On top of a hot streak for oil prices, investors in Rockhopper Exploration (RKH) have been handed a triumvirate of good news. First, shareholders can now expect Sea Lion, the North Falkland Basin project in which Rockhopper has a 40 per cent stake, to be sanctioned by the end of 2018.
Although the development will require $1.5bn (£1.1bn) to get to first oil, several letters of intent have been signed, and a mixture of senior debt and subordinated contractor funding sources have been identified. Second, Rockhopper’s concession at Abu Sennan in Egypt now amounts to production of 835 barrels of oil equivalent per day (boepd), following several successful work-over wells, bolstering expectations of “a healthy inventory of prospects” and a possible fresh exploration well in 2018. Third, arbitration proceedings against the Italian state, related to losses sustained in the cancellation of the Ombrina Mare project, have been expedited to early 2019.
