Slide 1: 2016 Annual Results Presentation
2016 Annual Results Presentation Building a well-funded, full-cycle, exploration- led E&P company 11 April 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 enable growth through exploration Maintaining balance sheet strength o Prudent balance sheet man
Slide 4: 2016 corporate highlights
2016 corporate highlights Strategic AVERAGE DAILY ECONOMIC o Consolidated leading North Falkland Basin acreage position through the all-share PRODUCTION (BOEPD) o merger with Falkland Oil & Gas Limited Acquired non-operated assets in Egypt from Beach Energy, increasing economic 1,350 production to 1
Slide 5: Protecting financial strength to enable growth
Protecting financial strength to enable growth o Strong balance sheet with cash at 31 December 2016: $81 million; no debt o Limited outstanding work program commitments o Continued focus on cost management • Corporate costs largely funded by Greater Mediterranean production • Recurring G&A reduced b
Slide 6: Portfolio overview
Portfolio overview 6
Slide 7: Largest acreage holder in the Falklands
Largest acreage holder in the Falklands Growing asset base through acquisitions and exploration: o Consolidated leading NFB acreage position through merger with FOGL o Gained operatorship of licences PL003a, PL003b and PL005 o Undertaken independent audit which confirms Sea Lion Complex gross contin
Slide 8: Sea Lion phase 1 development - <$45/bbl breakeven price
Sea Lion phase 1 development - <$45/bbl breakeven price “Collaborative partnership” FEED substantially complete with robust project economics Subsea FPSO InstallaXon o Life of field costs ~$35/bbl; “breakeven” <$45/bbl o Field opex reduced to $15/bbl o Indicative FPSO cost $10/bbl (life of field) Su
Slide 9: Material discovered resource base
Material discovered resource base … contingent oil resources >300 MMstb, net to Rockhopper Management Resources utilised 25% RF (Best) 35% RF (High) against ERCE audited STOIIP values 9
Slide 10: Significant low risk, near field drill ready prospects
Significant low risk, near field drill ready prospects 1 Gross Prospective Resources (mmstb) – Sea Lion complex 180 160 1 2 3 3 4 140 156 4 141 141 120 3 100 Mid 80 High 2 60 70 40 53 52 46 20 32 14 22 0 Chatham Area Jayne Area Hector Upper & Beverley Oil Rim B' Sands, B15 & Oil Rim Kermit 5 Gross P
Slide 11: Securing multiple development phases
Securing multiple development phases …successful exploration campaign establishes Phase 2 and 3 viability Phase 1 Sea Lion Complex Phase 2 Isobel-‐Elaine Complex Phase 3 Source: Premier Oil 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 Five fields currently producing (~90% oil) o Active drilling programme with historic success rate of >75% o Quality crude with small discount to Brent o Low cash operating costs ~$10/bbl o Recent exploration success at
Slide 14: Italian production assets continue to perform to forecast
Italian production assets continue to perform to forecast Guendalina (RKH 20%) Civita (RKH 100%) o Operated by Eni o Operated by Rockhopper o 2016 production: 410 boepd o 2016 production: 130 boepd o Plant availability through 2016 close to 100% o Gas compression successfully commissioned in late 20
Slide 15: Material exploration upside potential
Material exploration upside potential Monte Grosso (RKH 23%) El Qa’a Plain (RKH 25%) Block 9 (RKH 40%) o Operatorship recently transferred o Operated by Dana Petroleum o Block awarded in 2015 in to Eni partnership with Eni, subject to o 470 sq km 3D and 35 km 2D signature of a PSA o Largest undrille
Slide 16: 2016 financial results
2016 financial results 16
Slide 17: 2016 financial highlights
2016 financial highlights Full year revenue of $7.4m, material increase from $4.0m in 2015 o Reflects increased production following completion of Beach Egypt acquisition in mid August o Realised gas price in Italy ($4.85/mcf); Egyptian oil sold at small discount to Brent Cash operating costs of $4.
Slide 18: 2016 cash movements
2016 cash movements Includes Egypt producYon from mid Cash movements associated with August onwards FOGL and Beach Egypt acquisiYons 160 140 Includes working capital, FX, 17 one-‐off group restructuring & transacYon costs 120 4 7 4 49 14 100 25 7 14 80 Net of ExploraYon Carry 60 110 40 81 20 0 Openi
Slide 19: Focus on cost management
Focus on cost management Continued focus on reducing corporate costs Recurring* net G&A (US$m) o Net recurring G&A in 2016: US$7.4 million o Equivalent to approximately US$600k per month 12 (30%) o Approximate 30% reduction over the last 2 years 10 8 Savings achieved through o UK employees (15 in to
Slide 20: 2017 capital expenditure outlook
2017 capital expenditure outlook US$m Cash outflow for 2016 35 o Primarily North Falkland Basin exploration campaign close out costs 30 Falklands 25 o Pre-sanction activities on Sea Lion including outstanding FEED costs 20 15 Egypt o Two well campaign on Abu Sennan 10 o Largely focused on recently d