Rockhopper Exploration plc, the oil and gas exploration and production company with key interests in the North Falkland Basin, announces its unaudited results for the six months ended 30 June 2021.
Year to date highlights
· 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 licences
· 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 Licences, including the Sea Lion Discovery Area, to 1 November 2022
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
· Formal exit by Harbour - Rockhopper expects to regain operatorship and 100% working interest in Sea Lion and key North Falkland Basin licences, subject to necessary consents
· Progress an alternative, lower-cost development scheme for Sea Lion utilising the existing extensive design and engineering work undertaken for the project in recent years
· Potential farm-out of Sea Lion project to Navitas
· Outcome awaited in relation to Ombrina Mare arbitration - seeking significant monetary damages
Keith Lough, Chairman of Rockhopper, commented:
"Harbour Energy's decision not to proceed with Sea Lion is both a disappointment and an opportunity, affording us greater control through our expected regaining of operatorship and a 100% working interest.
"Sea Lion is a world-class oil field with the scale and potential to create very material value for Rockhopper, its partners and the Falkland Islands as a whole.
"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."