26th Aug 2026 10:41
(Alliance News) - Rockhopper Exploration PLC on Wednesday said the net present value of its interest in the Sea Lion field in the Falkland Islands has increased following an updated independent assessment.
The Salisbury, England-based oil and gas company, which owns a 35% interest in the Sea Lion development, said the assessment by the Dutch company Sewell & Associates Inc increased the net present value of its interest by about USD788 million compared with the previous independent resource evaluation.
The increase reflects higher resource estimates, the accelerated development of the central development area and updated oil price assumptions, the company said.
The assessment, which uses a base-case oil price of USD82.99 a barrel for 2026, USD76.74 for 2027 and USD75.95 thereafter, puts gross proved and probable reserves at 314.3 million barrels of oil, of which Rockhopper's 35% working interest is 110.0 million barrels.
Future net revenue attributable to Rockhopper, after royalties, capital costs, abandonment costs, operating expenses and estimated Falkland Islands corporate income taxes, is estimated at USD3.40 billion on an undiscounted basis, with a net present value at a 10% discount rate of USD1.18 billion.
The assessment also identified 626.1 million barrels of best-estimate contingent resources on a gross basis, giving Rockhopper a share of 219.1 million barrels. The development-pending resources have a net present value of USD1.78 billion.
Rockhopper said the development scenario assumes the Aoka Mizu floating production, storage and offloading vessel lease will be terminated once field-level production falls below 125,000 barrels of oil per day, after which the OSX-1 vessel will service Sea Lion alone.
Shares in Rockhopper were flat at 73.63 pence on Wednesday morning in London.
By Niall Holden, Alliance News reporter
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