Rockhopper Exploration (LSE:RKH) reported progress on the Sea Lion oil project in the Falkland Islands during the first half, including funding and sanctioning of the first phase of the Northern Development Area.
The company said the first Northern Development Area phase is targeting initial production in early 2028 using the upgraded Aoka Mizu floating production, storage and offloading vessel. Development drilling is scheduled to begin in 2027.
Further phases of the Northern Development Area are planned, while the Falkland Islands Government has extended the relevant production licences.
Navitas Acquires Second FPSO
Sea Lion operator Navitas has acquired a second FPSO, OSX-1, for planned development of the Central Development Area.
According to Rockhopper, the additional vessel is intended to accelerate subsequent development phases. The company said combined production from the development could reach approximately 180,000 barrels per day as additional phases are brought forward.
Rockhopper holds a 35% interest in licences in the North Falkland Basin, where Sea Lion is being developed through a phased programme.
Independent Report Updates Sea Lion Reserves and Resources
Rockhopper also reported an updated independent reserves and resources assessment from NSAI, which showed increases in estimated 2P reserves and 2C contingent resources.
The company said the updated estimates, together with plans for further development phases, have increased its assessment of the project’s net present value.
The Sea Lion field was discovered in 2010 and remains Rockhopper’s principal asset.
US$200 Million Capital Raise Supports Development Programme
Rockhopper reported a US$200 million capital raise, with the proceeds intended to support its share of Northern Development Area expenditure, FPSO-related costs and further exploration activity in the North Falkland Basin.
The company said the financing is expected to fund these activities through the middle of 2028.
During the period, Rockhopper also reported changes to its board and progress towards the disposal of an asset in Italy.
Rockhopper’s Falkland Islands Portfolio
Rockhopper Exploration is a U.K.-based oil and gas exploration and production company focused primarily on the North Falkland Basin.
The company holds a 35% interest in its Falkland Islands licences and is working with operator Navitas Petroleum on the phased development of Sea Lion. Current plans include the Northern Development Area followed by additional development phases using FPSO infrastructure.
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