, has been the subject of multiple farm-out and financing efforts.
Finally, the Falkland oil project is on the cusp of development.
“Having discovered Sea Lion some 15 years ago, we are obviously delighted to be able to announce this equity fundraise, which we are confident puts Rockhopper in the strongest possible position to take FID by the end of this year and to reach project completion of the first phase of Sea Lion with no additional equity dilution,” said chief executive Sam Moody.
Placing details
The equity raise comprises a number of elements.
A ‘firm’ placing tranche will initially raise $115 million, whilst a ‘conditional’ tranche of $25 million requires shareholder approval.
A separate open offer process will seek to raise up to €8 million
All proceeds are to be held conditionally in escrow and only released upon completion of the FID before a 31 March 2026 deadline.
The Phase 1 funding plans are predicated on the project securing a $1 billion senior debt facility and joint venture partner Navitas financing, which would cover two-thirds of the development costs.
“We look forward to continuing to work with and support Navitas in its role as Operator in bringing Sea Lion onto production and finally crystallising the value in the asset for all of our stakeholders,” Sam Moody added.