Rockhopper Exploration plc has signed detailed heads of terms for Harbour Energy plc to exit the Falklands Islands and for Navitas Petroleum LP to farm-in.
PARTNERS
Harbour will sell its interests leaving Rockhopper with 35% and Navitas 65% compared with 30% each previously.
Rockhopper and Navitas, the planned operator, will align working interests across their Falkland licences.
The two partners will jointly develop and agree a technical and financing plan for the project to achieve first oil on a lower cost and expedited basis.
Rockhopper said it would retain a higher working interest in Sea Lion than under the previous transaction in January 2020 between Premier [now Harbour] and Navitas.
The deal, expected to be finalised during Q1 2022, includes scope to upgrade the Sea Lion development or for future decommissioning
Sea Lion and its satellite fields are independently estimated to hold approximately 520 mmbbl of 2C contingent resources.
ADDITIONAL FUNDS
Rockhopper said that there was potential for an additional project partner depending on funding needs.
In such a case, the company would retain its working interest.
EXPERTISE
Chief executive Samuel Moody added that the farm-in with Navitas marked the start of a new chapter in the potential development of Sea Lion.
“We at Rockhopper have huge historic and detailed technical knowledge of the asset and experience of operating in the Islands, while Navitas brings significant proven capital raising expertise and ability as well as development experience.”
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