Rockhopper expects to generate cash flow in excess of two billion dollars

AIM-listed oil and gas exploration company Rockhopper Exploration has published its half-yearly results, revealing strong prospects for cash generation in the years ahead.

AIM-listed oil and gas exploration company Rockhopper Exploration has published its half-yearly results, revealing strong prospects for cash generation in the years ahead.

The company, which is based in the UK and has interests in the Falklands Islands, was established in 2004 with a strategy to invest in and undertake an offshore oil exploration programme.

During the six month period, the company said it had reached a farm out agreement for cash of $231m, net development carry of $722m and net exploration carry of $48m.

Since September 30th, the company added that it had completed its farm-out agreement, the extension of licenses and transfer of operatorship.

In the Chairman's statement, Dr Pierre Jungels commented: "The Sea Lion field is now fully financed. This means that for its 2C case, Rockhopper has approximately 142 million barrels of financed oil that from late 2017 should begin generating cash flow with an estimated value to Rockhopper in excess of $2bn at a 10% discount factor."

The first six months to September 30th saw the company announce the farm out and complete the demobilisation of the drilling campaign. The farm out subsequently completed on October 18th meaning that Rockhopper is fully financed for both the development of Se Lion and for a three well exploration programme targeted for 2014.

The company commented further that it was in its strongest position to date.

Chief Executive Officer Samuel Moody , said: "With the farm out now completed, the company is in the strongest position in history. The development is fully funded and we have brought in a proven and highly experienced operator and we have a strong balance sheet all against a very different equity market and financial backdrop.

"There is a huge amount of work to be done in order that all our knowledge and experience of th North Falkland Basin gained over the last eight years has passed on to Premier so that we can more as swiftly as possible towards a final investment decision and then first oil."

MF

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Here’s why you really should own at least some bitcoin
Bitcoin

Here’s why you really should own at least some bitcoin

While bitcoin is having a quiet year – at least in relative terms – its potential to become the default cash system for the internet is undiminished, …
16 Sep 2020
Will a second wave of Covid lead to another stockmarket crash?
Stockmarkets

Will a second wave of Covid lead to another stockmarket crash?

Can we expect to see another lockdown like in March, and what will that mean for your money? John Stepek explains.
18 Sep 2020
Central banks want politicians to take charge – but what will they do?
US Economy

Central banks want politicians to take charge – but what will they do?

The US Federal Reserve has come to the end of the road in terms of what it can do to accelerate any recovery, says John Stepek. It's over to the polit…
17 Sep 2020