Rockhopper plans further exploration

16th Nov 2010 15:17

There was little in the way of surprises in Rockhopper Exploration's interim figures because of the regular drilling updates from the Falkland Islands oil and gas explorer but they show that Rockhopper still has plenty of cash to spend. There was a $35m cash outflow, mainly related to capitalised exploration spending, in the six months to September 2010. The total cost of exploration in the period was $67.7m but $30.9m of that was covered by restricted cash that was transferred to escrow accounts in the previous financial year. Rockhopper raised $68.1m during the six month period and had $48.4m in the bank, plus restricted cash of $5m, at the end of September 2010. Since then, a further $325.7m after expenses has been raised.The cash is being used to appraise and produce a field development plan for the Sea Lion discovery offshore of the Falkland Islands. It will also be spent on further exploration wells and data. Rockhopper is acquiring 3D seismic data from Polarcus. Rockhopper drilled an unsuccessful well on the Rachel prospect and on 9 November it announced it was drilling another well 1.7km north of the previous one. Rockhopper is in negotiations with Diamond Drilling Offshore about extending the drilling campaign of the Ocean Guardian rig.