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(Alliance News) - Rockhopper Exploration PLC on Thursday said it is making progress at the Sea Lion development, located offshore North Falkland basin.
Premier Oil PLC is the operator of Sea Lion.
Rockhopper said the Sea Lion project has been "substantially" de-risked from a technical, cost and schedule perspective through the post-FEED optimisation process.
Resources to be developed in the first phase of the project have increased from 220 to 250 million barrels, with associated capital expenditure to first oil estimated at USD1.8 billion.
"The project continues to build momentum with significant progress being made across key areas, all with the aim of moving into the execution phase post sanction," said Rockhopper Chief Executive Sam Moody.
The company also noted that key service and supply contracts are nearing final agreement in preparation for execution at project sanction.
In addition, Rockhopper said preliminary information memorandum and comprehensive set of independent expert reports were submitted to potential senior lenders, including export credit agencies in July.
"The preliminary information memorandum submission in late July has kicked off the formal application process for the senior debt financing guarantees for which we expect initial feedback in the final quarter of 2019," added Moody.
Rockhopper shares were trading 7.7% higher in London on Thursday at 19.39 pence each, while Premier Oil stock was 5.0% higher at 75.88p a share.
