6th Feb 2014 11:10
LONDON (Alliance News) - Rockhopper Exploration PLC said Thursday it expects capital costs for Phase 1 of the Sea Lion development to reach USD5.2 billion, in an update to shareholders.
The North Falkland Basin oil and gas exploration company said in a statement to shareholders ahead of a capital markets day, that the Sea Lion development will utilise a Tension Leg Platform concept. Capital costs are expected to reach USD5.2 billion, comprising of USD3.5 billion for surface facilities and USD1.7 billion for drilling, it said.
Rockhopper said capital expenditure to first oil is expected to be USD3.8 billion. Subsequent gross annual operating expenditure is expected to average USD260 million, including Floating Storage Unit rental and well interventions.
Premier Oil expects to award the Front End Engineering and Design contracts in the second quarter of 2014 and to submit the draft Field Development Plan at the end of this year, said the statement. Also at the end of this year, Engineering Procurement and Construction contracts will be awarded. Field sanction is anticipated in the second quarter of 2015. Rockhopper continues to anticipate first oil 3½ to 4 years after project sanction.
Looking ahead, Rockhopper said that it expects Phase 1 of the Sea Lion Development to recover 293 mmbbl over 25 years.
Shares in Rockhopper were trading up 8.94% at 128.09 pence per share Thursday morning, one of the leading stocks on the AIM market.
By Alice Attwood; [email protected]; @AliceAtAlliance
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
PMO.LRockhopper