Rockhopper Exploration plc · LSE:RKH
Rockhopper Exploration — Corporate Update (February 2014)
23 slides from Rockhopper Exploration's corporate update, February 2014
Slide 1: Rockhopper Exploration Corporate Update February 2014
ROCKHOPPER EXPLORATION Corporate update February 2014
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 and Track Record
ROCKHOPPER EXPLORATION CORPORATE SNAPSHOT TRACK RECORD Rockhopper has interests in 6 licences in the 2004 - 2005 North Falkland Basin (NFB). These include 40% of • Rockhopper is established and initially is granted 4 licences. Phase 1 of the Sea Lion oil field development • IPO and admission to
Slide 4: Building a Solid Foundation
ROCKHOPPER EXPLORATION BUILDING A SOLID FOUNDATION In Premier Oil, Rockhopper believes it has a partner with both the financial and technical resources to exploit the Sea Lion oil field and its satellites. As a result of farming out 60% of its interests in 2012, Rockhopper has a very strong bala
Slide 5: Sea Lion Project: Phase 1 Development
SEA LION PROJECT PHASE 1 DEVELOPMENT Following a comprehensive set of studies, a Offtake Floating Storage Tension Leg & Offloading Platform development concept using a Tension Leg Tanker Platform (TLP) with an integral drilling rig has been chosen by Rockhopper and Premier. Concept Selection Highl
Slide 6: Sea Lion Project: Phase 1 Reservoir Management
SEA LION PROJECT PHASE 1 RESERVOIR MANAGEMENT There will be an active waterflood programme, which will involve injecting approximately 5 barrels of water for each barrel of oil recovered over the life of the field. In order to recover an estimated 293 mmbbl over 25 years, a total of 32 developme
Slide 7: Sea Lion Project: Phase 1 Cost Estimates and Schedule to Sanction
SEA LION PROJECT PHASE 1 COST ESTIMATES SCHEDULE TO PROJECT SANCTION Cost estimates are indicative and subject to Award of FEED Contracts in Q2 2014 FEED. They are unescalated in 2013 money. Short listing of EPC bidders in Q4 2014 • Updated cost estimates available Surface Facilities Capex $
Slide 8: Sea Lion Project: Phase 2 Development
SEA LION PROJECT PHASE 2 DEVELOPMENT As currently envisaged, Phase 2 of the development will exploit the southern extent of Sea Lion plus Casper and Casper South. The project is expected to utilise a single subsea manifold tied-back to the TLP in order to produce 80 mmbbl over 20 years. More d
Slide 9: Exploration Upside: FOGL Farm-in Deal Snapshot
EXPLORATION UPSIDE FOGL FARM-IN DEAL SNAPSHOT Rockhopper Exploration, Premier Oil, and Key licence interests (post farm-in) Falkland Oil & Gas (FOGL) aligned their Rockhopper Premier Oil FOGL interests in blocks PL004a, PL004b, and PL004a 24% 36% 40% PL004c on completion of the latter’s PL004b 24%
Slide 10: Exploration Upside: Drilling Plans
EXPLORATION UPSIDE DRILLING PLANS Rockhopper and Premier intend to enter into a rig sharing arrangement and four slots for the joint venture were included in the recent EOI issued by Noble Energy. Tenders for drilling units are currently being evaluated. The Isobel/Elaine and Jayne East prospect
Slide 11: Exploration Upside: Sea Lion Gas Cap / Chatham
EXPLORATION UPSIDE SEA LION GAS CAP / CHATHAM CHATHAM Technical analysis reveals the possibility (estimated at 50% by SL20 Rockhopper) of a of non-equilibrium gas cap on the western flank of Sea Lion. This location will determine its presence or absence. If absent an estimated 65mmbbls of reserv
Slide 12: Exploration Upside: Isobel / Elaine
EXPLORATION UPSIDE ISOBEL / ELAINE Isobel/Elaine is located in PL004a, where Rockhopper’s IRENE working interest will increase from 3% to 24%. The well will EMILY target six stacked exploration objectives (GCoS 13%-18%). ELAINE S ISOBEL This part of the basin is untested and all of the targets a
Slide 13: Exploration Upside: Jayne East
EXPLORATION UPSIDE JAYNE EAST Jayne East is located in PL004c, where Rockhopper’s working interest will increase from 10% to 24%, and the well will have five targets (GCoS 13%–36%). The primary objective is to test the F2 sands on the east flank of the syncline. These include the known Beverley
Slide 14: Exploration Upside: Zebedee
EXPLORATION UPSIDE ZEBEDEE The Zebedee location is in block PL004b and the well will JACKIE NW target 8 stacked exploration objectives (GCoS 9%-52%). These JOSIAH have the potential to contain estimated gross mean unrisked HECTOR STOIIP of approximately 1.2 billion bbl. ZEBEDEE KIKI The primary
Slide 15: Financial Review: Balance Sheet Strength
FINANCIAL REVIEW BALANCE SHEET STRENGTH In the 12 months to 31st March 2013, Rockhopper Balance sheet (at 30/9/13) US$ million received net proceeds of US$216 million from the Net cash 259 farm-out to Premier Oil. This resulted in a year-end Total assets 414 net cash balance of US$298 million. Sha
Slide 16: Financial Review: Creating Distributable Reserves
FINANCIAL REVIEW CREATING DISTRIBUTABLE RESERVES At a General Meeting In June 2013, Rockhopper’s Funding requirements ahead of first oil shareholders voted in favour of a proposal to cancel the Share Premium Account in order to create General & Administrative expenses 2013 – 2019 distributable res
Slide 17: Summary: Growing Long-Term Value
SUMMARY GROWING LONG-TERM VALUE Rockhopper has a strong balance sheet, with net cash of US$259 million at the end of September 2013 and the second tranche of its CGT liability deferred from 2017 until after first oil from Sea Lion. Rockhopper is fully funded for its share of future capital expen
Slide 18: Appendix
APPENDIX 6 ROCKHOPPER EXPLORATION PLC 18
Slide 19: 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 20: Operations: Metocean Conditions
OPERATIONS METOCEAN CONDITIONS 20
Slide 21: 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 22: Farm Out to Premier Oil: Standby Financing
FARM OUT TO PREMIER OIL STANDBY FINANCING Available on all development capex (pre and Worked example(1) post first oil). Capex to first oil US$3,800m Once the field is cash flow positive on a RKH 40% share US$1,520m quarterly basis, the standby funding is repaid Less carry (US$722m) from an enha
Slide 23: Board of Directors
BOARD OF DIRECTORS DR. PIERRE JUNGELS, CBE - Chairman PhD in Geophysics & Hydraulics from California Institute of Technology. Previously worked at Shell, PetroFina, and Enterprise Oil. SAM MOODY – Chief Executive Officer CHRIS WALTON – Senior Independent Director Co-founder of Rockhopper Exploration
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