Rockhopper Exploration, the oil and gas company with key interests in the North Falkland Basin ("NFB"), announces its unaudited results for the six months ended 30 June 2024.

Sea Lion and North Falkland Basin

• Rockhopper holds 35% working interest
• Rockhopper benefits from pre and post Final Investment Decision ('FID') loan from the operator Navitas Petroleum Development and Production(1)
• Independent Resource Report commissioned by Navitas(2)
  • Sea Lion initial development targeting 312mmbbls via two drilling campaigns
  • Sea Lion total 2C resource base 791mmbbls
  • Plateau production up to 55 kbbls/d for prolonged period of eight years
  • Life of field costs US$25/bbls
  • NPV 10 of first 312 mmbbls development > US$4bn gross to the JV pre tax post Falkland Islands Government royalty at US$77 Brent
• Environmental Impact Statement ('EIS') public consultation period completed

Ombrina Mare Arbitration Award

• Transaction to monetise the Award completed
• First Tranche payment received - €19m retained by Rockhopper
• Annulment hearing with ICSID convened ad hoc committee completed
• Post hearing submissions completed
• Cost submissions made to Committee (by Rockhopper and Italy)
• No formal timetable for outcome, hopeful a decision is possible by year end 2024

Balance Sheet

• Balance sheet strengthened following completion of Award monetisation
• Period end cash balance US$27.8m
• Cost control maintained

Outlook

• Strong balance sheet
• Work continues on securing all permissions required to launch Sea Lion financing, including EIS and licence extension
• Ombrina Mare annulment, hopeful a decision is possible by year end 2024

Samuel Moody, CEO, commented:
"Rockhopper is in its strongest position for some time. Monetisation of the Award delivers increased financial flexibility and allows the Company to focus on progressing Sea Lion to sanction, which remains our core focus. We also welcome the news, announced on 24th September, of a new general co-operation agreement between the Falklands and Argentina.

"I would like to thank our team for their continued commitment to driving progress at Rockhopper and our shareholders for their continued support at this exciting time for the Group."

(1) Navitas is the legal entity that holds and operates Sea Lion and our other NFB licences. The company's ultimate and controlling parent is Navitas Petroleum LP, a limited partnership established and registered in Israel and listed on the Tel Aviv Stock Exchange.
(2) Rockhopper is not an addressee and has not been party to the production of the 2024 NSAI Independent Report. The 2024 NSAI Independent Report has been produced to PRMS standards. The last independent resource report commissioned directly by Rockhopper was the ERCE 2016 Report which had an estimated 2C value of 517 MMbbls. See RNS dated 22 January 2024.

Oil and gas assets

The Sea Lion development remains central to the Group's plans and the additions in the period of US$9.2 million almost entirely relate to this project. The majority of these costs are covered through a loan from Navitas and are included in other payables. As part of the transaction to bring Navitas onto the licences, Navitas agreed to provide loan funding to the Group to cover the majority of its share of Sea Lion phase one related costs from Transaction completion, in September 2022, up to FID and has interest charged at 8% per annum (the "Pre-FID Loan"). Subject to a positive FID, Navitas will provide a second interest free loan to fund two-thirds of the Group's share of Sea Lion phase one development costs (for any costs not met by third party debt financing).

Certain costs, such as licence costs, are excluded in both instances. Funds drawn under the loans will be repaid from 85% of Rockhopper's working interest share of free cash flow.

KeyFacts Energy: Rockhopper Exploration Italy country profile