Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Rockhopper Exploration says focus will shift onto Sea Lion financing

Much of the recent activity and attention has been on Sea Lion's engineering design - the next will be commercial, fiscal and financing matters.
offshore oil drilling rig
Rockhopper meanwhile produced 1,350 boepd in the Med

Rockhopper Exploration Plc (LON:RKH) chairman David McManus says the focus will shift onto the Sea Lion field’s commercial, fiscal and financing elements of the project.

Last year, the project’s engineering design was advanced towards conclusion.

McManus expects the more stable crude price to be more supportive to the group’s plans for the Falklands oil field.

"With the spot price for Brent crude fluctuating around $55 per barrel in early 2017, and the cost efficiencies realised through the FEED process, the board is convinced the economics of the Sea Lion project are sufficiently robust to be sanctioned in the current environment, assuming the required capital investment can be secured,” McManus said.

Also in 2016, there was an independent audit which confirmed some 517mln barrels of contingent oil resources (2C) - and 3C resources set at 900mln barrels - and the field development plan and draft environmental impact statement were both updated.

Investors will, meanwhile, be watching Premier Oil PLC (LON:PMO), the lead partner in the Sea Lion project, as it closes its long awaited refinancing which is expected to stabilise the group’s financial position, albeit with some caveats for its growth plans.

Attentions are on Premier’s possible plans to bring in an additional partner to support the Sea Lion project, and whatever decisions are made will impact the potential timelines for the development.

At present, Premier has a loose timetable for Sea Lion’s development to first oil – which is slated as being after 2021.

A revenue business in the Mediterranean

In the meantime, Rockhopper has been building a production business in the Mediterranean (operations in Italy and Egypt).

Production for the twelve months to December 31 amounted to 1,350 barrels oil equivalent per day, generating around US$7.4mln in revenue.

The company reported a paper profit of US$98mln, due to the ‘excess of fair value’ associated with the prior acquisition of Falkland Oil & Gas (FOGL), meanwhile, it reported a US$21mln outflow of cash from operating activities.

Rockhopper ended 2016 with US$81mln of cash and US$427mln of net assets.

 

Subscribe to the newsletters for the best of Proactive Investors every day - SIGN UP HERE

View full RKH profile View Profile

Rockhopper Exploration Plc Timeline

Related Articles

oil and gas operations
April 26 2018
The Verbier discovery was a breakthrough in 2017, and the 2018 progammes aims to follow up that success.
1532936443_uranium.jpg
October 02 2018
The Salamanca project retains considerable support locally
Ungani oilfield workers
Fri
Buru expects to solidly drill the Ungani West 1 exploration well for 32 days before moving equipment back to Ungani 4ST1 well.

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use