Rockhopper shares rise on updated Sea Lion field report

2nd Apr 2026 09:56

(Sharecast News) - Rockhopper Exploration said on Thursday that an updated independent report on its Sea Lion field in the North Falkland Basin had confirmed over 100 million barrels of net 2P reserves, following the reclassification of resources after a final investment decision.

The AIM-traded company said the report by Netherland, Sewell & Associates, effective 31 December, reclassified volumes in the Northern Development Area phases one and two from contingent resources to reserves after the project was sanctioned in December.

Gross 2P reserves totalled 313.8 million barrels, with Rockhopper's 35% working interest equating to 109.8 million barrels.

Future net revenue attributable to Rockhopper's stake was estimated at $3.1bn on an undiscounted basis, or $965.8m on an NPV10 basis.

On a 3P basis, total gross reserves were estimated at 408.2 million barrels, with working interest net reserves of 142.9 million barrels.

The report also outlined significant contingent resources, with best estimate (2C) gross volumes of 603.2 million barrels, or 211.1 million barrels net to Rockhopper.

Associated unrisked net cash flows for development-pending resources were estimated at $4.29bn undiscounted, or $1.2bn on an NPV10 basis.

Rockhopper said overall resource volumes were broadly consistent with its previous independent assessment published in June, while the reclassification of reserves reflects progress towards development.

Phase two of Sea Lion was expected to be funded from cash flow generated by phase one, with later phases remaining classified as contingent resources.

The company added that it had a cash balance of approximately $179m at the end of 2025, which it expected to be sufficient to fund its share of capital expenditure for phase one.

"We are delighted to book in excess of 100 million barrels of 2P reserves following the sanction of Sea Lion phase one - another milestone for Rockhopper," said chief executive Sam Moody.

"The new NSAI report independently confirms the significant value we are now on the path to unlocking.

"Navitas, our operator, has recently reported good progress on the project and has reiterated its target for first oil in early 2028."

The development plan for Sea Lion was based on a multi-phase scheme using two floating production, storage and offloading vessels, with the Aoka Mizu FPSO expected to leave its current location in mid-2026 for refurbishment ahead of deployment to the field.

At 1144 BST, shares in Rockhopper Exploration were up 6.96% at 83p.

Reporting by Josh White for Sharecast.com.

See latest RNS on Investegate