Rockhopper Exploration has provided an update on its previously announced Heads of Terms with Navitas Petroleum LP to farm into the Sea Lion project in the North Falkland Basin.
Rockhopper Exploration is responding to market developments by reducing staffing levels and activity related to the Sea Lion development in the offshore North Falkland basin. The company plans to maintain a smaller team, mainly focused on regulatory, fiscal and financial issues, pending a recovery in the external macro-environment.
At peak oil production from the Falkland Islands offshore Sea Lion oil field, Premier Oil is hoping for 85,000 barrels of oil per day. Over 20 years they anticipate 255 million barrels of oil in a medium-case scenario.
Rockhopper Exploration PLC on Tuesday said it has signed a milestone farm-in deal at the Sea Lion project in the Falkland Islands. Rockhopper shares were 30% higher in early trade in London at a price of 19.44 pence each. Premier was 13% higher at 114.62p.
Premier Oil on Wednesday reduced its forecast for its 2019 operating costs to US$12 per barrel of oil equivalent (boe) from US$ 13 and expects debt reduction to reach the upper end of its US$ 250-350 million target by year-end.
Marking another successful year the Annual Falkland Islands Government Reception took place on Tuesday 4th June at Middle Temple, London.
The challenging complexity and uncertain consequences of Brexit, progress in understandings with Argentina, including the second weekly air link to Sao Paulo, a sound economy with financial stability and the strong commitment of the Falkland Islands population with representative democracy, were outlined by Governor Nigel James Phillips, CBE in his annual address to the elected Legislative Assembly of the Falkland Islands.
Britain’s Premier Oil increased its 2019 production guidance on Thursday, saying output had been boosted by efficiency measures and a late sale from its now-divested Pakistan oil fields. The company said it now expects output to reach 75,000 to 80,000 barrels of oil equivalent per day (boed) this year, from up to 75,000 boed previously.
Premier Oil has taken advantage of its second consecutive year of record oil production to make larger than expected cuts into its still-significant debts. The London-listed oil and gas developer, with interests in the Falkland Islands, expects its financial results to reveal end-of-year debts of US$2.3 billion, after removing US$390 million from the total following a sharp rise in oil output.
The latest report from Global Data, FPSO Industry Outlook, suggests that a total of 74 planned and announced floating production, storage, and offloading units (FPSOs) are expected to start operations globally by 2025. Globally, South America leads with 32 planned and announced FPSO additions by 2025, including four in the Falkland Islands, followed by Africa and Europe with 17 and seven FPSOs, respectively.