TIDMRKH
RNS Number : 0046I
Rockhopper Exploration plc
14 June 2017
14 June 2017
Rockhopper Exploration plc
("Rockhopper" or the "Company")
Operational and Corporate Update
Rockhopper Exploration plc (AIM: RKH), the oil and gas company
with key interests in the North Falkland Basin and the Greater
Mediterranean region, is pleased to provide the following
operational and corporate update.
Sea Lion Phase 1, North Falkland Basin (RKH 40% working
interest)
The Front End Engineering and Design ("FEED") process has
substantially progressed and de-risked the Sea Lion development
with focus in 2017 continuing on the commercial, fiscal and
financing elements of the project.
A number of contractors have now expressed interest in
potentially providing funding for the project and the Company is
hopeful of reaching agreement in principle on key terms over the
coming months with a view to being in a position to sanction the
project during 2018.
Discussions are also progressing with potential providers of
export credit finance to the project.
Abu Sennan, Egypt (RKH 22% working interest)
Al Jahraa SE-2X
Exploration well Al Jahraa SE-2X, situated on the Abu Sennan-5
(Al Jahraa South East) Development Lease, was spudded on 25 April
2017 as the first of a two-well drilling campaign.
The primary target of the well was the Cretaceous Abu Roash-C
(AR-C) reservoir in the fault block immediately to the south of the
Al Jahraa South East field. The target reservoir was dry, but the
well has been side-tracked northwards into the Al Jahraa SE field.
If logging confirms oil pay, the well will be completed as the
first oil producer in the AR-C reservoir in this field giving a
near term increase to average daily production on the
concession.
Al Jahraa-9
Development well Al Jahraa-9 was spudded on 10 June 2017, and
will target the AR-C reservoir at a location deeper than the
current deepest oil penetration at Al Jahraa-4. The primary aim of
the well is to demonstrate the connection between the Al Jahraa and
Al Jahraa South East fields through the oil leg.
The well is anticipated to take approximately 70 days to drill,
evaluate and complete as a producer upon success.
Work over operations
Production at the El Salmiya-2ST1 well has resumed after the
installation of a sucker-rod pump. This operation was deferred from
2016 and two additional workovers, aimed at increasing production,
are planned during the remainder of the year.
Current production from the Abu Sennan concession is
approximately 3,500 boepd gross (approximately 770 boepd net to
Rockhopper).
Egypt payments
Rockhopper has recently received a gross payment of US$5
million, towards its outstanding receivables balance. This is in
addition to the US$1.4 million gross received since 1 January
2017.
Under the terms of the acquisition of Beach Egypt, a proportion
of any payments received are paid to Beach Energy until their
historic receivable position is satisfied.
As at 12 June 2017, Rockhopper's EGPC receivable balance (net of
amounts due to Beach Energy) was approximately US$4.5 million
(unaudited).
Rockhopper's cash balance, as at 12 June 2017, is approximately
US$63 million (unaudited).
Ombrina Mare arbitration
As previously announced, in March 2017 Rockhopper commenced
international arbitration proceedings against the Republic of Italy
in relation to the Ombrina Mare project.
A Request for Arbitration was formally lodged with ICSID in
April 2017 and the Company has now appointed its arbitrator. The
Company anticipates the Arbitral Tribunal to be constituted in Q3
2017.
Rockhopper remains confident that it has strong prospects of
recovering very significant monetary damages as a result of the
Republic of Italy's breaches of the Energy Charter Treaty. Damages
would be sought on the basis of lost profits.
Sam Moody, CEO, commented
"With the current work program in Egypt giving the ability to
quickly compensate for the lost production at Civita, the payment
situation continuing to improve and more low cost exploration to
come we are very pleased at the progress being made in Egypt.
"In the Falklands we are extremely encouraged by the progress
made in securing the funding for Sea Lion where we continue to work
very closely with Premier to progress the project to sanction in
2018."
For further information, please contact:
Rockhopper Exploration plc
Tel: (via Vigo Communications) - 020 7830 9700
Sam Moody - Chief Executive
Stewart MacDonald - Chief Financial Officer
Canaccord Genuity Limited (NOMAD and Broker)
Tel: 020 7523 8000
Henry Fitzgerald-O'Connor
James Asensio
Vigo Communications
Tel: 020 7830 9700
Patrick d'Ancona
Ben Simons
This announcement has been approved by Rockhopper's geological
staff who include Lucy Williams (Geoscience Manager) who is a
Chartered Geologist, a Fellow of the Geological Society of London
and a Member of the Petroleum Exploration Society of Great Britain
and American Association of Petroleum Geologists with over 25 years
of experience in petroleum exploration and management and who is
the qualified person as defined in the Guidance Note for Mining,
Oil and Gas Companies issued by the London Stock Exchange in
respect of AIM companies.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
This information is provided by RNS
The company news service from the London Stock Exchange
END
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