REG - Rockhopper Exp plc - Sea Lion Operator’s Update

Rockhopper ExplorationAnnouncement

24/03/2025 07:45

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RNS Number : 8405B  Rockhopper Exploration plc  24 March 2025

  24 March 2025

 

Rockhopper Exploration plc

("Rockhopper" or the "Company")

Sea Lion Operator's Update

Rockhopper Exploration plc (AIM: RKH), the oil and gas company with key
interests in the North Falkland Basin ("NFB"), notes the recent publication by
Navitas Petroleum LP ("Navitas" or the "Operator") of and an updated NFB
independent resource report conducted by Netherland Sewell & Associates
("NSAI") (the "March 2025 NSAI Independent Report") on behalf of Navitas.
The report reflects work carried out to mature the resource base and
accelerates later phases of the development programme in the build up to
FID.  Overall resources at Sea Lion remain unchanged.  As a result of the
work carried out, a significant number of barrels have been moved from
'Development On Hold' to 'Development Pending' classification.

 

March 2025 NSAI Independent Report

 

The new March 2025 NSAI report, which Rockhopper has not reviewed, categorises
the Sea Lion resources into the following developments:

 

·    Northern area, 3 phases

·    Central area, 2 phases

·    Northern Area Phases 1 and 2 will be developed using a redeployed and
upgraded FPSO that is expected to be secured upon FID.

·    Northern Area phase 3 and the Central Area Phases 1 and 2 will
require a substantially larger replacement FPSO to be identified and secured.

 

The Development on Hold category of 178 MMbbls 2C includes gross resources
within Sea Lion and Isobel/Elaine, that could be developed under future phases
but for which there is currently no published development plan.

 

Key Information

 

2C Contingent Resources (Development Pending) phased development concept for
the Sea Lion field:

 

·    64 wells

·    Phased Development

 

Northern Area

 

Phase 1                                11 wells,
6 pre drilled, 170mmbbls

Phase 2                                12 wells, 149mmbbls

Phase 3                                16 wells,
95mmbbls

 

Central Area

 

Phase 1                                12 wells,
212 mmbbls

Phase 2                                13 wells,
102 mmbbls

 

·    Total barrels developed (all phases) 730 mmbbls

·    Phase 1 + Phase 2 peak production rate 55,000 bbls/day, increasing up
to 150,000 bbls/day once all phases have been developed

 

Navitas continues to estimate Capex to first oil on phase 1 of c$1.4 bn and in
this regard has entered into a number of FEED agreements including an MOU for
an FPSO which is currently operating in the North Sea, along with various
agreements relating to the provision of subsea equipment. Navitas's target for
FID also remains mid-year 2025.

 

Navitas published the March 2025 NSAI Independent Report which is available on
Navitas' website, and contains the following resource estimates (rounded, for
oil only):

 

                         1C (mmbbls)  2C (mmbbls)*  3C (mmbbls)
 Development Pending     473          730           944
 Development On Hold     75           178           295
 Development Not Viable  6            10            15
 Total                   554          917           1,254

*Totals may not sum precisely due to rounding adjustments

 

As the project moves further along the path towards FID, Rockhopper intends to
commission its own Independent Resource Evaluation which will be published
later this year.

 

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

 

 

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

 

Rockhopper is not an addressee and has not been party to the production of the
March 2025 NSAI Independent Report. The March 2025 NSAI Independent Report has
been produced to PRMS standards. Rockhopper's technical team which includes
Lucy Williams (BSc Geology, MSc Petroleum Geology, Chartered Geologist) has
reviewed the content of this announcement but has not had opportunity to
review the March 2025 NSAI Independent Report, although has confidence in the
experience and suitability of NSAI to produce such an independent report.

 

The last independent resource report commissioned directly by Rockhopper was
the ERCE 2016 Report which had an estimated 2C value of 517 mmbbls.

 

 FDP                   Field Development Plan
 FEED                  Front-End Engineering Design
 FPSO                  Floating Production Storage and Offloading
 FID                   Final Investment Decision
 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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