TIDMRKH
RNS Number : 8553F
Rockhopper Exploration plc
26 February 2018
26 February 2018
Rockhopper Exploration plc
("Rockhopper" or the "Company")
Greater Mediterranean Update
Rockhopper Exploration plc (AIM: RKH), the oil and gas company
with key interests in the North Falkland Basin and the Greater
Mediterranean region, is pleased to provide the following
operational and corporate update in relation to its Greater
Mediterranean portfolio.
-- Improved production from Abu Sennan with current production
at 4,000 boepd gross (880 boepd net to RKH)
-- Continued strong realised pricing with oil from Abu Sennan sold at a small discount to Brent
-- Four well drilling programme across Abu Sennan and El Qa'a Plain in 2018
-- Egyptian receivables significantly reduced with all historic
liabilities to Beach Energy now satisfied
Abu Sennan, Egypt (22% working interest)
Current production from the Abu Sennan concession has been
maintained from end-2017 levels at approximately 4,000 boepd gross
(approximately 880 boepd net to Rockhopper). H2 2017 production
exceeded budget through continuous production optimisation
primarily at the El Salmiya field.
A full review of the prospect and lead inventory for the Abu
Sennan concession was completed in November 2017, and has high
graded targets for exploratory drilling.
Following joint venture approval, an active programme has been
agreed for 2018 including the drilling of one exploration well
("Prospect S"), two development wells and a water injection
programme targeting the Al Jahraa field.
Prospect S is an opportunity in the adjacent fault block to the
Al Jahraa field. It has a similar tilted fault block trap and is
targeting the same Abu Roash reservoirs that produce at Al Jahraa.
The development programme at the Al Jahraa field is designed to
increase reserves and field production rates.
Subject to securing a suitable rig, drilling is expected to
commence in April 2018 for approximately six months with total
capital expenditure, net to Rockhopper's 22% interest, of
approximately US$3 million.
El Qa'a Plain, Egypt (25% working interest)
In 2015/16, the first 3D seismic in El Qa'a Plain concession was
acquired and processed, in addition to a number of new 2D lines.
Horizon mapping on the new data has been integrated with vintage
data, and a basin modelling study has been completed across the
concession.
As a result, and following joint venture approval, commitment
well Raya-1X is expected to be spudded in Q2 2018. This well will
target the Nukhul Formation reservoir, known from the Gulf of Suez,
in a tilted fault block structure, close to where oil has been
tested from the same formation.
Expenditures on the El Qa'a Plain concession, net to
Rockhopper's 25% interest, are anticipated to be less than US$1
million.
Egypt payment situation
Rockhopper has recently received a gross payment of US$3 million
from Egyptian General Petroleum Corporation ("EGPC") towards its
outstanding receivables balance.
As at 23 February 2018, Rockhopper's EGPC receivable balance was
approximately US$4.5 million (unaudited). Since the completion of
the acquisition of Beach Egypt in August 2016, gross payments from
EGPC have been approximately US$12.5 million, significantly in
excess of the US$7.2 million invoiced.
Under the terms of the acquisition of Beach Egypt, a proportion
of any payments received are paid to Beach Energy until their
historic receivable position is satisfied. Following the latest
payment received from EGPC, no further payments are due to Beach
Energy.
Italian portfolio
Production at the Guendalina gas field (Rockhopper 20% working
interest) continues to perform to forecast with 2017 production
averaging approximately 290 boepd net to Rockhopper.
At the Civita gas field (Rockhopper 100% working interest),
production during 2017 averaged approximately 130 boepd. However,
in early February, a depressurisation event occurred at the Civita
pipeline and as a result production is temporarily suspended. Work
has commenced to remedy the issue and resume production. Rockhopper
and Cabot Energy continue to work towards the completion of the
previously announced transaction to divest certain non-core onshore
assets in Italy, including Civita, to Cabot Energy.
Sam Moody, Chief Executive of Rockhopper, commented:
"2018 sees an active exploration and development drilling
programme across both our licences in Egypt. Our Abu Sennan
concession continues to perform well with production of around
4,000 boepd gross and crude sold at a small discount to Brent.
"The payment situation in Egypt continues to improve, helped by
a number of world-class gas projects in the Egyptian Mediterranean
recently being brought into production. With the deferred
consideration to Beach Energy now fully paid out, Rockhopper will
benefit from 100% of the payments from EGPC relating to its net
interest going forward."
Enquiries:
Rockhopper Exploration plc
Sam Moody - Chief Executive
Stewart MacDonald - Chief Financial Officer
Tel. +44 (0) 20 7830 9704 (via Vigo Communications)
Canaccord Genuity Limited (NOMAD and Joint Broker)
Henry Fitzgerald-O'Connor/James Asensio
Tel. +44 (0) 20 7523 8000
Peel Hunt LLP (Joint Broker)
Richard Crichton
Tel. +44 (0) 20 7418 8900
Vigo Communications
Patrick d'Ancona/Ben Simons
Tel. +44 (0) 20 7830 9704
Note regarding Rockhopper oil and gas disclosure
This announcement has been approved by Rockhopper's geological
staff which includes Lucy Williams (Geoscience Manager) who is a
Chartered Geologist, a Fellow of the Geological Society of London
and a Member of both the Petroleum Exploration Society of Great
Britain and American Association of Petroleum Geologists, with over
25 years of experience in petroleum exploration and management and
who is the qualified person as defined in the Guidance Note for
Mining, Oil and Gas Companies issued by the London Stock Exchange
in respect of AIM companies.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
This information is provided by RNS
The company news service from the London Stock Exchange
END
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