Rockhopper Exploration Plc · LSE:RKH
Rockhopper Exploration — Investor Presentation (November 2017)
19 slides from Rockhopper Exploration's investor presentation, November 2017
Slide 1: Corporate Presentation
Corporate Presentation Building a well-funded, full-cycle, exploration- led E&P company November 2017
Slide 2: Important Notice
Important Notice This Presentation does not constitute an offer or invitation or a solicitation of any offer or invitation for the sale or purchase of any securities in the Company. In addition, it is not intended to form the basis of or act as an inducement to enter into any contract or investment
Slide 3: Strategy for value creation through the cycle
Strategy for value creation through the cycle Building a balanced portfolio in core areas o Focus on North Falkland Basin and Greater Mediterranean o Across the full asset life cycle o Production base to cover costs and enable growth through exploration Maintaining balance sheet strength o Prudent b
Slide 4: North Falkland Basin
North Falkland Basin 4
Slide 5: A strategic acreage position in a world class hydrocarbon basin
A strategic acreage position in a world class hydrocarbon basin o Leading acreage holder in the North Falkland Basin o Material (>40%) working interest in all key licences o Discovered oil resources of 517 mmbbls (2C) and 900 mmbbls (3C) o Sea Lion field fully appraised through extensive E&A campaig
Slide 6: Sea Lion – material resource, fully appraised
Sea Lion – material resource, fully appraised o Medium water depth (350 - 450 metres) o Sea Lion discovery well drilled in 2010 o Sea Lion appraisal and discovery of satellite fields in 2010 / 2011 through extensive exploration / appraisal campaign • 4,500 km2 3D seismic covering entire licence area
Slide 7: Sea Lion – increasing resource base as project matures
Sea Lion – increasing resource base as project matures se 5% i ncrea 3 i n crease 115% o Independently certified 2C resources have more than doubled since discovery as field appraised and better understood o Rockhopper net 2C resources of approximately 260 mmbbl 7
Slide 8: Sea Lion in the global context
Sea Lion in the global context Sits within the top 5 largest offshore oil discoveries made this decade* * Source Wood Mac, company disclosures. Jan 2010 – Dec 2016. Excluding ultra deep water. Logo represents operator at time of discovery 8
Slide 9: Material low-risk upside remaining within the basin
Material low-risk upside remaining within the basin Capture 3C resource Low risk exploration upside Further exploration and within Sea Lion located close to Sea Lion appraisal of Isobel-Elaine 9
Slide 10: Sea Lion development planning – Phase 1 (Rockhopper 40%)
Sea Lion development planning – Phase 1 (Rockhopper 40%) Phased development approach adopted o Phase 1 to develop 220 million barrels in the north of the field via leased FPSO o Initial target production 80,000 bopd gross (32,000 bopd net to Rockhopper) FEED process for Phase 1 substantially Source:
Slide 11: Greater Mediterranean
Greater Mediterranean 11
Slide 12: Growing our asset base in Greater Mediterranean
Growing our asset base in Greater Mediterranean …Delivering a step-change increase in production and revenue Notes: • Economic production includes production from the effective date (being 1 January 2016) of the acquisition of assets in Egypt • Revenue includes impact of Egypt acquisition from mid A
Slide 13: Abu Sennan – Western Desert, Egypt (Rockhopper 22%)
Abu Sennan – Western Desert, Egypt (Rockhopper 22%) o Operated by Kuwait Energy o Six fields producing 720 boepd net (~90% oil) during H1 2017 o Active drilling program with historic success rate of ~75% o Quality crude with small discount to Brent o Low cash operating costs <$8/bbl (H1 2017) o Expl
Slide 14: Italian portfolio - production with exploration upside
Italian portfolio - production with exploration upside Guendalina (RKH 20%) Monte Grosso (RKH 23%) o Operated by Eni o Operatorship recently transferred to Eni o H1 2017 net production: 320 boepd o Largest undrilled prospect onshore Western Europe o Attractive gas price (~$5.5/mcf) o ~250 mmbbl pros
Slide 15: Financial update
Financial update 15
Slide 16: Protecting financial strength to enable growth
Protecting financial strength to enable growth o Strong financial performance in H1 2017 with continued focus on cost management • Revenue $5.1 million – up 74% vs H1 2016 • Low cost production: unit cash operating costs $8.7/boe – down 44% vs H1 2016 • Corporate costs funded by Greater Mediterranea
Slide 17: Focus on cost management
Focus on cost management Continued focus on reducing corporate costs Recurring* net G&A (US$m) o Net recurring G&A in H1 2017: $2.5 million 12 o Full year forecast estimated at $5.5 - 6.0 million (45%) o Equivalent to ~$500k per month 10 o Approximate 45% reduction since 2014 8 Savings achieved thro
Slide 18: 2017 capital expenditure
2017 capital expenditure H1 2017 capex spend Capital expenditure (US$m) o $17 million spend in H1, full-year guidance of $28 million maintained 35 30 Cash outflow for 2016 25 o Primarily North Falkland Basin exploration campaign close out costs 20 Falklands 15 o Pre-sanction activities on Sea Lion i
Slide 19: Solid platform for sustainable growth
Solid platform for sustainable growth FINANCIAL HEALTH AND FLEXIBILITY OPPORTUNITY FOR o Strong cash balance MATERIAL VALUE and generation CREATION o Disciplined focus on TRACK RECORD OF o World class discovery efficiency STEADY GROWTH with robust economics o Sea Lion funding o Short-cycle productio
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