Falklands: Rockhopper targets lower costs for Sea Lion project and potential entry of Navitas Petroleum

Tuesday, October 5th 2021 - 09:20 UTC

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Chairman Keith Lough announced that it will work for Harbour’s orderly exit from the Falklands

Rockhopper Exploration presented on the last day of September its half-year interim report, which follows on the shock announcement from Harbour Energy that it will seek to exit the Sea Lion Project in the North Falkland Basin.

However, Keith Lough, Chairman of Rockhopper announced that ”Work will continue on a number of fronts over the coming weeks, including: (1) progressing Harbour’s orderly exit from the Falklands; (2) advancing plans for an alternative, lower cost, development of Sea Lion; and (3) progressing discussions with Navitas Petroleum around their potential entry to the project.”

In the highlights chapter, Rockhopper points out: announcement by Harbour Energy plc (“Harbour”) in September 2021 that the Sea Lion project does not fit its corporate strategy and therefore that it will seek to exit the project and its North Falkland Basin licenses. Rockhopper to continue to pursue the Sea Lion project with a handover process to commence shortly Discussions ongoing with Navitas Petroleum LP (“Navitas”) regarding its potential entry to the Sea Lion project Extension of the Company’s North Falkland Basin Petroleum Licenses, including the Sea Lion Discovery Area, to 1 November 2022.

As to the Outlook, Formal exit by Harbour – Rockhopper expects to regain operatorship and 100% working interest in Sea Lion and key North Falkland Basin licenses, subject to necessary consents Progress an alternative, lower-cost development scheme for Sea Lion utilizing the existing extensive design and engineering work undertaken for the project in recent years Potential farm-out of Sea Lion project to Navitas, and outcome awaited in relation to Ombrina Mare arbitration – seeking significant monetary damages.

Regarding Corporate and financial, Continued focus on corporate costs resulted in reduced administrative expenses – G&A US$1.6 million in H1 2021(H1 2020: US$2.7 million); Further corporate cost savings implemented post period end; Cash resources of US$7.1 million as at 30 June 2021.

On 30 September, Rockhopper also made a retail investor meeting presentation which can be seen at https://rockhopperexploration.co.uk/wp-content/uploads/2021/10/RKH-Retail-investor-presentation-September-2021