REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
CONTENTS
STRATEGIC REPORT 1 2020 highlights
2 North Falkland Basin overview
- Sea Lion Phase 1 development overview
4 Market overview
6 Chairman and Chief Executive Officer's review
9 Key Performance Indicators (KPIs)
10 Financial review
- Internal controls and risk management
- Principal risks and uncertainties
- Environmental, social and governance statement
- Directors' Statement under Section 172 (1) of the Companies Act 2006
GOVERNANCE
- Rockhopper Board
- Board of Directors
- Governance report
- Audit & Risk Committee Chairman's report
- Nomination Committee Chairman's report
- Remuneration report
- Statutory information
- Independent auditors' report to the members of Rockhopper Exploration plc
FINANCIAL STATEMENTS
Group financial statements
51 Consolidated income statement
- Consolidated statement of comprehensive income
- Consolidated balance sheet
- Consolidated statement of changes in equity
- Consolidated statement of cash flows
- Notes to the consolidated financial statements
Parent company financial statements 73 Company balance sheet
74 Company statement of changes in equity
75 Notes to the company financial statements
OTHER INFORMATION
- Key licence interests as at 1 May 2021
- Glossary
- Shareholder information
ROCKHOPPER - WHO WE ARE
Rockhopper Exploration plc (AIM: RKH) is an oil and gas exploration and production company with key interests in the North Falkland Basin.
The Company has been operating offshore the Falkland Islands since 2004 and discovered the world-class Sea Lion oil field in 2010.
OUR STRATEGIC AMBITION Create value for all our stakeholders through building a well-funded,full- cycle, exploration-ledE&P company.
Coverphoto:GStrange
Rockhopper Exploration plc
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
2020 HIGHLIGHTS
Sea Lion
- Detailed transaction terms agreed with Navitas Petroleum LP to farm-in for a 30% interest in the Sea Lion project
- Recently completed merger of Premier Oil plc with Chrysaor to create Harbour Energy plc, resulting in a materially larger and financially stronger operator of the Sea Lion project
- Extension of the Company's North Falkland Basin Petroleum Licences, including the Sea Lion Discovery Area, to 1 November 2022
Corporate and financial
-
Ombrina Mare arbitration Tribunal confirms "deliberations
and the drafting process have both advanced very considerably" - Disposal of Rockhopper Egypt Pty Limited to United Oil & Gas plc completed in February 2020
- Subsequent sale of the Group's entire shareholding in United Oil & Gas plc in August 2020 raised proceeds of US$4.0 million
- Initiatives implemented to further materially reduce corporate costs
- US$222.6 million one-offnon-cash impairment, based on a decision, in line with the Sea Lion operator, to write off the historic exploration costs associated with the resources which will not be developed as part of the Sea Lion Phase 1 project
- Cash resources of US$11.7 million as at 31 December 2020
Outlook
- Targeting completion of the Navitas farm-in
- Outcome in relation to Ombrina Mare arbitration expected in July 2021 - seeking significant monetary damages
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STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
NORTH FALKLAND BASIN OVERVIEW
Sea Lion Phase 1
(PL032)
>250 mmbbls gross*
>75 mmbbls net to Rockhopper†
Sea Lion Phase 2
(PL032/PL004)
>280 mmbbls gross*
>84 mmbbls net to Rockhopper†
Phase 3 Isobel-Elaine
(PL004)
>Isobel-Elaine complex significantly de-risked during 2015/16 exploration campaign
Acreage position†
Rockhopper | Premier | Navitas | Operator | |
PL032 | 30% | 40% | 30% | Premier |
PL003a | 95.5% | 4.5% | - | Rockhopper |
PL003b | 60.5% | 4.5% | - | Rockhopper |
PL004a‡ | 64% | 36% | - | Premier |
PL004b | 30% | 40% | 30% | Premier |
PL004c | 30% | 40% | 30% | Premier |
PL005 | 100% | - | - | Rockhopper |
* Operator estimate.
- Post farm-out to Navitas.
PL01 | PL032 | PL033 |
50°S | PHASE 1 | |
F A L KLAN D | ||
I S L A N D S | SEA LION | |
STANLEY | ||
100 Kms | ||
60°W |
CASPER
PL03b | CASPER | PL04a |
SOUTH WEST |
PL04b | ZEBEDEE |
NINKY SOUTH | PL04c PHASE 2 |
- Under farm-out additional option to further align PL004a acreage (30%/40%/30%).
PL03a
LIZ
ISOBEL
EMILY | ISOBEL DEEP |
PL05
PHASE 3
Prospective | |
Discovered | 5 Kms |
2 | Rockhopper Exploration plc |
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
SEA LION PHASE 1 DEVELOPMENT OVERVIEW
Headline facts and figures
250mmbbls ~80,000bopd US$42/bbl
2C resources in Phase 1 | Gross annual production at plateau | Break even price* |
*Gross project NPV10 equals US$ nil
US$1.8bn US$1.8bn US$4.2bn
Gross CAPEX to first oil | Gross project NPV10 assuming | Life of field undiscounted free cash flow |
US$65/bbl | assuming US$65/bbl |
World scale resource | Proven development concept | Regulatory interface | World class contractor team |
> 1.7 billion barrels oil in place | > Technically straightforward | well-advanced | > Experienced in comparable |
> Well understood reservoir | FPSO development | > EIS and FDP substantially | projects |
> Highly marketable crude. | > Extensive project development | agreed; final approval at | > Opportunity to lock in supply |
and engineering complete | sanction | chain at competitive rates | |
> Supply chain and logistics | > Alignment with FIG on key | > Alignment via provision of | |
proven through multiple | fiscal, commercial and | vendor financing. | |
drilling campaigns. | regulatory items. |
Proven development concept
Projected production profile
Average annual daily oil rate (kbopd)
160 | Phase 1 | |||
140 | ||||
Phase 2 | ||||
120 | ||||
100 | ||||
80 | ||||
60 | ||||
40 | ||||
20 | ||||
0 | 5 | 10 | 15 | 20 |
Years from first production
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