Rockhopper shares get boost from progress on Falklands project
Shares in AIM-listed oil and gas explorer Rockhopper received a boost on news that its Falklands project was closer to approval at the end of the year.
Rockhopper has a 40% interest in the Sea Lion field in the North Falkland Basin, with Premier Oil holding the remaining 60%.
The company said work during the second half of 2017 would focus on progressing the commercial, fiscal and financing elements required to secure the $1.5bn of capital expenditure required to achieve first oil.
The joint venture continues to progress financing for the Sea Lion project including through senior debt and subordinated contractor funding streams.
Rockhopper said discussions were progressing with the Falklands Island government (FIG) “on a range of fiscal, environmental and regulatory matters”.
“A new draft field development plan was submitted for discussion with FIG in November 2017 and FIG has recently confirmed it does not anticipate that the planned discussions will uncover any major issues, and that the minor issues under discussion should be satisfactorily resolved in due course,” the company said.
“With the FDP and environmental impact statement substantially (EIS) complete, a 42-day public consultation on the EIS is expected to commence in January 2018. Engagement with FIG continues with a view to obtaining the consents and agreements necessary to sanction the project in 2018.”
Chief executive Sam Moody said Rockhopper had entered into exclusive letters of intent with a number of the key contractors to Sea Lion and were “hopeful of entering more during the first quarter of 2018”.
Rockhopper shares were up 4% to 25.94p at 1511 GMT.