Rockhopper Exploration plc reported a revised $2.2 billion development plan showing phased drilling of 23 wells for 269 million barrels of oil at the Sea Lion joint venture project in the North Falkland Basin.
SEA LION
In its 2022 presentation, the company described the Sea Lion project as a world class field that was larger than the North Sea Cambo oil and Rosebank oil and gas fields combined.
RESOURCE REPORT
The revised proposals were published by joint venture partner and operator Navitas Petroleum LP (65%) and include an independent resource report by Netherland Sewell & Associates (NSAI).
The plans show reduced upfront capex, reduced life of field costs, and increased recoverable resources compared with the previous development scheme.
PHASES
The plan assumes a leased FPSO and a 100% working interest for 2C contingent resources in two phases.
Phase I will involve 18 wells, 11 of which will be before first oil.
Five additional wells will be drilled in Phase II, approximately 42 months after first oil, and will also be tied into the FPSO to extend the production plateau.
PRODUCTION
The plateau production rate will be 80,000 bbls/d with a peak rate of 100,000 bbls/d.
Recovery of more than 269 MMbbls of oil (2C development pending) is out of 712 MMbbls (2C total) which includes 443MMbbls 2C in the development unclarified category of additional resources.
Rockhopper said these include Sea Lion and Isobel/Elaine which could be developed under future phases but for which there was currently no published development plan.
| 1C (MMbbls) | 2C (MMbbls) | 3C (MMbbls) | |
| Development Pending | 204 | 269 | 368 |
| Development Unclarified | 247 | 443 | 761 |
| Total | 451 | 712 | 1,129 |
FINANCES
Phase I capex will total US$1.8bn and pre first oil capex will reach US$1.3bn.
For life of the field, the cost per barrel will involve capex of $7.50 and opex of $20.10.
Rockhopper said that Navitas continued to optimise the new development plan which is subject to change.
Work will focus on the financing plan before reaching a final investment decision (FID) during 2024.
Based on a redeployed FPSO, a timeline of 30 months is envisaged from FID to first oil, with drilling anticipated to commence approximately 12 months post FID.
PROGRESS
Chief executive Samuel Moody added that new development plan was “hugely encouraging progress”.
“Our co-operation with Navitas is making real progress technically and commercially, and we believe the newly reworked Sea Lion project represents an eminently financeable proposition, despite all the well-known political challenges.
“We have developed a strong relationship with Navitas and will continue to work closely to support them as required as we progress together towards sanction at Sea Lion.”