Last checked at 27 Mar 2013 07:00
Embargoed: 0700hrs 27 March 2013
Rockhopper Exploration plc
("Rockhopper" or the "Company")
Proposed Cancellation of the Company's Share Premium Account
Rockhopper Exploration plc (AIM: RKH), the North Falkland Basin oil and gas company, announces that it will post a circular before the end of April 2013 to seek authority from shareholders to cancel the share premium account of the Company so as to create distributable reserves. The cancellation of the Company's share premium account will be subject to the approval of the High Court who will need to be satisfied that the interests of the Company's creditors and contingent creditors will not be prejudiced as a result of the cancellation.
On successful completion of the cancellation of the share premium account, the distributable reserves created would, subject to any undertakings given to the High Court, then be available for the funding of dividends, to facilitate any buy-back of the Company's own shares or for any other general corporate purposes which the Directors may consider appropriate at that time. As the Company does not currently have the authority to buy-back its own shares the circular will also seek that authority from shareholders.
Any decision by the Directors in relation to the use of the authorities referred to above will be made once the Company has completed an evaluation of its medium term funding requirements. Concept Selection for the Sea Lion development, which is anticipated to be in July of this year, will be a key part of this evaluation, as we expect it to provide greater clarity on the expected cost and schedule of the project.
Notes to Editors:
Rockhopper was established in February 2004 with a strategy to invest in and carry out offshore oil exploration to the north of the Falkland Islands. The Company floated on AIM in August 2005 with four offshore production licences: PL023, PL024, PL032 and PL033 which cover approximately 3,800 sq. km. Rockhopper has further smaller interests in licences PL003, PL004a and PL004c, which are operated by Desire Petroleum plc. Additionally, the Company has a significant interest in licence PL004b which contains the extension to the Sea Lion Field as well as the Beverley, Casper and Casper South discoveries.
An extensive work programme was carried out over a number of years on the licences operated by Rockhopper. This has included 2D and 3D seismic and controlled source electromagnetic mapping. In February 2010, the Ocean Guardian drilling rig arrived in Falkland waters to carry out a multi-well drilling campaign. Rockhopper drilled an exploration well on Sea Lion during April and May 2010, the result of which was the first oil discovery and Contingent Resource in the North Falkland Basin. The Sea Lion discovery was successfully tested during September 2010 and June 2011 and was the first oil to flow to surface in Falkland Islands waters. Rockhopper's drilling campaign lasted from 16 April 2010 to 8 January 2012 and resulted in seven successful wells of the ten drilled, with three oil discoveries, three gas discoveries, multiple successful Sea Lion appraisal wells and a successful appraisal well on Casper.
In October 2012 Rockhopper completed a farm-out agreement with Premier Oil plc, whereby Premier Oil acquired 60 per cent. of Rockhopper's interests in its North Falkland Basin licences, with a view to achieving first oil production from Sea Lion in 2017.
Rockhopper Exploration plc www.rockhopperexploration.co.uk