Rockhopper Exploration Secures US$140 Million Capital Raise for Sea Lion Oil Project in Falkland Islands

Funding Secured for Key Falkland Islands Project

Rockhopper Exploration PLC (AIM: RKH) has announced a successful capital raise of up to US$140 million, significantly boosting prospects for the Sea Lion oil project in the North Falkland Basin. This funding is intended to cover Rockhopper's equity requirements for the first phase of the development, moving the long-anticipated project closer to a Final Investment Decision (FID) by the end of 2025.

Details of the Capital Raise and Project Financing

The capital raise consists of several components: a 'firm' placing tranche of US$115 million and a 'conditional' placing tranche for an additional US$25 million, which is subject to shareholder approval. Furthermore, a separate open offer aims to raise up to €8 million (approximately US$9.2 million). All funds raised will be held in escrow and will only be released if the FID for Phase 1 is reached by the deadline of March 31, 2026.

This equity injection is vital for Rockhopper's 35% working interest in the Sea Lion project, with the company estimating its share of Phase 1 development costs at approximately US$102 million, including a 5% project contingency. The overall Phase 1 development is a substantial undertaking, with operator Navitas Petroleum LP, holding a 65% interest, estimating the total post-FID funding requirement at US$1.66 billion to first oil and US$2.06 billion to project completion. Navitas is also working to secure a US$1 billion senior debt facility to support the project.

Sea Lion Project Overview and Development Timeline

The Sea Lion oil field, located approximately 220 kilometers north of the Falkland Islands, is a significant discovery with total gross 2C resources of 917 million barrels, of which 321 million barrels are attributable to Rockhopper's net working interest. Phase 1 of the development aims to recover 170 million barrels of oil through 11 wells. First oil is anticipated in the first quarter of 2028, with peak production from this initial phase projected to reach approximately 50,000 barrels per day.

The project has faced previous delays, with the FID being pushed to the second half of 2025 to allow for comprehensive financing plans and bank due diligence. Despite these challenges, Rockhopper's CEO, Sam Moody, expressed confidence in the recent fundraise, stating, 'Having discovered Sea Lion some 15 years ago, we are obviously delighted to be able to announce this equity fundraise, which we are confident puts Rockhopper in the strongest possible position to take FID by the end of this year and to reach project completion of the first phase of Sea Lion with no additional equity dilution.'

Looking Ahead

The securing of this capital raise marks a critical step forward for the Sea Lion project, positioning Rockhopper Exploration to meet its financial commitments for the initial development phase. With the FID targeted for later this year, the project holds the potential to significantly impact the economic landscape of the Falkland Islands. The successful completion of this funding round, alongside ongoing efforts by Navitas Petroleum to finalize broader project financing, underscores a renewed momentum for the long-awaited offshore oil development.