Rockhopper Exploration plc (AIM: RKH), the oil and gas exploraiton and production company with key interests in the North Falkland Basin and Greater Mediterranean region, is pleased to announce its results for the year ended 31 December 2015.
- Significant progress in advancing the Sea Lion development
– Pre‐FEED work for Phase 1 completed
– FEED contracts awarded to a set of world class contractors
– Modified project scope and cost improvements have enhanced project economics and lowered the break‐even oil price
- Draft Field Development Plan submitted to the Falkland Islands Government
– Material exploration successes at Zebedee and Isobel Deep
- All‐share merger with Falkland Oil & Gas Limited (“FOGL”), completed post the year end,
– Consolidates Rockhopper’s leading North Falkland Basin acreage position
- Significant production increase achieved in Greater Mediterranean portfolio
– Exit 2015 production rate in excess of 700 boepd
– Completion of Guendalina side track
– First gas achieved at the Rockhopper operated Civita field
- Confirmation of Falkland Islands tax deferment
- Balance sheet strength maintained with cash resources at 31 December 2015 of US$110 million
Pierre Jungels, Chairman of Rockhopper, commented:
“2015 has been transformational for your Company. Through our merger with Falkland Oil & Gas we have consolidated our leading acreage and resource position in the North Falkland Basin. Our exploration campaign has achieved significant success with multiple oil discoveries at Zebedee and Isobel Deep.
The potential of the Isobel‐Elaine complex, in a previously underexplored part of the basin, has been materially de‐risked and supports management’s view that the North Falkland Basin could ultimately deliver a billion barrels of recoverable oil. The Sea Lion project has entered FEED ‐ another significant milestone on the path towards project sanc on.
Going forward, we anticipate additional cost reduc on opportunities being pursued during FEED to further enhance the economics of the Sea Lion project as we move towards a project sanction decision point in mid‐2017. Premier Oil has confirmed its intention to seek an additional partner ahead of taking project sanction and Rockhopper will support Premier Oil in this initiative.
Our Greater Mediterranean business has seen a step‐change in production having achieved an exit rate for 2015 of over 700 barrels of oil equivalent per day. We will con nue to pursue opportunities which add low‐cost, value‐accre ve production to our portfolio whilst preserving our strong balance sheet.
With the Company having made such significant achievements this year, it now seems appropriate to announce my intention to retire from the Board following the Company’s forthcoming AGM on 17 May. I am delighted that current non‐executive director David McManus will succeed me as Non-executive Chairman.”
The Report and Accounts for the year ended 31 December 2015 will be available on the Company’s website at www.rockhopperexploration.co.uk in due course. Hard copies will be posted to those shareholders who elected to receive them on 22 April 2016 together with the documenta on for the 2016 Annual General Meeting.
Rockhopper Exploration plc
Tel: (via Vigo Communications) – 020 7016 9573
Sam Moody – Chief Executive
Fiona MacAulay – Chief Operating Officer
Stewart MacDonald – Chief Financial Officer
Canaccord Genuity Limited (NOMAD and Joint Broker)
Tel: 020 7523 8000
Liberum Capital (Joint Broker)
Tel: 020 3100 2227
Tel: 020 7016 9573