(ShareCast News) - Rockhopper Exploration progressed on integrating its recent acquisitions, while completing a resource audit of its acreage in the North Falklands basin and increasing production from its Italian and Egyptian sites.For the six months ended 30 June, revenue increased by about 45% to $2.9m, compared to the same period last year, exclusively due to the sale of natural gas and condensate from increased production volumes at the Guendalina site in Italy and the commencement of production at Civita in November 2015.Profit after tax on the other hand jumped 213% to reach $131.3m, due to the excess fair value over consideration resulting from the acquisition of Falkland Oil and Gas (FOGL) in January.AIM-listed Rockhopper said it was delighted that its audit had confirmed the company's net 2C oil contingent resource base in the North Falkland basin had incerased to more than 270m barrels, and over 300m barrels after including management estimates for the Emily, Isobel and Isobel Deep J fans.Significantly, the outfit revised its estimate of the necessary capital expenditures for first oil from Sea Lion from $1.8bn to $1.5bn, with the break-even oil price estimated at $45 per barrel.Management reiterated its view that the North Falkland basin has the potential to ultmately deliver a billion barrels of recoverable oil.The group's gas was sold under short-term contract with an average realised price of €0.14 per standard cubic metre, or about $26 per barrels of oil equivalent, linked to the Italian virtual exchange point gas marker price.Despite a 27% increase in the price of brent oil from $37 per barrel in January to about $47 at the end of August, the price remained weak, as it fell 16% over the period, the company said in a statement.Following the acquisition of Beach Egypt, average group production of 1,500 barrels of oil equivalent per day was expected during the remainder of 2016.Cash operating costs rose 55% to $1.7m due to the increased production from Guendalina and Civita. However, cash operating costs on a per barrel of oil equivalent reduced from $26 to $15.General and administration costs, excluding acquisitions, fell 7% to $3.8 million. Non-recurring costs associated with the FOGL acquisition were offset by the cash balance acquired.Cash resources rose 41% to $65.4m, compared to December 2015, and the company said it had no debt.Furthermore, as of 1 September they stood at roughly $75m after receiving the full exploration carry from Premier and taking into account the consideration paid in relation to the purchase of Beach Egypt.Chairman David McManus, said: "We continue to make very good progress in advancing the Sea Lion development, taking advantage of the current industry backdrop to reduce costs and the breakeven oil price required to sanction."The results of the highly successful exploration campaign and the subsequent independent resource audit further supports Rockhopper's view that the North Falkland basin has the potential to deliver multiple future phases of development and, ultimately, a billion barrels of recoverable oil."As a result of the recently concluded acquisition of Beach Egypt, our production for the remainder of 2016 is estimated to be approximately 1,500 barrels of oil equivalent per day, with operating cash flows expected to broadly cover the group's overheads going forward."Shares in Rockhopper Exploration were up 3.7% to 28p at 1106 BST.
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