Rockhopper Exploration Plc · LSE:RKH
Rockhopper Exploration — Investor Presentation (April 2019)
19 slides from Rockhopper Exploration's investor presentation, April 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 April 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: Value creation through the cycle
Value creation through the cycle → Project momentum building - ramping up activity and development team → Front End Engineering and Design completed in Q1 2019 World class Sea Lion project → Opportunity to lock-in development costs at attractive point in the cycle → Regulatory interface well advance
Slide 4: North Falkland Basin
North Falkland Basin Corporate Presentation | April 2019 4
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 circa 400 metres water depth → Extensively appraised → Excellent quality 3D seismic across entire field →
Slide 6: Sea Lion Phase 1 development outline
Sea Lion Phase 1 development outline Proven development concept → Technically straightforward FPSO development → Extensive project development and engineering complete 23 wells (16 oil producers) $1.5bn capex to first oil LOF costs < $35/bbl (capex, opex and lease) → Supply chain and logistics prove
Slide 7: Potential for multiple phases of development
Potential for multiple phases of development Phase 1 → Commercialising 220 mmbbls gross Phase 2 → Straddles PL032 and PL004 → ~ 80,000 bopd gross production → Commercialising ~ 300 mmbbls gross RKH RKH → Project sanction: within next 12 months → Focused on southern part of Sea Lion 40% (subject to s
Slide 8: Sea Lion – costs, contractor team and financing
Sea Lion – costs, contractor team and financing Strong contractor team LOIs with key contractors → Experienced in comparable projects → Opportunity to lock in supply chain at competitive rates Drilling FPSO Rig SURF/SPS → Alignment via provision of vendor financing Material costs savings achieved th
Slide 9: Material low-risk upside, proximal to current field development
Material low-risk upside, proximal to current field development Gross Best Gross Best STOIIP GCoS Area Prospect Prospective (MMstb) (%) Resource (MMstb) → Significant Chatham N 107.9 27.9 17 inventory of low Chatham Chatham E 44.4 11.5 29 risk prospects Chatham S 27.1 7.0 24 → Independently B15 W 35
Slide 10: Potential Phase development at Isobel-Elaine
Potential Phase 3 development at Isobel-Elaine Contingent & Prospective Resources in the Isobel/Elaine Area 700 600 Recoverable Resources (MMbbl) Prospective 500 400 300 Contingent 200 100 → Two wells drilled on Isobel-Elaine complex in 2015/16 encountering oil → Isobel 2 located 4km downdip from Is
Slide 11: Greater Mediterranean
Greater Mediterranean Corporate Presentation | April 2019 11
Slide 12: Greater Mediterranean delivers stable production and cash flow
Greater Mediterranean …Delivers stable production and cash flow to cover operating and corporate costs Production (kboepd) 2014 0.3 2015 0.3 2016 0.8 2017 1.2 2018 1.1 Revenue (US$m) 2014 1.9 2015 4.0 2016 7.4 2017 10.4 2018 10.6 Corporate Presentation | April 2019 12
Slide 13: Abu Sennan – Western Desert, Egypt (Rockhopper 22%)
Abu Sennan – Western Desert, Egypt (Rockhopper 22%) → Operated by Kuwait Energy → Seven fields currently producing 925 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 2018) → Mult
Slide 14: Italian portfolio - production with exploration upside
Italian portfolio - production with exploration upside Guendalina (RKH 20%) Civita (RKH 100%) → Operated by Eni → Operated by Rockhopper → 2018 net production: 180 boepd → H2 2018 net production: 130 boepd → Attractive gas price (~$8.2/mcf in 2018) → Pipeline rupture incident February 2018 → Efforts
Slide 15: Italian portfolio - production with exploration upside
Italian portfolio - production with exploration upside Ombrina Mare arbitration Monte Grosso (RKH 23%) → International arbitration under ICSID (World Bank) → Operatorship transferred to Eni → Seeking significant monetary damages → Largest undrilled prospect onshore Western Europe → Hearing took plac
Slide 16: Financial update
Financial update Corporate Presentation | April 2019 16
Slide 17: Protecting financial strength to enable growth
Protecting financial strength to enable growth → Strong financial performance in 2018 with continued focus Recurring G&A costs on cost management (US$m) → Revenue $10.6 million; cash from operations $5.4 million ~50% reduction → Low cost production: unit cash operating costs $11.7 per boe since 2014
Slide 18: Outlook
Outlook Corporate Presentation | April 2019 18
Slide 19: Focus for the next 12 months
Focus for the next 12 months → Securing funding ahead of FID Progress Sea Lion towards sanction → Senior debt – formal PIM submission Q2 2019 → Vendor loan notes – documentation well advanced → Active four well drilling program agreed for 2019 Egypt drilling campaign → Two development, one explorati
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