Rockhopper Exploration Plc · LSE:RKH
Rockhopper Exploration — Corporate Update (July 2013)
22 slides from Rockhopper Exploration's corporate update, July 2013
Slide 1: Rockhopper Exploration Plc Corporate Update July 2013
ROCKHOPPER EXPLORATION PLC CORPORATE UPDATE JULY 2013
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: Corporate Snapshot
ROCKHOPPER EXPLORATION PLC CORPORATE SNAPSHOT Interests in 8 licences in the North Falkland Market data(2) Basin (NFB). Exchange AIM 38% of the Sea Lion oil field and 30% of Ticker RKH adjacent discoveries via a 40% interest in block Price(3) 127p PL032 and a 24% stake in block PL004b. 52 week r
Slide 4: Rockhopper Exploration Track Record
ROCKHOPPER EXPLORATION TRACK RECORD 2004 - 2005 • Rockhopper is established and granted licences PL023, PL024, PL032 and PL033 in the NFB. Farm-in to licences PL03 and PL04. • IPO and admission to AIM raising £15 million. 2006 - 2008 • 850km² 3D seismic survey in licences PL032 and PL033. • Tota
Slide 5: Sea Lion Project Current Status: Development Plan
SEA LION PROJECT CURRENT STATUS Development Plan • FPSO in 450 metres of water with tanker offloading. • Associated gas used as fuel or re-injected. • 22 producers, 13 water injectors and a gas injector, drilled from 3 subsea centres. • Insulated flowlines and risers. • Hydraulic submersible pumps
Slide 6: Sea Lion Project Current Status: Subsurface & Drilling
SEA LION PROJECT CURRENT STATUS Subsurface & Drilling • Detailed static and dynamic modeling underway. • Rig contracting strategy being developed and discussions with drilling contractors underway. • Planning logistics and base requirements for the development drilling campaign. • Evaluating optio
Slide 7: NFB Acreage Position
NFB ACREAGE POSITION Licence Rockhopper interest PL032 40% PL033 40% PL023 40% PL024 40% PL003 3% PL004a 3% PL004b 24% PL004c 10% 7
Slide 8: Exploration Upside: Significant Potential in North Falkland Basin
EXPLORATION UPSIDE SIGNIFICANT POTENTIAL IN NORTH FALKLAND BASIN Rockhopper has a strong understanding of the NFB and retains the sub-surface lead in exploration while working closely with Premier Oil. Both companies’ exploration teams have been incorporating a variety of post-processing seismic
Slide 9: Exploration Upside: Chatham
EXPLORATION UPSIDE CHATHAM The Chatham system comprises an extensive northerly fed channel and terminal fan complex. A well on this prospect would be the first real test of this system. Much of the feature lies beneath the western part of the main Sea Lion complex and is largely located on licen
Slide 10: Exploration Upside: S2
EXPLORATION UPSIDE S2 The S2 prospect is an Early Cretaceous easterly fan that is wholly located on licence PL032, where Rockhopper has a 40% stake. The preferred S2 well location would be c.15 km north of the likely location of the Sea Lion FPSO making a tie-back to that vessel possible. The
Slide 11: Exploration Upside: The Zebedee Location
EXPLORATION UPSIDE THE ZEBEDEE LOCATION The proposed Zebedee well location would intersect a total of six exploration targets and is situated on licence PL04b, where Rockhopper has a 24% stake. It is south of the Sea Lion field and the existing satellite discoveries. The Zebedee reservoir is an
Slide 12: Exploration Upside: The George Location
EXPLORATION UPSIDE THE GEORGE LOCATION The potential George well location is on licence PL04b, where Rockhopper has a 24% stake. The primary objective of a well here would be to appraise the existing Casper South reservoir and the Beverley discoveries beneath the regional gas-oil contact. The
Slide 13: Capital Reconstruction: Creating Distributable Reserves
CAPITAL RECONSTRUCTION CREATING DISTRIBUTABLE RESERVES Cancelling the share premium account Funding requirements ahead of first oil • In June 2013, Rockhopper received authority from its shareholders to cancel the company’s share premium General & Administrative expenses 2013 – 2017 account to cre
Slide 14: Summary: Rockhopper Going Forward
SUMMARY ROCKHOPPER GOING FORWARD Rockhopper is fully funded for its share of capital expenditure on Sea Lion through the US$722 million (net) development carry and standby financing arrangement provided by Premier Oil. Rockhopper has an aligned and experienced operator with significant experienc
Slide 15: Appendix
APPENDIX 6 ROCKHOPPER EXPLORATION PLC 15
Slide 16: Operations: Drilling Efficiency (AGR Data)
OPERATIONS DRILLING EFFICIENCY (AGR DATA) Waiting-on-weather Non-productive time NFB vs. North Sea NFB vs. North Sea All wells average (46 All wells average (46 9.5% 18.5% wells) wells) North Sea average (35 North Sea average (35 10.6% 20.8% wells) wells) Ocean Guardian NFB Ocean Guardian NFB semi-s
Slide 17: Operations: Metocean Conditions
OPERATIONS METOCEAN CONDITIONS 17
Slide 18: Farm Out to Premier Oil: Highlights of the Transaction
FARM OUT TO PREMIER OIL HIGHLIGHTS OF THE TRANSACTION Farm-out to Premier Oil announced in July 2012 Objectives • Attract an experienced and capable operator to develop Sea Lion. • Fully finance the project. • Retain a material stake. Terms of Farm Out • Premier acquired 60% of all Rockhopper’
Slide 19: Farm Out: Standby Financing & Tax Treatment
FARM OUT STANDBY FINANCING & TAX TREATMENT Financing arrangement with Premier Oil Expected tax treatment • Available on all development capex (pre and post first oil). • Branch elections effective from 1 April 2012 mean that this is outside the scope of UK tax. • Once the field is cash flow positive
Slide 20: Resource Inventory
RESOURCE INVENTORY(1,2) Gross Oil (mmbbl) Net Oil (mmbbl) 1C 2C 3C Mean 1C 2C 3C Mean SL10 69.4 108.0 154.2 110.5 SL10 25.3 39.4 56.3 40.3 SL20 133.6 212.4 310.9 218.0 SL20 52.6 83.6 122.3 85.8 Sea Lion 203.0 320.5 465.0 328.5 Sea Lion 77.9 123.0 178.5 126.0 Casper 14.0 21.1 29.4 21.4 Casper 5.4 8.2
Slide 21: Exploration Prospect Inventory – Fan Play Type
EXPLORATION PROSPECT INVENTORY – FAN PLAY TYPE Fan Name Block WI % Gross Unrisked Prospective Resources MMBBLS GCoS % Low Best High SL30 PL032 40 8.5 13.0 18.6 22 Casper South PL032 40 3.8 6.2 9.1 16 Casper South PL004c 10 5.3 8.1 11.3 16 Beverley West PL004b 24 7.7 12.8 19.6 34 Beverley PL004c 10 3
Slide 22: Board of Directors
BOARD OF DIRECTORS DR. PIERRE JUNGELS, CBE - Chairman CHRIS WALTON – Senior Independent Director PhD Geophysics & Hydraulics, California Institute of Finance Director at Easyjet from 1999 to 2005 where Technology. Previously worked at Shell, PetroFina, and he successfully directed its IPO in 2000. E
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