Rockhopper Exploration Plc · LSE:RKH
Rockhopper Exploration — Corporate Update (April 2022)
19 slides from Rockhopper Exploration's corporate update, April 2022
Slide 1: Rockhopper Exploration Corporate Update
Rockhopper Exploration Corporate Update April 2022
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: Leading acreage position across the Falklands
Leading acreage position across the Falklands Material, fully appraised 500 mmbbls oil discovery in the North Falkland Basin → Discovered and independently audited oil resources in Sea Lion of 517 mmbbls (2C) and 900 mmbbls (3C) → Substantial upside through additional low-risk, near-field exploratio
Slide 4: Navitas – a new and committed partner for Sea Lion
Navitas – a new and committed partner for Sea Lion → Navitas Petroleum LP is a publicly traded company North American focussed E&P partnership (TASE:NVPT.L) → 2022 forecast production >5,000 boepd → Strong track record in equity and debt capital markets → Highly experienced team with track record of
Slide 5: Definitive transaction documentation signed with Navitas and Harbour
Definitive transaction documentation signed with Navitas and Harbour Aligned working interests across entire North Falkland Basin → Harbour to exit its Falkland Island position completely → Navitas to farm-in for 65% working interest and operatorship, subject to conditions and consents → Rockhopper
Slide 6: Key commercial arrangements
Key commercial arrangements Rockhopper and Navitas to jointly develop a technical and financing plan to enable first oil on a lower cost, expedited basis Funding arrangement between farm-in completion and Final Investment Decision (“Pre-FID Loan”) → Navitas to fund 100% of Rockhopper project costs p
Slide 7: Benefits of the proposed transaction
Benefits of the proposed transaction → Greater alignment and simplified commercial arrangements across the joint venture → Rockhopper retains a higher working interest in the Sea Lion project than under the previous Premier-Navitas transaction announced in January 2020 → The proposals continue to ma
Slide 8: North Falkland Basin overview
North Falkland Basin overview Benign met-ocean conditions in c.450 meters water depth Extensively appraised → Excellent quality 3D seismic across entire field → 8 well penetrations, 2 production tests → Extensive suite of high quality well data → Discovered and independently audited oil resources of
Slide 9: Material upside potential
Material upside potential Capture 3C resource Low risk exploration upside located Further exploration and appraisal within Sea Lion close to Sea Lion of Isobel-Elaine 9
Slide 10: Sea Lion Phase 1 development outline
Sea Lion Phase 1 development outline PMO / RKH development plan and economics adopted in 2019 and rewored in 2020* World-scale resource → 1.7bn barrels oil in place → Well understood reservoir → Highly marketable crude Proven development concept → Conventional new-build FPSO / subsea development → E
Slide 11: Potential for multiple phases of development
Potential for multiple phases of development PMO / RKH production profile adopted in 2019* Phase 1 → Commercialising 250 mmbbls gross Phase 2 → Straddles PL032 and PL004 → ~80 kbopd gross plateau production → Commercialising >270 mmbbls gross → Target first oil: 3.5 years after sanction → Focused on
Slide 12: South Falkland Basin
South Falkland Basin South Falkland Basin acreage high-graded post acquisition of FOGL → Highest prospectively acreage retained → Completely covered by high quality 3D seismic Borders & Southern discovered Darwin in April 2012 → Un-risked P50 estimate for wet gas in place is > 3 TCF *, c.35km2 areal
Slide 13: Ombrina Mare arbitration against Republic of Italy
Ombrina Mare arbitration against Republic of Italy Energy Charter Treaty designed to provide a stable platform for energy sector investments - Republic of Italy founding signatory 2008 2009 Mediterranean Oil & Gas plc Application for Production drills and tests Ombrina Mare Concession submitted fiel
Slide 14: Company structure and costs
Company structure and costs Major cost saving already implemented Recurring G&A costs → 2021 H1 G&A down approximately 40% on H1 2020 (US$m) → 2020 G&A down 65% on 2014 levels → Voluntary executive pay cuts implemented 10.8 → Maintained minimum level of internal capability with direct Sea Lion 9.4 k
Slide 15: Summary
Summary → Sea Lion represents a world-scale (500 mmbbl) oil field with material low risk upside → Fully appraised field with well understood reservoir and highly marketable crude → Go forward development planning benefits from US$1bn historic project spend → Partnership with Navitas brings access to
Slide 16: Supporting slides
6 ROCKHOPPER EXPLORATION PLC Supporting slides 16
Slide 17: Sea Lion history
Sea Lion history Rockhopper Operator 2004-2012 → Mulitple seismic campaigns → Sea Lion discovered 2010 (100% RKH) → 8 appraisal wells, 2 well tests 2010-2011 (100% RKH) → RKH FPSO development concept presented 2011 → Farm down to Premier Oil 2012 Premier Oil Operator 2012-2022 → 3 additional wells →
Slide 18: Easy drilling / operating conditions
Easy drilling / operating conditions Time / Depth curves for Rockhopper Operated 2010/2011 drilling campaign 18
Slide 19: Rig Performance – AGR data RKH operated campaign
Rig Performance – AGR data RKH operated campaign Less non productive time & waiting on weather observed that in the Central North Sea 19
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