MercoPress. South Atlantic News Agency

Rockhopper denies FT; no agreement entered with BHP Billiton

Rockhopper Exploration plc the AIM traded (RKH) oil and gas explorer with licences in the North Falkland Basin, notes the report in the Financial Times today entitled “Smaller producers get ready for consolidation”.

The report wrongly quotes BHP Billiton as having bought into Rockhopper's assets. Rockhopper holds a 100% interest in North Falkland Basin Licences PL023, PL024 PL032 and PL033 and holds a 7.5% interest in Licences PL003 and PL004. Technical work done on the Rockhopper licences has indicated Director's estimates of unrisked recoverable reserves of 4.3 billion barrels and in addition has identified a multi tcf gas prospect. The acreage has both proven oil and proven gas and is located in relatively shallow water. Work done at the time of admission to AiM indicated that a discovery on Rockhopper acreage could be commercially viable at oil prices as low as US$25 per barrel. Rockhopper has no debt and had cash of over £4 million at the end of September 2008 (Rockhopper's half year end). The financial position of the Company has been unaffected by the recent turmoil in global banking. While Rockhopper has not entered into any agreement with BHP Billiton, it can confirm that it is in discussion with a number of potential farm-out partners and is also continuing the search for a rig in conjunction with other operators in the North Falkland Basin.