Rockhopper Exploration (LSE:RKH) has launched an open offer to existing shareholders that could raise up to approximately US$20 million if fully subscribed.

The proposed capital raising is intended to provide funding for the company’s activities in the North Falkland Basin and its development plans for the Sea Lion field.

Open offer documents issued to shareholders

Rockhopper has published an open offer circular setting out the terms of the proposed issue.

The company has also begun sending the relevant documents, including application forms, to qualifying shareholders who receive materials in hard-copy form.

The final amount raised will depend on shareholder participation in the offer, with maximum proceeds of approximately US$20 million if it is fully subscribed.

Funds targeted at Falklands activities

Rockhopper intends to use the capital raised to support its Falkland Islands-focused operations, including its interests in the North Falkland Basin and plans for the Sea Lion development.

The source material does not provide further details on the potential effect of the open offer on the Sea Lion development timetable.

Rockhopper holds 35% interest in North Falkland Basin licences

Rockhopper Exploration is a UK-based oil and gas exploration and production company focused on the Falkland Islands.

The company holds a 35% interest in licences in the North Falkland Basin, including the Sea Lion field, which Rockhopper discovered in 2010 and where development has been sanctioned.

Rockhopper’s shares are traded on AIM under the ticker RKH.