MercoPress. South Atlantic News Agency

Rockhopper cuts losses and is progressing on Falklands' oil field development

Rockhopper has made “significant” progress during 2018 to advance and execute financing for the Sea Lion phase 1 development.

Rockhopper Exploration PLC on Tuesday said its loss narrowed in 2018 as it progresses on field development in the Falkland Islands. The oil & gas exploration and production company's loss narrowed in 2018 to US$ 7.1 million from US$ 9.0 million a year before, as revenue climbed to US$ 10.6 million from US$ 10.4 million.

Rockhopper has made “significant” progress during 2018 to advance and execute financing for the Sea Lion phase 1 development.

Submission of project information and a formal funding application is expected in the second quarter of 2019.

“Sea Lion has the potential to be transformational for Rockhopper and the Falkland Islands as a whole. Securing funding is the last remaining major milestone before Sea Lion can reach final investment decision and all efforts are focused on securing such financing to allow the project to move into the development phase,” said Chief Executive Sam Moody.

Meanwhile, Rockhopper's Greater Mediterranean portfolio, which includes operations in Egypt and Italy, continues to provide a low-cost, short-cycle production base which has delivered strong revenue and operating cash flows, Rockhopper said.

The increase in revenue in 2018 reflects a rise in oil and gas prices, the company noted.

However, there was a modest reduction in production to 1,064 barrels of oil equivalent daily in 2018 compared to 1,184 barrels daily a year prior, due to natural field decline at Guendalina and pipeline issues at Civita.