18th May 2018 11:49
LONDON (Alliance News) - Rockhopper Exploration PLC at its annual general meeting on Friday said 2018 could be "transformational" as it seeks to secure funding for its Sea Lion project.
Rockhopper said it has nearly completed selecting the main contractors for the project, in the Falkland Islands, as well as vendor funding worth USD400.0 million.
It said a lead bank is to be appointed "imminently" after several banks showed support for the project, with the lead bank to help arranging senior debt facilities.
Chairman David McManus said: "With Brent oil prices currently above USD75.00 per barrel, combined with the cost efficiencies secured through FEED and engagement with the contractors, the economics for the Sea Lion project are highly attractive."
Looking to its greater Mediterranean portfolio, Rockhopper said operations are meeting its objective of providing a production and cash flow base to fund operating costs and protect its balance sheet. Cash, it added, is preserved for investment mainly in the Falklands.
It has an "exciting" four-well drill campaign planned in Egypt to start in the middle of the year as well as infill development and exploration across in Abu Sennan and El Qa'a Plain assets.
In Italy, Rockhopper said an arbitration hearing for its Ombrina Mare field against Italy is scheduled for early 2019, with an outcome expected in the middle of next year.
The company said: "Rockhopper believes it has strong prospects of recovering very significant monetary damages - on the basis of lost profits - as a result of the Republic of Italy's breaches of the Energy Charter Treaty. All costs associated with the arbitration are funded on a non-recourse basis from a specialist arbitration funder."
Shares were 4.3% higher on Friday at 39.12 pence each.
Related Shares:
Rockhopper