Rockhopper Exploration, the oil and gas exploration and production company with key interests in the North Falkland Basin, today announced its audited results for the year ended 31 December 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-off non-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

Keith Lough, Chairman of Rockhopper, commented:
"The Company will continue to work closely with all stakeholders to maximise the chance of securing the Navitas farm out and project sanction of Sea Lion. The Board believes that the opportunity to invest in a world-scale fully appraised and engineered project with material additional upside at this point in the cycle presents a compelling opportunity, and one which would lead us towards unlocking the value within the project long-awaited by all stakeholders."

KeyFacts Energy: Rockhopper Falkland Islands country profile