Gold prices steady, holding sharp gains in wake of soft U.S. jobs data
LONDON - Rockhopper Exploration plc (AIM:RKH) has secured firm commitments to raise up to $140 million through a conditional two-tranche placing to fund its portion of the Sea Lion oil field development in the North Falkland Basin.
The placing consists of a $115 million firm placement and a $25 million conditional placement, both priced at 53 pence per share, representing a 13.3% discount to the 30-day volume-weighted average price. Each investor will receive one warrant for every four shares subscribed, exercisable at 80 pence per share.
The funds will support Rockhopper’s 35% share of the Phase 1 development of Sea Lion, which aims to recover 170 million barrels of oil through 11 wells. Navitas Petroleum LP, which holds the remaining 65% interest and serves as operator, estimates total post-final investment decision (FID) funding requirement at $1.66 billion to first oil and $2.06 billion to project completion.
The company also announced plans for an open offer to existing shareholders who aren’t participating in the placing, seeking to raise up to €8 million ($9.2 million) at the same price.
"Having discovered Sea Lion some 15 years ago, we are obviously delighted to be able to announce this equity fundraise, which we are confident puts Rockhopper in the strongest possible position to take FID by the end of this year," said Sam Moody, CEO of Rockhopper Exploration.
The placing is conditional upon a final investment decision for Phase 1, which is targeted by year-end 2025. First oil is expected in the first quarter of 2028, with peak production from Phase 1 anticipated at approximately 50,000 barrels per day.
According to a recent independent resource evaluation, the Sea Lion field contains total gross 2C resources of 917 million barrels, with 321 million barrels attributable to Rockhopper’s interest.
The announcement was made in a press release statement from the company.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.