Rockhopper Exploration plc (AIM: RKH), the oil and gas exploration and production company with key interests in the North Falkland Basin, notes the announcement this morning by Harbour Energy plc (“Harbour”) regarding its decision not to proceed with the Sea Lion project.
The Sea Lion project (with independently audited 2C resources in excess of 500 million barrels) was discovered and appraised by Rockhopper as Operator with 100%. The Company has unrivalled knowledge of Sea Lion and the North Falkland Basin having held the acreage since 2004, and plans to continue to pursue the development of Sea Lion.
Rockhopper confirms that it is in discussions with Navitas Petroleum LP (“Navitas”) around its potential entry to the Sea Lion project following Harbour’s decision not to proceed. Rockhopper notes that Navitas and partners have recently raised project financing in excess of $900 million and taken final investment decision on the 330 million barrel deep water Shenandoah project in the US Gulf of Mexico.
The previously announced Heads of Terms with Premier Oil and Navitas will expire on 30 September 2021 (unless extended by mutual consent before that date). If the Heads of Terms expire, Harbour will have an initial 90 days to elect how to proceed with their exit. Rockhopper will continue to be funded (excluding licence fees, taxes and project wind down costs) by Harbour during that period under the terms announced on 7 January 2020 and 30 April 2020.
Rockhopper will now work with Harbour and the Falkland Islands Government to ensure an orderly exit by Harbour from the Falkland Islands.
A further update will be provided in due course.
Sam Moody, CEO of Rockhopper, commented:
“This represents both a difficult moment for Rockhopper and a huge opportunity. Whilst we are disappointed that Harbour has decided to not to proceed with Sea Lion, we remain committed to unlocking its development.
“Navitas’ recent financing on its Shenandoah project demonstrates that funding remains available to independent E&Ps in the international markets for large-scale offshore oil developments and we very much look forward to working with them to progress Sea Lion.”
Rockhopper Exploration plc
Sam Moody – Chief Executive Officer
Stewart MacDonald – Chief Financial Officer
Tel. +44 (0) 20 7390 0234 (via Vigo Consulting)
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