Slide 1: Rockhopper Exploration: Focused on the Falklands
ROCKHOPPER EXPLORATION Focused on the Falklands Corporate update October 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 and Track Record
ROCKHOPPER EXPLORATION CORPORATE SNAPSHOT TRACK RECORD Rockhopper has interests in 8 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 Rockhopper 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 to Premier Oil in 2012, Rockhopper has a very strong balance sheet and is fully financed fo
Slide 5: Sea Lion Project: Subsurface Models Complete, Optimisation Ongoing
SEA LION PROJECT SUBSURFACE MODELS COMPLETE, OPTIMISATION ONGOING The latest modelling suggests 2C resources Sea Lion & satellites mid-case resources estimates of 337mmbbl in the SLMC if a gas cap is Phase 1 Phase 2 Total Phase 1 share present on the western flank of the field. SLMC 284 53 337 84%
Slide 6: Sea Lion Project: Phased Drilling
SEA LION PROJECT PHASED DRILLING Rockhopper and Premier continue to favour a phased drilling programme starting in the north of the field where 284mmbbl of Sea Lion’s resources are located. The field development plan will be submitted on this basis and initial production rates in excess of 100,0
Slide 7: Sea Lion Project: Examining an Alternative Concept
SEA LION PROJECT EXAMINING AN ALTERNATIVE CONCEPT Premier has confirmed that an FPSO solution for the Sea Lion development is viable and meets its internal metrics. Nonetheless, it is possible that a TLP will improve the economics of the project by: • Reducing drilling and SURF costs. • Improvin
Slide 8: Exploration Upside: Farm-in Deal Snapshot
EXPLORATION UPSIDE FARM-IN DEAL SNAPSHOT Rockhopper Exploration, Premier Oil and Key licence interests (post farm-in) Falkland Oil & Gas (FOGL) have agreed to align Rockhopper Premier Oil FOGL their interests in blocks PL004a, PL004b, and PL004a 24% 36% 40% PL004c on completion of the latter’s pro
Slide 9: Exploration Upside: Drilling Plans
EXPLORATION UPSIDE DRILLING PLANS Rockhopper and Premier intend to enter into a rig sharing arrangement with other Falklands operators. Three slots for the joint venture were included in the recent EOI issued by Noble Energy and it is expected that a drilling unit will arrive in the area in late 2
Slide 10: Exploration Upside: Chatham Well
EXPLORATION CHATHAM WELLUPSIDE DRILL TARGETS 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 es
Slide 11: 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 12: Exploration Upside: Jayne East
EXPLORATION UPSIDE ZEBEDEE WELL DRILL TARGETS 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
Slide 13: Exploration Upside: Zebedee
EXPLORATION UPSIDE ZEBEDEE The Zebedee location is in block PL004b and the well will target 8 stacked exploration objectives (GCoS 9%-52%). These have the potential to contain estimated total mean unrisked STOIIP of approximately 1.2 billion bbl. The primary objective is Zebedee on the west flan
Slide 14: Financial Review: Balance Sheet Strengthened
FINANCIAL REVIEW BALANCE SHEET STRENGTHENED In the year to 31st March 2013, Rockhopper Income statement US$ million recorded a pre-tax profit of US$47 million after an Underlying operating loss (13) exceptional gain of US$59 million. Exceptional gain 59 Pre-tax profit 47 The post-tax loss of US$
Slide 15: Financial Review: Tax Return Submitted
FINANCIAL REVIEW TAX RETURN SUBMITTED In May 2013, a tax return was submitted to the Rockhopper CGT liability estimates* £m Falkland Islands Government Tax Office (FIGTO) that Total 52 recognised a CGT liability related to the farm-out of 1st instalment 24 £52 million. 2nd instalment 28 * Liabilit
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 – 2017 distributable res
Slide 17: Summary: Growing Long-Term Value
SUMMARY GROWING LONG-TERM VALUE Rockhopper has a strong balance sheet with net cash, adjusted for its estimated CGT liability, of US$220 million. Rockhopper is fully funded for its share of future capital expenditure on Sea Lion through the development carry and standby financing provided by Pre
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: 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 23: 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