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 2021.

Sea Lion and the Falkland Islands

• Definitive legally binding documents announced and, post-period, signed with Navitas Petroleum LP ("Navitas") and Harbour Energy plc ("Harbour")
• Navitas to acquire 65% interest in, and become Operator of, Rockhopper's North Falkland Basin licences
• Harbour to exit the Falklands
• Navitas to fund all of Rockhopper's Phase 1 Sea Lion project costs* pre FID via 8% loan
• Navitas to fund two-thirds of Rockhopper's Sea Lion Phase 1 project costs* from FID to one year after first oil, or project completion if earlier, via interest free loan (for any costs not met by third party debt financing)
• Loans repaid from 85% of Rockhopper's working interest share of Sea Lion Phase1 project cash flows

(* This excludes licence costs, taxes, abandonment and decommissioning costs (including the Temporary Dock Facility) and contract termination costs incurred in connection with Harbour withdrawing)

Corporate and Financial

• Administrative expenses at lowest level since pre-Sea Lion discovery - G&A US$3.3 million
• Cash of US$4.8 million as at 31 December 2021

Outlook

• Ombrina Mare Arbitration proceedings formally closed on 25 April 2022 - seeking significant monetary damages
• Tribunal has 120 days after closing to issue its Award, extendable by 60 days
• Satisfaction of various conditions precedent to the Navitas and Harbour transaction required for deal completion, including various regulatory and other approvals required from the Falkland Islands Government
• Navitas to assume operatorship of Sea Lion and strengthen operating capability
• Lower upfront cost Sea Lion development to be worked up and financing sought
• FID targeted 2023/24

Keith Lough, Chairman of Rockhopper, commented:
"We are delighted to have signed legally binding documentation allowing Harbour a clean exit and bringing Navitas into the Falklands. At current oil prices and with an increased focus on security of supply, we believe a responsibly developed Sea Lion presents an exceptional chance to create very significant value for all stakeholders. 

We look forward to working closely with Navitas on a lower cost development and associated financing plan for the project. With the Ombrina Mare arbitration result expected later in the year, we hope and believe that 2022 will be the start of a bright new chapter for Rockhopper".

KeyFacts Energy: Rockhopper Falkland Islands country profile

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