Rockhopper Exploration plc (AIM: RKH), the oil and gas exploration and production company with key interests in the North Falkland Basin, provides the following update in response to current market uncertainty related to COVID-19 and commodity price weakness.
In January 2020, Rockhopper and Premier Oil announced that a detailed Heads of Terms had been signed with Navitas Petroleum to farm in for a 30 per cent interest in the Sea Lion project. Good progress has been made during the first quarter of 2020 to convert the Heads of Terms into fully documented agreements. Despite the current oil price weakness, all parties remain committed to the finalisation of the Navitas farm out agreement with completion subject to agreed consents and approvals.
With the Company’s modest presence in Italy already having been substantially scaled back, the Company’s day to day operations remain unaffected by the spread of COVID-19 with necessary contingency measures in place.
Recent initiatives by the Company, including the sale of Rockhopper Egypt Pty Limited together with the legally binding Heads of Terms signed with Premier Oil place the Company in a relatively stable financial position with cash at 13 March 2020 of approximately US$23 million (unaudited), no debt and with limited exposure to future development costs (excluding licence fees, taxes, costs incurred prior to 1 January 2020 and project wind down costs) at Sea Lion. The Company continues to actively manage its corporate costs with G&A in 2019 of approximately US$5.3 million (unaudited).
In addition, the Company confirms that it intends to announce its full-year 2019 results on or around 7 April 2020.
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)
Tel. +44 (0) 20 7418 8900
Patrick d’Ancona/Ben Simons
Tel. +44 (0) 20 7390 0234