Rockhopper Exploration Plc · LSE:RKH

Rockhopper Exploration — Investor Day (March 2015)

34 slides from Rockhopper Exploration's investor day presentation, March 2015

  1. Slide 1: Rockhopper Exploration - NFB Exploration Capital Markets Day March 2015

    ROCKHOPPER EXPLORATION North Falkland Basin (NFB) Explora5on Capital Markets Day March 2015 1

  2. Slide 2: Important Notice

    Important No7ce 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 a

  3. Slide 3: Rockhopper Overview

    GREATER MEDITERANEAN OVERVIEW Rockhopper Overview 3

  4. Slide 4: Rockhopper Corporate Overview

    Rockhopper Corporate Overview § Our strategy is to create value through building a well-­‐funded, full-­‐cycle, explora5on led E&P company § We aim to do this by: § Maintaining balance sheet strength and flexibility § Building a balanced porQolio of assets in NORTH FALKLANDS BASIN our core geogra

  5. Slide 5: Rockhopper Key Metrics

    Rockhopper Key Metrics Reserves 2P 1mmboe Con5ngent Resources 2C 182mmboe Prospec5ve Resources P2 622mmboe Financial data Cash c.$200 million* Debt $0 million Shares in issue 293 million Market cap at 65p $295 million** EV $95 million EV/2P+2C $0.52 boe * as at 31st Dec 2014 ** USD:GBP 1.55 5

  6. Slide 6: Indicative Activity Schedule

    Indica7ve Ac7vity Schedule 6

  7. Slide 7: Sea Lion

    GREATER MEDITERANEAN OVERVIEW Sea Lion 7

  8. Slide 8: Sea Lion pre FID work continues

    Sea Lion pre FID work con7nues $70mm JV pre FID spend 2015 Target FEED award Q2 2015 Target sanc7on H1 2016 14 development wells Low cost phased FPSO solu7on § 8 producers § 5 water injectors $1.8bn to first oil (at Nov 2014) § 1 gas producer / injector c. $11.25 per bbl § 9 pre-­‐drilled Further

  9. Slide 9: 2010-2012 campaign review

    GREATER MEDITERANEAN OVERVIEW 2010-­‐2012 campaign review Rockhopper track record Basin knowledge 9

  10. Slide 10: North Falkland Basin 2010-2012 – campaign results

    North Falkland Basin 2010-­‐2012 – campaign results § Discovered & appraised Sea Lion § Significant oil discovery § Discovered the satellite fields § Casper, Casper South, Beverley § Total gross discovered resources § c 400mmbbls recoverable oil § 1.8Tcf gas § Extensive data collec7on § Full

  11. Slide 11: 2010-11 Rockhopper Operated Campaign

    2010-­‐11 Rockhopper Operated Campaign 10 wells 400mmbbls rec. oil Zero environmental 2 DSTs Opened a new hydrocarbon province 1.8 Tcf gas incidents 2x 3D vessels 11

  12. Slide 12: Subsurface Data and Analysis

    Subsurface Data and Analysis Unique knowledge of Sea Lion sub surface Appraisal Campaign Overview Loca5on § Exploration well 8 km north of 14/10-2, penetrating northern SL30 14/10-3 fan good reservoir section sealed from main hydrocarbon-bearing reservoir to the south § Drilled to test a location

  13. Slide 13: Amended well design, post well 14/10-6

    Amended well design, post well 14/10-­‐6 RKH amended well design – cost & schedule improvement Ini5al Well Design Progressed Well Design 30” x 20” TOC to 30” x 20” TOC to seabed (ROV observed) seabed (ROV observed) 30” x 20” @ 30” x 20” @ shoe @ 522m TVDSS Shoe @ 522m TVDSS 13 3/8” (L80, 68# Dino Va

  14. Slide 14: 2010-2012 – Rockhopper operational performance

    2010-­‐2012 – Rockhopper opera7onal performance • Ave spud to TD 7me post 14/10-­‐6 : 13 days • Total Metres drilled : 26,573m • Total core cut : 455m • Ave materials consumed / well : 865 tons • Average well cost : c.$30M 14

  15. Slide 15: NFB – geological setting

    GREATER MEDITERANEAN OVERVIEW NFB – geological seang 15

  16. Slide 16: Sea Lion Depositional Setting - A reminder

    Sea Lion Depositional Setting - A reminder • North-­‐south trending Atlan7c failed rio filled primarily by Early Cretaceous to Ter7ary sediments • Typical half graben structure with a large (>5,000m) eastern bounding fault • Sea Lion accumula7on posi7oned close to the eastern margin • Lacustrine sour

  17. Slide 17: Sea Lion Fan Complex Depositional Schematic

    SEA LION FAN COMPLEX DEPOSITIONAL SCHEMATIC CHATHAM JAYNE E. ZEBEDEE ISOBEL DEEP Isobel Deep Jayne East Elaine North Elaine South Catriona Chatham Emily/Lydia SL30 SL20 / SL10 Casper Casper South Con7nuous fine Zebedee Grained background Beverley Deposi7on from delta F3 Fans F2 Fans 17

  18. Slide 18: Sea Lion Fan Complex Depositional Schematic

    SEA LION FAN COMPLEX DEPOSITIONAL SCHEMATIC 18

  19. Slide 19: Sea Lion fans and exploration targets

    Sea Lion fans and exploration targets North 14/10-3 14/10-4 14/10-9 14/15-4a Zebedee (proposed) South E1 E3 Beverley SL30 SL20 Casper South Casper B30 SL20 3D1 SL10 Kermit Full stack volume Jackie NW Josiah Hector Zebedee Parker Noggin EEI-70 lithology volume* Jayne 1 * Lithology conditioned from th

  20. Slide 20: 2015 campaign

    GREATER MEDITERANEAN OVERVIEW 2015 campaign 20

  21. Slide 21: 2015 campaign

    2015 campaign 4 wells Low to medium risk Exploration & High impact Appraisal 2015 Pmean Low cost 160mmbbls c. $6mm Net to RKH per well 21

  22. Slide 22: Falklands 2015 Exploration Campaign Start Up

    Falklands GREATER M 2015 Explora7on OCVERVIEW EDITERANEAN ampaign Start Up Pictures from Premier Oil 22

  23. Slide 23: 2015 – Exploration & Appraisal

    2015 – Explora7on & Appraisal Explora5on ✔ ✔ ✔ ✔ Appraisal ✗ ✗ ✔ ✔ 15% 15% 20% 50% Gross Pmean (complex) : Pmean : Pmean : Pmean : prospec7ve resources 510 mmbbls 282 mmbbls 87 mmbbls 127 mmbbls 23

  24. Slide 24: 2015 – Drilling Schedule

    2015 – DRILLING SCHEDULE Gross P90 53 91 21 802 prospec7ve Pmean 282 72 87 127 510 resources P10 741 207 214 1424 Equity 24% 24% 24% 40% 24% Net P90 13 2 5 19 prospec7ve Pmean 68 17 21 51 122 resources P10 178 50 51 342 ZEBEDEE ISOBEL DEEP JAYNE EAST CHATHAM ELAINE/ISOBEL COMPLEX 12% 9% 15% 20% 15%

  25. Slide 25: PL004b Zebedee, RKH 24% WI

    PL004b Zebedee, RKH 24% WI § Near field low risk, high resource explora7on well, 3.4km from 14/15-­‐4 § 7 stacked targets with varying GCoS of 9-­‐52% § Risking lowest for F2 Zebedee fan § Net prospec7ve Pmean resource 68mmbbls (range 13-­‐178) § Extension of proven Sea Lion fan play Spectral De

  26. Slide 26: PL04a Isobel Deep, RKH WI 24%

    PL04a Isobel Deep, RKH WI 24% § High impact moderate risk (GCoS 20%) explora7on well with poten7al to open new Isobel / Elaine development area (32km from 14/15-­‐4) § First test of F3 fan system entering basin from the south-­‐east margin as a sequence of offset stacked reservoirs. Fans developed

  27. Slide 27: PL04c Jayne East, RKH 24% WI

    PL04c Jayne East, RKH 24% WI § Test proven reservoirs of Beverley and Casper South on the eastern flank of syncline § Total of 5 reservoirs targeted in loca7on proximal to sediment source § Excellent reservoir quality an7cipated in F2 sands § Two deeper F3 explora7on targets intersected which req

  28. Slide 28: PL032 Chatham, RKH WI 40%

    PL032 Chatham, RKH WI 40% § Well will confirm presence or absence of non-­‐equilibrium gas cap on western flank of Sea Lion § 50% chance of gas cap being absent and oil filled, adding c.65mmbbls to Sea Lion resources § Deeper Chatham explora7on target (GCoS 17%) tes7ng deltaic fed channel/ fan syste

  29. Slide 29: Exploration & Impact on Sea Lion Development Phases

    Explora7on & Impact on Sea Lion Development Phases • Phase 1a development concept is independent of outcome of 2015 explora7on programme • Phase 1b has poten7al upside in PL032 in event that Chatham / gas cap well is successful • Phase 2 development concept will be determined by the materiality of t

  30. Slide 30: NFB Exploration Costs

    GREATER MEDITERANEAN OVERVIEW NFB Explora5on Costs 30

  31. Slide 31: Funding Update

    Funding Update • Cash at 31st December 2014 c.$200 million (unaudited) • NFB well cost es7mated at $50 million gross per well • Total net cost to RKH for all four NFB wells c.$25 million (aoer carries), c $6 million per well • $48 million Explora7on Carry from Premier • 2 well part carry of FOGL • P

  32. Slide 32: Summary

    GREATER MEDITERANEAN OVERVIEW Summary 32

  33. Slide 33: Summary

    Summary Well placed for 2015 and beyond § High impact 4 well campaign in the NFB § 2 explora7on wells, 2 combined appraisal/explora7on § Poten7al to double resources § Total es7mated cost to RKH c.$25 million, c. $6 million per well § RKH fully funded for both explora7on and the Sea Lion develo

  34. Slide 34: Board of Directors

    Board of Directors DR. PIERRE JUNGELS, CBE -­‐ Chairman SAM MOODY -­‐ Chief Execu5ve Officer PhD in Geophysics & Hydraulics from California Co-­‐founder of Rockhopper Explora7on. Previously at Ins7tute of Technology. Previously worked at Shell, AXA Equity & Law Investment Management, St. Paul’s PetroF

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