Rockhopper Exploration (LS:RKH) is seeking to raise up to US$200 million in new equity as it moves to secure funding for the next phase of development at its flagship Sea Lion project in the Falkland Islands.
The company plans to raise approximately US$180 million through a placing of new ordinary shares, alongside an open offer that could generate a further US$20 million. The shares are being offered at 70 pence each, representing a modest discount to the recent 30-day average share price.
The fundraising has received support from major institutional shareholders and is being structured through a non-pre-emptive cashbox placing accompanied by the open offer. While the issuance will increase Rockhopper’s share capital, the additional funding is intended to provide greater financial certainty as Sea Lion advances towards production.
Net proceeds are expected to fund Rockhopper’s share of expenditure on the Sea Lion central development area and the OSX-1 acquisition through to mid-2028. Capital will also support exploration activity and well deepening under NDA Phase 1.
Part of the proceeds will provide coverage for contingent liabilities associated with potential early project failure, while additional funds will be retained as contingency for the company’s wider Falkland Islands activities.
Rockhopper is targeting first oil from Sea Lion in the first quarter of 2028, making the proposed capital raise an important step in maintaining momentum towards that objective.
The financing follows a recent independent NSAI assessment that indicated a significant increase in the net present value associated with Rockhopper’s interest in Sea Lion. The updated valuation provides additional support for the company’s strategy of progressing the field while retaining exposure to further exploration and development upside.
With funding intended to cover key commitments through mid-2028, the proposed equity raise could place Rockhopper in a stronger position to deliver upcoming development milestones and capture potential longer-term value from Sea Lion and its wider North Falkland Basin portfolio.
More about Rockhopper Exploration
Rockhopper Exploration is an oil and gas company focused primarily on the North Falkland Basin, where its principal asset is the Sea Lion oil field and associated central development area.
The company’s strategy centres on progressing Sea Lion towards phased offshore production while maintaining exposure to additional exploration opportunities across its Falkland Islands portfolio.
Through continued development and exploration activity, Rockhopper aims to build long-term value from its resource base while benefiting from the potential production and cash flow generated by Sea Lion.
Leave a Reply