Rockhopper cuts costs in Falklands oil prospect to $35-barrel

Rockhopper assets, Falkland Islands
Rockhopper assets, Falkland Islands

Rockhopper – the exploration company which owns or has a share in almost all oil exploration licences in the Falkland Islands – has announced that it will make a final investment decision on its Sea Lion field in the South Atlantic in 2018.

It has opened talks with UK Export Finance, the UK’s export credit agency, in relation to a proposed $800 million senior debt financing for the Sea Lion project and it is making progress in discussions with potential contractors to the project for the provision of $400 million of financing.

And the Sea Lion Phase 1 estimated capex to first-oil reduced from $1.8 billion to $1.5 billion, with life of field costs down to $35-barrel.

Tender packages for drilling, well services and logistic services have been prepared and issued with proposals received and evaluated

Sam Moody, Chief Executive, said: “Good progress has been made on a range of commercial, fiscal, regulatory and financing matters associated with the Sea Lion project. The primary focus for the remainder of this year will be to further progress funding proposals with the aim of being in a position to sanction the project during 2018.”

Meanwhile, Rockhopper yesterday reported interim revenues of $5.1 million and a loss after tax of $4.1 million in the six months ending 30 June 2017.

8 Sept 2017

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