Rockhopper Exploration plc plans to raise up to US$140 million (£105m) from “new Israeli-based institutional investors” and “larger existing shareholders” for its share of the Sea Lion oil project’s first phase development.
PLACINGS
The company holds 35% of the North Falkland Basin field and needs $127m for phase I of operations.
Rockhopper has received “firm commitments” for the two-tranche 13.3% discounted conditional placing of up to 198,207,354 new ordinary shares and 49,551,833 underwriting warrants at an issue price of 53 pence.
The firm placing of 162,813,189 firm placing shares and 40,703,294 firm underwriting warrants will raise approximately $115m.
The shares in the firm placing amount to approximately 32% of the company’s existing issued ordinary share capital.
The financing is conditional upon a final investment decision, expected by the end of 2025 and no later than 31 March 2026, on the phase I development plan.
A conditional placing of 35,394,165 conditional placing shares and 8,848,539 conditional underwriting warrants will raise approximately $25m.
The second placing is subject to shareholders’ approval and a final investment decision on the phase I development plan together with the firm placing.
Every four placing shares will have one underwriting warrant attached to subscribe for one new ordinary share at a price of 80 pence.
The public is excluded from the placing.
Rockhopper also plans a open offer by the end of 2025 for existing shareholders to subscribe for new ordinary shares at 53 pence each, with a target of up to €8m ($9.2m / £6.9m).
The open offer, subject to shareholder approval, is conditional upon the firm placing and conditional placing.
FIRST OIL
Phase I, on the northern development area of Sea Lion, targets 170 mmbbls of gross 2C resource by drilling seven oil producer wells, one gas injector and three water injector wells.
Rockhopper said that Israeli partner Navitas Development and Production Ltd, an indirect subsidiary of operator Navitas Petroleum LP (65%), estimated total post-FID funding of $1.658 billion to first production.
A further $2.058bn, needed to project completion on phase I, is expected from senior secured debt financing of $1bn, $790m of project equity and first oil revenue.
Rockhopper added that phase II could be financed using extra cash from phase I production.
Navitas is targeting first oil for Q1 2028.
At a general meeting on 27 June 2025 , Rockhopper received authorities to allot shares or rights which would cover the firm placing.
As at 30 June 2025, the company had $21.6m and expects €31m ($35.7m / £26.8m) from the insurance policy on the annulment of the Ombrina Mare arbitration award.
Rockhopper also holds licences and operatorship of licences prospective for gas in the South and East of the Falkland Islands.