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>>Half-year results

Half-year results

2018-09-19T14:10:23+00:0019 September 2018|

Rockhopper Exploration plc (AIM: RKH), the oil and gas exploration and production company with key interests in the North Falkland Basin and the Greater Mediterranean region, is pleased to announce its results for the six months ended 30 June 2018.

Year to date highlights

Sea Lion Phase 1 development – contractors in place; further FEED awards; ramping up activity and development team headcount

  • Letters of Intent signed with all key contractors for a range of services and vendor financing
  • FEED contracts awarded for all outstanding elements of the project scope
  • Field Development Plan substantially agreed with the Falkland Islands Government
  • Environmental Impact Statement public consultation process completed
  • Significant progress made on a number of technical fiscal matters with the Falkland Islands Government
  • Project momentum building with budget approved to expand Operator’s project development team

Building a production base to maintain balance sheet strength and fund future growth

  • Net working interest production averaged 1.1 kboepd in H1 2018
  • Successful Al Jahraa-6 development well at Abu Sennan with oil encountered in multiple reservoirs – well currently being completed for testing and production

Strong H1 financial performance with continued focus on managing costs

  • Revenue of US$5.2 million; cash flow from operations US$4.9 million
  • Cash operating costs of US$11.0 per boe – maintaining a low cost base
  • Continued management of G&A costs – US$2.3 million – down over 50% since 2014
  • G&A costs covered by operating cash flows
  • Balance sheet strength maintained with cash resources of US$46.4 million at 30 June 2018 and no debt

Corporate

  • Alison Baker appointed as Independent Non-Executive Director

Outlook

  • Ramping up of Sea Lion development towards project sanction; focus for 2018 remains on securing senior debt to allow project sanction in mid 2019
  • Year end 2018 cash estimated to be in excess of US$30 million providing continued balance sheet strength
  • Ongoing drilling at Abu Sennan with two further wells planned during 2018
  • Ombrina Mare arbitration hearing date set for early February 2019
  • Continued pursuit of new venture opportunities to add production and cash flow

David McManus, Chairman of Rockhopper, commented:

“We continue to work closely with the Operator to progress Sea Lion and, while much work still needs to be done to finalise the funding of the development, we are very encouraged with the current momentum in the project and to have agreed the increased activity and headcount proposed by Premier. With oil prices currently above US$75 per barrel we are focussing all of our efforts on doing everything possible to allow project sanction to take place next year.

“Notwithstanding the increased activity and spend on Sea Lion, the Company continues its ongoing focus on cost control and has maintained a strong balance sheet with cash resources at mid 2018 of US$46 million and no debt.”

Enquiries:

Rockhopper Exploration plc

Sam Moody – Chief Executive Officer
Stewart MacDonald – Chief Financial Officer
Tel. +44 (0) 20 7390 0234 (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)

Richard Crichton
Tel. +44 (0) 20 7418 8900

Vigo Communications

Patrick d’Ancona/Ben Simons
Tel. +44 (0) 20 7390 0234

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”).

Note regarding board appointment of Alison Baker

Alison Claire Baker (aged 47) has confirmed that other than the information disclosed below there are no matters to be disclosed under Rule 17 and paragraph (g) of Schedule 2 of the AIM Rules.

Current Directorships:

Kaz Minerals PLC

Centamin Plc

Alison Baker Associates Limited

Futurewhyse Limited

Shareholding in the Company:

None

View full press release: Half-year results for the six months to 30 June 2018