MercoPress. South Atlantic News Agency

Rockhopper Exploration PLC has announced their interim results.

Highlights


? Successful placing and listing on AIM, raising £15m before expenses.
? Award of two further licences in the North Falkland Basin, making Rockhopper the largest acreage holder in the North Falkland Basin.
? 2D seismic survey commissioned on our 100% owned acreage.
? Agreement signed with Desire Petroleum to farm-in to 7.5% of two licences adjacent to Rockhopper owned acreage.
? Management team strengthened

Commenting on the results, Chairman Pierre Jungels said: ?Our strategy in the Falklands is to mature a number of high quality drillable prospects on our 100% held acreage and to be ready for a substantial drilling campaign once the availability and cost of drilling units are more favourable'.

Managing Director, Sam Moody said ?The steps we have taken over the last six months have laid the groundwork for the long-term future of the company'.

Chairman's report

This interim report for the six months ended 30 September 2005, is the first report following our successful placing and listing on AIM on 15th August 2005. As expected the Group incurred a loss for the period.

The net proceeds of the placing of £13.9 million are on interest bearing deposits along with funding already in the Group and will be drawn down as required in line with our plans for the business.

Rockhopper Exploration is currently the largest acreage holder in the North Falkland Basin with 100% interests in four offshore production licences (PL023, PL024, PL032 and PL033) which cover approximately 5,800 sq. km. In addition the Group has agreed to farm?in for 7.5% in Desire Petroleum plc's licences PL03 and PL04 where Desire expect to drill three exploration wells.

PL023 and PL024 were awarded in November 2004 and cover an area of 4,200 sq. km in water depths of less than 200 metres. The licences are close to the Falkland Islands themselves and their southern-most edge is located only 25 km from the Islands. PL023 and PL024 are already covered by 1832 km of 2D seismic data. The Group has signed a contract with Geophysical Service Incorporated (GSI) to undertake a new 2D seismic survey over approximately 900 line kilometers. The survey should be completed early in 2006, with processing and interpretation of the data thereafter.

PL032 and PL033 were awarded in June 2005 and cover an area of 1,620 sq. km in water depths of between 350 and 500 metres, they are already covered by 1546km of 2D and 368 km2 of 3D seismic data. Two wells have been drilled previously on these licences in 1998 by Shell when the oil price was approximately $10 per barrel and both demonstrated the presence of hydrocarbons, one flowing live oil to the surface. A new and significant 3D seismic programme has been designed to cover this acreage.

Prospects and leads

Rockhopper's exploration team has reinterpreted the existing 2D and 3D seismic data covering its licences and has identified a number of prospects and leads which have the potential to contain significant deposits of hydrocarbons. These will be better defined following the planned acquisition of new 2D and 3D seismic data.

PL03 and PL04 are operated by Desire Petroleum plc. Rockhopper will earn an interest of 7.5% of these licences by contributing 15% of the dry hole cost of the expected 3 well exploration programme. The recently acquired 3D seismic data on these licences is very encouraging and we look forward to the commencement of drilling operations once Desire secures a suitable rig.

In summary, Rockhopper has a very exciting and prospective exploration portfolio in relatively shallow water, at a time that the oil industry is fiercely competing for access to that very type of opportunity.

Our strategy in the Falklands is to mature a number of high quality drillable prospects on our 100% held acreage and to be ready for a substantial drilling campaign once the availability and cost of drilling units are more favourable.

More info: www.rockhopperexploration.co.uk