Falkland Islands-focused Rockhopper Exploration Plc (LON:RKH) said it expects to finish 2016 with around £65mln on the bank – which equates to more than two-thirds of the company’s current market capitalisation.
Its coffers will be topped up with a final insurance payout from the Isobel Deep well, which should keep it financed while it ploughs through the front end engineering and design phase for the Sea Lion field in the South Atlantic.
It said the economics of the Sea Lion continue to improve, although the investment required get it to first oil still is somewhere in the order of £1.2bn (US$1.5bn).
Development is contingent on Sea Lion’s operator, Premier Oil (LON:PMO), finding a buyer for part of its stake.
In the meantime Rockhopper has producing assets in Egypt, which are churning out a net 1,350 barrels a day of the black stuff.
Finally, the company said arbitration will begin early in 2017 over a decision by the Italian authorities not to award the company a production concession covering the Ombrina Mare licence.