Rockhopper Exploration Plc · LSE:RKH
Rockhopper Exploration — Merger or Acquisition (January 2020)
15 slides from Rockhopper Exploration's merger presentation, Jan 7, 2020
Slide 1: Heads of Terms with Navitas Petroleum to farm-in to the Sea Lion project
Heads of Terms with Navitas Petroleum to farm-in to the Sea Lion project 7 January 2020
Slide 2: Important Notice
Important Notice This Presentation does not constitute an offer or invitation or a solicitation of any offer or invitation for the sale or purchase of any securities in the Company. In addition, it is not intended to form the basis of or act as an inducement to enter into any contract or investment
Slide 3: Transaction highlights
Transaction highlights → Navitas to acquire 30% working interest in licences PL032, PL004B, PL004C → Adds financial strength to the Sea Lion joint venture increasing the likelihood of a successful project financing → Working interests aligned across the Sea Lion licences (PL032, PL004B and PL004C):
Slide 4: Benefits of the Transaction
Benefits of the Transaction → Brings additional paying partner into the Sea Lion development → Strengthens joint venture and improves likelihood of successful project financing → Further industry validation → Rockhopper fully funded for Phase 1 from 1 January 2020 → Protects Rockhopper’s balance she
Slide 5: Sea Lion Phase 1 development
Sea Lion Phase 1 development Proven development concept → Conventional new-build FPSO / subsea development → Extensive project development and engineering complete Up to 29 wells (20 oil producers) 250 million barrels recoverable resource $1.8bn capex to first oil $4bn NPV10 at first oil * * Rockhop
Slide 6: Navitas – an introduction
Navitas – an introduction → Navitas Petroleum LP is a publicly traded North American focussed E&P partnership (TASE:NVPT.L) → Development focussed asset portfolio → 2020 forecast production >3,000 bopd → Work programme in place to bring production to over 40,000 bopd by 2023 (excl. Sea Lion) → 2024
Slide 7: Appendix
6 ROCKHOPPER EXPLORATION PLC Appendix NORTH FALKLANDS BASIN
Slide 8: Transaction details
Transaction details Issue Detail Working Interest • Alignment across PL032, PL004b and PL004c - Premier 40% / Rockhopper 30% / Navitas 30% Phase 1 funding • Existing funding arrangements between Rockhopper and Premier replaced • Premier will carry Rockhopper from 1 January 2020 to 29 February 2020 •
Slide 9: Transaction process, timeline and conditions
Transaction process, timeline and conditions Share and Purchase Agreement signing targeted for late Q1 2020 (“SPA Signing”) → Conditional on: → Completion of Navitas due diligence → Agreement of Definitive Transaction Documentation and associated Phase 1 project documents Completion of transaction t
Slide 10: The North Falkland Basin - a world class hydrocarbon province
The North Falkland Basin - a world class hydrocarbon province → Benign met-ocean conditions in c.450 meters water depth → Extensively appraised → Excellent quality 3D seismic across entire field → 8 well penetrations, 2 production tests → Extensive suite of high quality well data → Discovered and in
Slide 11: Potential for multiple phases of development
Potential for multiple phases of development Phase 1 → Commercialising 250 mmbbls gross Phase 2 → Commercialising >270 mmbbls gross → ~80 kbopd gross plateau production → Focused on southern part of Sea Lion RKH RKH and adjacent discoveries (Zebedee) → Project sanction: within next 12 months 30% (su
Slide 12: Strong contractor team
Strong contractor team Tier 1 supply chain in place Letters of Intent with key contractors → Experienced in comparable projects → Leveraging Premier’s recent Catcher experience Drilling FPSO Rig SURF/SPS → Supply chain and logistics proven after multiple drilling campaigns → Alignment via provision
Slide 13: Supportive government and regulatory framework
Supportive government and regulatory framework Regulatory interface well advanced → Regulatory reviews and approval processes progressing → Comprehensive assurance process → Field Development Plan substantially agreed → Extensive environment work completed Attractive fiscal regime → Positive commerc
Slide 14: Robust economics and financing plan
Robust economics and financing plan Robust project economics Financing plan advanced → Project optimised through the FEED process → PIM and lender due diligence reports submitted to senior → Substantial value lenders including Export Credit Agencies in July 2019 → Rapid pay-back with high capital ef
Slide 15: Offshore Falkland Islands acreage map
Offshore Falkland Islands acreage map 15
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