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LONDON (Alliance News) - Rockhopper Exploration PLC Friday said pre-development activities on its Sea Lion project off the Falkland Islands are continuing as scheduled, and phase one of the development is expected to recover 293 million barrels of oil.
The Sea Lion prospect is located on Block 14/10 in Production Licenses 032 and 033 on the eastern basin margin of the Falkland Islands. Rockhopper wholly owns and operates the prospect.
In a trading update for the year ended March 31, the North Falkland Basin oil and gas exploration company said phase one of the Sea Lion development is expected to recover 293 million barrels of oil, with an increase in its anticipated gross peak production rate to over 100,000 barrels per day.
Rockhopper said it expects the award of front-end engineering and design contracts during May.
It also said that plans for a four-well exploration drilling campaign in 2015, is proceeding, and it is in "an advanced stage" of negotiations with rig providers.
"As we get closer to signing a rig contract we will be able to firm up our exploration drilling programme, which we expect would expose our shareholders to almost 800 million barrels," said Chairman Pierre Jungels in a statement.
The group said it ended the year with a cash balance of USD247 million.
"Our balance sheet remains strong and our core Sea Lion project continues to move forward with a number of key development milestones anticipated through the remainder of 2014," said Jungels.
Rockhopper shares were trading 5.1% higher Friday morning at 97.75 pence per share.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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