Rockhopper Exploration Plc · LSE:RKH
Rockhopper Exploration — Investor Presentation (September 2018)
18 slides from Rockhopper Exploration's investor presentation, Sep 19, 2018
Slide 1: Corporate Presentation
Corporate Presentation Building a well-funded, full-cycle, exploration-led E&P company 19 September 2018
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: Value creation through the cycle
Value creation through the cycle o Project momentum building - ramping up activity and development team o Letters of Intent in place with all key contractors; further FEED awards World class Sea Lion o Opportunity to lock-in development costs at attractive point in the cycle project o Regulatory int
Slide 4: North Falkland Basin
NORTH FALKLANDS BASIN ey) SEA LION EF SOUTH & EAST FALKLAND BASIN.
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 with >40% working interest in all key licences o Benign met-ocean conditions in circa 400 metres water depth o Extensively appraised o Excellent quality 3D seismic across entire field
Slide 6: Sea Lion Phase 1 development outline
Sea Lion Phase 1 development outline Proven development concept o Technically straightforward FPSO development o Extensive project development and engineering complete o 23 wells (16 oil producers) o $1.5bn capex to first oil o LOF costs < $35/bbl (capex, opex and lease) o Supply chain and logistics
Slide 7: Potential for multiple phases of development
Potential for multiple phases of development Phase 1 (RKH 40%) o Commercialising 220 mmbbls gross o ~ 80,000 bopd gross production 160 o Target sanction: mid 2019 o Target first oil: ~ 3.5 years after sanction Annual average oil rate (kbopd) 140 Phase 2 (RKH 40 - 64%) o Straddles PL032 and PL004 120
Slide 8: Sea Lion – costs, contractor team and financing
Sea Lion – costs, contractor team and financing Strong contractor team o Experienced in comparable projects LOIs with key contractors o Opportunity to lock in supply chain at competitive rates o Alignment via provision of vendor financing Drilling FPSO Rig SURF/SPS Material costs savings achieved th
Slide 9: Material low-risk upside, proximal to current field development
Material low-risk upside, proximal to current field development Gross Best Significant Gross Best Area Prospective GCoS Prospect STOIIP Resource (%) inventory of low risk (MMstb) prospects (MMstb) Chatham N 107.9 27.9 17 Chatham Independently Chatham E 44.4 11.5 29 audited Chatham S 27.1 7.0 24 B15
Slide 10: Potential Phase 3 development at Isobel-Elaine
Potential Phase 3 development at Isobel-Elaine • Two wells drilled on Isobel-Elaine complex in 2015/16 encountering oil • Isobel 2 located 4km downdip from Isobel Deep discovery - established oil column in excess of 480m • Appraisal drilling necessary to un-lock additional resource and characterise
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 12
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 860 boepd net (H1 ‘18) o Active drilling program with historic success rate of ~70% o Good quality crude with small (3 - 4%) discount to Brent o Low cash operating costs ($6/bbl in H1 ‘18) o Explor
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 transferred to Eni o H1 2018 net production: 230 boepd o Largest undrilled prospect onshore Western Europe o Attractive gas price (~$7.5/mcf) o ~250 mmbbl prospect; 23%
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 2018 with continued focus on cost management • Revenue $5.2 million; cash from operations $4.9 million • Low cost production: unit cash operating costs $11 per boe • Corporate costs funded by Greater Mediterranean pr
Slide 17: Outlook
Outlook 17
Slide 18: Focus for the next 12 months
Focus for the next 12 months Progress Sea Lion towards formal Egypt drilling campaign sanction o Securing funding ahead of FID o AJ-6 currently being completed for o Vendor loan notes testing and production o Senior debt - export credit and project o AJ-10 development well (Q3 2018) finance o ASS-1X
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