Rockhopper Exploration plc (AIM: RKH), the oil and gas company with key interests in the North Falklands Basin and the Greater Mediterranean region, is pleased to provide the following operational and corporate update in relation to its Egyptian portfolio.
Abu Sennan, Egypt (22% working interest)
Year to date average daily production from the Abu Sennan concession has been maintained at approximately 4,000 boepd gross (approximately 880 boepd net to Rockhopper).
An active programme has been agreed for 2018 including the drilling of one exploration well (“Prospect S”), two development wells and a water injection programme targeting the Al Jahraa field.
A drilling rig has been contracted and is expected to arrive in the concession shortly. The first well is anticipated to spud in the last week of June once rig up and all inspections are completed. It is currently planned that the two development wells will be drilled first (Al Jahraa-6 and Al Jahraa-11), followed by the exploration well at Prospect S.
In addition to increasing production from the Abu-Roash reservoirs, Al Jahraa-6 has been designed to test a deeper exploration target in the Bahariya to test good quality, water wet sands encountered in Al Jahraa-1, but in an up-dip location.
Prospect S is an exploration target in the adjacent fault block to the Al Jahraa field. It has a similar tilted fault block trap and is targeting the same Abu Roash reservoirs that produce at Al Jahraa.
The water injection project is progressing well and injection is expected to commence in early July. The operator has performed the hydrotest for the new line from the water injection station to the Al Jahraa-9 injection well. Preparations for installation of all the necessary equipment are in the final stages. The development programme at the Al Jahraa field is designed to increase reserves and field production rates.
Drilling on the Abu Sennan concession is expected to last for approximately six months with total capital expenditure, net to Rockhopper’s 22% interest, of approximately US$3 million.
El Qa’a Plain, Egypt (25% working interest)
Commitment well Raya-1X was spudded on 17 June 2018. This well is targeting the Nukhul Formation reservoir, known from the Gulf of Suez, in a tilted fault block structure, close to where oil has been tested from the same formation.
Expenditures on the El Qa’a Plain concession, net to Rockhopper’s 25% interest, are anticipated to be less than US$1 million.
Egypt payment situation
Rockhopper continues to experience an improving payment situation in Egypt with a number of payments from Egyptian General Petroleum Corporation (“EGPC”) towards its outstanding receivables balance received in recent months.
As at end May 2018, Rockhopper’s EGPC receivable balance was approximately US$2.2 million (unaudited).
Rockhopper Exploration plc
Sam Moody – Chief Executive
Stewart MacDonald – Chief Financial Officer
Tel. +44 (0) 20 7830 9704 (via Vigo Communications)
Canaccord Genuity Limited (NOMAD and Joint Broker)
Henry Fitzgerald-O’Connor/James Asensio
Tel. +44 (0) 20 7523 8000
Peel Hunt LLP (Joint Broker)
Tel. +44 (0) 20 7418 8900
Patrick d’Ancona/Ben Simons
Tel. +44 (0) 20 7830 9704
Note regarding Rockhopper oil and gas disclosure
This announcement has been approved by Rockhopper’s geological staff which includes Lucy Williams (Geoscience Manager) who is a Chartered Geologist, a Fellow of the Geological Society of London and a Member of both the Petroleum Exploration Society of Great Britain and American Association of Petroleum Geologists, with over 25 years of experience in petroleum exploration and management and who is the qualified person as defined in the Guidance Note for Mining, Oil and Gas Companies issued by the London Stock Exchange in respect of AIM companies.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (“MAR”).