Rockhopper Exploration plc (AIM: RKH), the oil and gas exploration and production company with key interests in the North Falkland Basin and the Greater Mediterranean region, is pleased to announce its results for the six months ended 30 June 2018.

Year to date highlights

Sea Lion Phase 1 development - contractors in place; further FEED awards; ramping up activity and development team headcount

·     Letters of Intent signed with all key contractors for a range of services and vendor financing

·     FEED contracts awarded for all outstanding elements of the project scope

·     Field Development Plan substantially agreed with the Falkland Islands Government

·     Environmental Impact Statement public consultation process completed

·     Significant progress made on a number of technical fiscal matters with the Falkland Islands Government

·     Project momentum building with budget approved to expand Operator's project development team

Building a production base to maintain balance sheet strength and fund future growth

·     Net working interest production averaged 1.1 kboepd in H1 2018

·     Successful Al Jahraa-6 development well at Abu Sennan with oil encountered in multiple reservoirs - well currently being completed for testing and production

Strong H1 financial performance with continued focus on managing costs

·     Revenue of US$5.2 million; cash flow from operations US$4.9 million

·     Cash operating costs of US$11.0 per boe - maintaining a low cost base

·     Continued management of G&A costs - US$2.3 million - down over 50% since 2014

·     G&A costs covered by operating cash flows

·     Balance sheet strength maintained with cash resources of US$46.4 million at 30 June 2018 and no debt

Corporate

·     Alison Baker appointed as Independent Non-Executive Director

Outlook

·     Ramping up of Sea Lion development towards project sanction; focus for 2018 remains on securing senior debt to allow project sanction in mid 2019

·     Year end 2018 cash estimated to be in excess of US$30 million providing continued balance sheet strength

·     Ongoing drilling at Abu Sennan with two further wells planned during 2018

·     Ombrina Mare arbitration hearing date set for early February 2019

·     Continued pursuit of new venture opportunities to add production and cash flow

David McManus, Chairman of Rockhopper, commented: 

"We continue to work closely with the Operator to progress Sea Lion and, while much work still needs to be done to finalise the funding of the development, we are very encouraged with the current momentum in the project and to have agreed the increased activity and headcount proposed by Premier. With oil prices currently above US$75 per barrel we are focussing all of our efforts on doing everything possible to allow project sanction to take place next year.

"Notwithstanding the increased activity and spend on Sea Lion, the Company continues its ongoing focus on cost control and has maintained a strong balance sheet with cash resources at mid 2018 of US$46 million and no debt."