A "transformational" year for Falklands Sea Lion development, says Rockhopper Exploration

A “transformational” year for Falklands Sea Lion development, says Rockhopper Exploration

Saturday, May 19th 2018 - 06:58 UTC

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Rockhopper said it has nearly completed selecting the main contractors for the project, in the Falklands, as well as vendor funding worth US$ 400 million.

Chairman David McManus said that the economics for the Sea Lion project have become highly attractive

Rockhopper Exploration PLC at its annual general meeting on Friday said 2018 could be “transformational” as it seeks to secure funding for its Sea Lion project in the Falkland Islands. Rockhopper said it has nearly completed selecting the main contractors for the project, in the Falklands, as well as vendor funding worth US$ 400 million.

It said a lead bank is to be appointed “imminently” after several banks showed support for the project, with the lead bank to help arranging senior debt facilities.

Chairman David McManus said: “With Brent oil prices currently above US$ 75.00 per barrel, combined with the cost efficiencies secured through FEED and engagement with the contractors, the economics for the Sea Lion project are highly attractive.”

Looking to its greater Mediterranean portfolio, Rockhopper said operations are meeting its objective of providing a production and cash flow base to fund operating costs and protect its balance sheet. Cash, it added, is preserved for investment mainly in the Falklands.

It has an “exciting” four-well drill campaign planned in Egypt to start in the middle of the year as well as infill development and exploration across in Abu Sennan and El Qa'a Plain assets.

In Italy, Rockhopper said an arbitration hearing for its Ombrina Mare field against Italy is scheduled for early 2019, with an outcome expected in the middle of next year.

Shares were 4.3% higher on Friday at 39.12 pence each. Finally, the company and its partner Premier Oil appears to be gaining some traction for the Sea Lion field, host to an estimated 517mln barrels of oil.

Categories: Economy, Energy & Oil, Investments, Falkland Islands, International.

Top Comments

Disclaimer & comment rules

Brit Bob
We've come along way since -

Regarding Falklands oil exploration, Argentine Foreign Minister Jorge Taiana stated in February 2010, that his Government would take 'all measures necessary to preserve our rights' and also reiterated that Argentina had a permanent claim' on the islands, saying 'Buenos Aires would complain to the UN over the oil project and might take the case to the International Courts of Justice in the Hague.' (British Drilling For Falklands Oil Threatens Argentine Relations, Pope, F. , 13 Feb 2010 and Potential Drilling off Falkland, Provokes Tension Between Argentina & UK, IRRU News, 17 Feb 2010).
May 19th, 2018 - 08:51 am +2
Jo Bloggs
Nobody will know for sure until the decision is made but it’s looking increasingly promising. We’ll be ready to respond quickly when we know but if it doesn’t happen now, or ever, so be it. We have a very sound economy either way.

So what do the Malvinista deadbeats fancy at present?
There is oil? or
It’s Argentine oil so get you hands off it?
...or are you just going to continue sitting up on that safe old fence?

I say there IS oil and that it is Falklands oil.

I thought Rockhopper shares must have been on the rise because we haven’t had Mike Bingham giving us updates for a while.
May 19th, 2018 - 02:56 pm +2
Anti-Muppet
Firstly, it's the U.K Juana, and you cannot return something that was never Argentine.
May 23rd, 2018 - 07:47 am 0

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