North Falkland Basin Exploration Update

RNS Number : 1694A

Rockhopper Exploration plc

25 September 2015

 

25 September 2015

Rockhopper Exploration plc

("Rockhopper" or the "Company")

North Falkland Basin Exploration Update

Rockhopper Exploration plc (AIM: RKH), the oil and gas exploration and production company with interests in the North Falkland Basin and the Greater Mediterranean region, is pleased to announce that agreement has been reached to drill a further well on the Isobel/Elaine complex.

The re-drill well will target the Isobel Deep reservoir which was oil bearing in well 14/20-1, but could not be logged or sampled for mechanical reasons.  This new well will be drilled a suitable distance (approximately 4km) from the original well bore and is also expected to encounter additional reservoir targets in the Elaine South and Isobel Shallow Fans. 

This well will replace the Jayne East well in the current drilling campaign (subject to the final regulatory approvals).

As part of the agreement to drill a further well on the Isobel/Elaine complex, Rockhopper has reached agreement with Falkland Oil & Gas Limited ("FOGL") on the terms of compensation for not drilling the Jayne East well. Under the agreement, Rockhopper will pay FOGL $4.0 million ($2.0 million immediately with the balance expected to be paid later in 2016). As per the original farm out agreement, Rockhopper and Premier Oil will carry FOGL on its 40% equity share of the re-drill well costs.

The rig, which is currently drilling to the south of the Falkland Islands, is expected to return to the North Falkland Basin in mid to late October 2015.

Sam Moody, CEO of Rockhopper, commented:

"The Isobel Deep well drilled in May significantly de-risked the Isobel/Elaine fan complex which represents a new play in a previously underexplored part of the North Falkland Basin. We are delighted that agreement has been reached to drill another well on the Isobel/Elaine complex."

For further information, please contact:  

Rockhopper Exploration plc

Tel: (via Vigo Communications) - 020 7016 9571

Sam Moody - Chief Executive

Fiona MacAulay - Chief Operating Officer

Stewart MacDonald - Chief Financial Officer

Canaccord Genuity Limited (NOMAD and Joint Broker)

Tel: [phone]

Henry Fitzgerald-O'Connor

Liberum Capital (Joint Broker)

Tel: [phone]

Clayton Bush

Vigo Communications

Tel: [phone]

Peter Reilly

Patrick d'Ancona

 

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