Rockhopper Exploration Plc · LSE:RKH

Rockhopper Exploration — Merger or Acquisition (July 2012)

13 slides from Rockhopper Exploration's merger presentation, Jul 12, 2012

  1. Slide 1: Farm-Out Agreement with Premier Oil

    ROCKHOPPER EXPLORATION PLC FARM‐OUT AGREEMENT WITH PREMIER OIL JULY 2012

  2. Slide 2: Disclaimer

    DISCLAIMER Forward looking statements Certain statements in this document are forward-looking statements which are based on the Company's expectations, intentions and projections regarding its future performance, anticipated events or trends and other matters that are not historical facts. These sta

  3. Slide 3: Highlights of the Transaction

    HIGHLIGHTS OF THE TRANSACTION • Premier Oil plc (“Premier”) to acquire 60 per cent. of Rockhopper’s interests in its North Falkland Basin licences – US$231 million upfront cash payment on completion of transaction – US$722 million Sea Lion development carry (net to Rockhopper) – US$48 million explor

  4. Slide 4: Implications of the Transaction

    IMPLICATIONS OF THE TRANSACTION • Rockhopper will be fully funded on its share of the Sea Lion development through the Development Carry and standby financing arrangement provided by Premier ‐ with the option to secure third party financing in place of the standby financing arrangement, if Rockhoppe

  5. Slide 5: Premier Oil a Good Fit for the Sea Lion Development

    PREMIER OIL A GOOD FIT FOR THE SEA LION DEVELOPMENT • Premier is a strong operator with FPSO experience in similar conditions to North Falkland Basin • Premier FPSO operating experience includes: – Chim Sao, offshore Vietnam – West Natuna, Indonesia – Balmoral, UKCS • Operates in 8 countries through

  6. Slide 6: Financing Sea Lion and Adjacent Discoveries

    FINANCING SEA LION AND ADJACENT DISCOVERIES ILLUSTRATIVE EXAMPLE IF STANDBY FINANCING IS TAKEN UP Leased FPSO pre first oil – c.US$2bn US$ million Purchased FPSO pre first oil – c.US$3bn Total development capex (gross) 5,000 Rockhopper share of capex 2,000 Development carry (including pre‐FDP) 722 S

  7. Slide 7: Detailed Acreage Position Post Farm Out

    DETAILED ACREAGE POSITION POST FARM OUT – SUBJECT TO REGULATORY AND PARTNER APPROVALS Licence RKH Operator interest PL032 40% Premier PL033 40% Premier PL023 40% Premier PL024 40% Premier PL003 3% Desire PL004a 3% Desire PL004b 24% Premier PL004c 10% Desire 7

  8. Slide 8: Post Farm Out Asset Base

    POST FARM OUT ASSET BASE Pre‐Farm Out CPR (1) Post‐Farm Out 40% Retained (1) Contingent Oil Resources Net to Rockhopper (probabilistic) Contingent Oil Resources Net to Rockhopper (probabilistic) Millions of barrels Millions of barrels 1C 2C 3C 1C 2C 3C • Pre Farm Out GCA CPR Sea Lion 194.7 307.4 446

  9. Slide 9: Falklands Continue to be Core Focus Area

    FALKLANDS CONTINUE TO BE CORE FOCUS AREA • High retained equity stake in de‐risked North Falkland Basin acreage • Successful risk spreading within Falklands acreage Falklands Acreage Risk Spreading Development Sea Lion now fully funded Appraisal Casper / Casper South / Beverley Exploration Multiple

  10. Slide 10: AMI

    AMI Offshore Areas • North Falkland Basin • Namibia • South Africa • Southern Mozambique Equity Split • RKH 40% • PMO 60% 10

  11. Slide 11: AMI Similarity to North Falkland Basin

    AMI SIMILARITY TO NORTH FALKLAND BASIN • AMI targets geological province that is continuation of Cretaceous rifted eastern margin play of the opening Southern Atlantic • Lower Cretaceous lacustrine / marine source potential within primary oil window offshore South Africa and Namibia • Southern Mozam

  12. Slide 12: Rockhopper Sub-Surface Team

    ROCKHOPPER SUB‐SURFACE TEAM • Fully resourced sub‐surface team grown through exploration & appraisal phase • In excess of 30 experienced individuals wholly or significantly contributing to current technical work programme • Farm down enables core team to : – Focus on maximising the significant upsid

  13. Slide 13: Summary

    SUMMARY • Rockhopper will be fully funded on its share of the Sea Lion development through the Development Carry and standby financing arrangement provided by Premier ‐ with the option to secure third party financing in place of the standby financing arrangement, if Rockhopper so chooses • Rockhoppe

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