REG - Rockhopper Exp plc - Publication of Independent Resource Evaluation

Rockhopper ExplorationAnnouncement

03/06/2025 07:00

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RNS Number : 1151L  Rockhopper Exploration plc  03 June 2025

3 June 2025

Rockhopper Exploration plc

("Rockhopper" or the "Company")

 

Publication of Independent Resource Evaluation

 

Rockhopper Exploration plc (AIM: RKH), the oil and gas company with key
interests in the North Falkland Basin ("NFB"), is pleased to announce the
publication of an independent resource evaluation conducted by Netherland,
Sewell & Associates, Inc. ("NSAI") on behalf of Rockhopper.

 

Key information:

-      Unrisked gross contingent resources 2C 917 mmbbls

o  321 mmbbls net to Rockhopper

-      Unrisked gross contingent resources development pending 2C 727
mmbbls

o  255 mmbbls net to Rockhopper

-      Value of the Rockhopper net 2C 255mmbbls 35% working interest in
Sea Lion is US$1.8bn

o  net of royalties and taxes at an oil price of US$70 Brent

 

Rockhopper holds a 35% working interest in Sea Lion and associated NFB
licences and benefits from various loans from Navitas Petroleum ("Navitas") in
relation to the development, which have been detailed in previous
announcements.

 

Highlights of NSAI independent resource evaluation (oil only):

 

 Unrisked Gross (100%) Contingent Resources

 Oil (mmbbls)
                         Low estimate  Best estimate  High Estimate
                         1C*           2C*            3C*
 Development Pending     470           727            939
 Development On Hold     78            180            300
 Development Not Viable  6             10             15

 Total                   554           917            1,254

*Totals may not sum precisely due to rounding adjustments

 

 

 Unrisked Working Interest Contingent Resources

 Oil (mmbl)
                         Low estimate  Best estimate  High Estimate
                         1C*           2C*            3C*
 Development Pending     165           255            329
 Development On Hold     27            63             105
 Development Not Viable  2             3              5

 Total                   194           321            439

*Totals may not sum precisely due to rounding adjustments

 

 

 Economic Analysis      Oil
 Oil price US$70 Brent  (MMBBL)                         NPV 10%
                        Unrisked Working Interest       Net Contingent Cash Flow
                        Development Pending             After Falkland Islands Royalty
                        Contingent Resources            and Corporate Taxes (US$mm)

 Low estimate (1C)      165                             1,046
 Best estimate (2C)     255                             1,845
 High estimate (3C)     329                             2,474

 

The development scenario assumed in the report underlying the NPV calculation
aligns with the previously disclosed multi-phase 2 FPSO scheme comprising the
Northern Development Area phases 1, 2 & 3 along with the Central
Development Area phases 1 & 2.

 

Navitas continues to estimate Capex to first oil on phase 1 of cUS$1.4 bn and
in this regard has entered into a number of agreements including an MOU for a
FPSO which is currently operating in UK offshore waters, along with various
contracts for critical path long lead items including provision of subsea
equipment and flexible flowlines.

 

Additional notes

 

In a change to previous naming conventions, the entirety of the oil deposits
in licences PL032 and PL004 are now referred to as Sea Lion.  Previously,
Rockhopper had referred to Sea Lion separately from the Isobel / Elaine
accumulation; that is no longer the case.

 

The difference of 3 mmbbls between the 2C development pending 727 mmbbls
contained in the Rockhopper NSAI report and the 2C development pending 730
mmbbls in the Navitas NSAI report is a result of running the reports at
different oil price decks resulting in a small change to the economic cut off
for the field.  All of the underlying data and other assumptions are
consistent.

 

NSAI have also provided estimates of gross and working interest of i)
Contingent Gas Resources, and ii) Prospective Oil and Gas Resources however
the Company has not reproduced them in this summary as there is no plan for
their development in place. NSAI's report also includes economic analysis with
a low and high oil price sensitivity.

 

A full copy of the report will be available later today on the Rockhopper's
website: https://rockhopperexploration.co.uk/
(https://rockhopperexploration.co.uk/)

 

 

Sam Moody, Chief Executive Officer of Rockhopper, commented:

 

"We are delighted that NSAI have been able to confirm the best estimate
potential value of Rockhopper's 35% working interest in Sea Lion is US$1.8bn
net of taxes at an oil price of US$70.

 

"We continue to work with the Operator to unlock this potential value for all
stakeholders."

 

 

Enquiries:

 

Rockhopper Exploration plc

Sam Moody - Chief Executive Officer

Tel. +44 (0)20 7390 0230 (via Vigo Consulting)

 

Canaccord Genuity Limited (NOMAD and Joint Broker)

Henry Fitzgerald-O'Connor/James Asensio/Charlie Hammond

Tel. +44 (0) 20 7523 8000

 

Peel Hunt LLP (Joint Broker)

Richard Crichton/Georgia Langoulant

 

Vigo Consulting

Patrick d'Ancona/Ben Simons/Fiona Hetherington

Tel. +44 (0) 20 7390 0234

 

 

Resource Disclosure

 

The NSAI Independent Resource Evaluation has been produced to PRMS standards.
approved by the Society of Petroleum Engineers ("SPE").

 

Lucy Williams (BSc Geology, MSc Petroleum Geology, Chartered Geologist) the
Company's Geoscience Manager has reviewed and approved the technical
information contained within this announcement.

 

 

 FEED                  Front-End Engineering Design
 FPSO                  Floating Production Storage and Offloading
 1C                    Low estimate scenario of contingent resources
 2C                    Best (Most Likely, Mid) estimate scenario of contingent resources
 3C                    High estimate scenario of contingent resources
 Contingent Resources  Those quantities of petroleum which are estimated on a given date, to be
                       potentially recoverable from known accumulations by application of development
                       project, but which are not currently considered to be commercially recoverable
                       owing to one or more contingencies
 MOU                   Memorandum of Understanding
 NSAI                  Netherland Sewell & Associates
 bbls/d                Barrels of crude oil per day
 mmbbls                Millions barrels of oil
 PRMS                  2018 Petroleum Resources Management System approved by the Society of
                       Petroleum Engineers

 

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