Rockhopper Exploration Plc · LSE:RKH
Rockhopper Exploration — Investor Presentation (September 2019)
21 slides from Rockhopper Exploration's investor presentation, Sep 18, 2019
Slide 1: Building a well-funded, full-cycle, exploration-led E&P company
Building a well-funded, full-cycle, exploration-led E&P company Corporate Presentation 18 September 2019
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: Near term value creation
Near term value creation → Basin potential ~1 bn barrels recoverable oil → Phase 1 fully appraised 250 mmbbls (gross) development - peak production World class Sea Lion project ~80,000 bopd → Substantially de-risked from a technical, cost and schedule perspective → Key service and supply contracts i
Slide 4: North Falkland Basin
6 ROCKHOPPER EXPLORATION PLC North Falkland Basin NORTH FALKLANDS BASIN
Slide 5: A strategic acreage position in a world class hydrocarbon basin
A strategic acreage position in a world class hydrocarbon basin Leading acreage holder in the North Falkland Basin with >40% working interest in all key licences → Benign met-ocean conditions in c.450 meters water depth → Extensively appraised → Excellent quality 3D seismic across entire field → 8 w
Slide 6: Potential for multiple phases of development
Potential for multiple phases of development Phase 1 → Commercialising 250 mmbbls gross Phase 2 → Straddles PL032 and PL004 → ~80 kbopd gross plateau production → Commercialising >270 mmbbls gross RKH RKH → Project sanction: within next 12 months → Focused on southern part of Sea Lion 40% (subject t
Slide 7: Sea Lion Phase 1 development outline
Sea Lion Phase 1 development outline Proven development concept → Conventional new-build FPSO / subsea development → Extensive project development and engineering complete Up to 29 wells (20 oil producers) 250 million barrels recoverable resource $1.8bn capex to first oil 7
Slide 8: Strong contractor team
Strong contractor team Tier 1 supply chain in place Letters of Intent with key contractors → Experienced in comparable projects → Leveraging the operator’s recent Catcher experience Drilling FPSO Rig SURF/SPS → Supply chain and logistics proven after multiple drilling campaigns → Alignment via provi
Slide 9: Supportive government and regulatory framework
Supportive government and regulatory framework Regulatory interface well advanced → Regulatory reviews and approval processes progressing → Comprehensive assurance process → Field Development Plan substantially agreed → Extensive environment work completed → Formal approval of EIS expected at sancti
Slide 10: Robust economics and financing plan
Robust economics and financing plan Robust project economics Financing plan advanced → Project optimised through the FEED process → PIM and lender due diligence reports submitted to senior → Substantial value lenders including Export Credit Agencies in July 2019 → Rapid pay-back with high capital ef
Slide 11: Material low-risk upside, proximal to current field development
Material low-risk upside, proximal to current field development Gross Best Gross Best STOIIP GCoS Area Prospect Prospective (MMstb) (%) Resource (MMstb) → Significant Chatham N 107.9 27.9 17 inventory of low Chatham Chatham E 44.4 11.5 29 risk prospects Chatham S 27.1 7.0 24 → Independently B15 W 35
Slide 12: Potential Phase 2 development at Isobel-Elaine
Potential Phase 3 development at Isobel-Elaine Contingent & Prospective Resources in the Isobel/Elaine Area 700 600 Recoverable Resources (MMbbl) Prospective 500 400 300 Contingent 200 100 → Two wells drilled on Isobel-Elaine complex in 2015/16 encountering oil → Isobel 2 located 4km downdip from Is
Slide 13: Greater Mediterranean
KS ROCKHOPPER EXPLORATION PLC Greater Mediterranean
Slide 14: Greater Mediterranean delivers stable production and cash flow
Greater Mediterranean …delivers stable production and cash flow Production (kboepd) 2015 0.3 2016 0.8 2017 1.2 2018 1.1 H1 2019 1.2 Revenue (US$m) 2015 4.0 2016 7.4 2017 10.4 2018 10.6 H1 2019 4.8 14
Slide 15: Abu Sennan – Western Desert, Egypt
Abu Sennan – Western Desert, Egypt (Rockhopper 22%) → Operated by Kuwait Energy → Seven fields currently producing ~1,000 boepd net → Active drilling program with historic success rate of ~75% → Good quality crude with small (3 - 4%) discount to Brent → Low cash operating costs (~$6/bbl in H1 2019)
Slide 16: Italian portfolio - production with exploration upside
Italian portfolio - production with exploration upside Guendalina (RKH 20%) Civita (RKH 100%) → Operated by Eni → Operated by Rockhopper → Net production: 140 boepd (last 12 months) → Net production: 120 boepd (last 12 months) → Attractive gas price ($6.2/mcf in H1 2019) → Efforts continue to manage
Slide 17: Italian portfolio - production with exploration upside
Italian portfolio - production with exploration upside Ombrina Mare arbitration Monte Grosso (RKH 23%) → International arbitration against Republic of Italy → Operatorship transferred to Eni under ICSID (World Bank) for breaches of ECT → Largest undrilled prospect onshore Western Europe → Seeking si
Slide 18: Financial update
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Slide 19: Protecting financial strength to enable growth
Protecting financial strength to enable growth → Strong financial performance in H1 2019 with continued focus Recurring G&A costs on cost management (US$m) → Revenue $4.8 million; cash operating costs $2.2 million ~50% reduction → Low cost production: unit cash operating costs $10.3 per boe since 20
Slide 20: Outlook
KS ROCKHOPPER EXPLORATION PLC Outlook 20
Slide 21: Catalysts for the next 12 months
Catalysts for the next 12 months → Move into next phase of detailed lender due diligence and documentation in Q4 2019 Progress Sea Lion towards sanction → Securing funding ahead of FID → Vendor loan notes – documentation well advanced → International arbitration under ICSID (World Bank) → Seeking si
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