3 July 2013
Rockhopper Exploration plc
("Rockhopper" or the "Company")
Result of Court Hearing
High Court confirms the cancellation of the Company's Share Premium Account
Rockhopper Exploration plc (AIM: RKH), the North Falkland Basin oil and gas company, announces that at a hearing today, the Companies Court of the Chancery Division of the High Court of Justice confirmed the cancellation of the Company's share premium account ("Cancellation of Share Premium Account"). The Cancellation of the Share Premium Account is expected to become effective tomorrow, 4 July 2013.
As previously announced, it is the Directors' current intention that no decision for the Company to make dividend payments or to purchase its own shares would be made before the Company has completed an evaluation of its medium-term funding requirements.
Key to this evaluation is the completion of the concept selection process for the Sea Lion development and the on-going assessment of the capital gains tax provision arising from the farm-out of the Company's licence interests to Premier Oil in 2012. Only once this evaluation is substantially concluded will the Directors be in a position to consider the availability of capital that might be deployed in any share buy back or dividend payment should the Directors consider it appropriate.
Enquiries:
Rockhopper Exploration plc
Tel: 0207 016 9571
Sam Moody - Chief Executive (via Vigo Communications)
Peter Dixon-Clarke - Finance Director
Canaccord Genuity Limited (NOMAD and Joint Broker)
Tel: 0207 523 8000
Henry Fitzgerald-O'Connor
Giles Fitzpatrick
Vigo Communications
Tel: 0207 016 9571
Peter Reilly
Notes to Editors:
Rockhopper was established in February 2004 with a strategy to invest in and carry out offshore oil exploration to the north of the Falkland Islands. The Company floated on AIM in August 2005 with four offshore production licences: PL023, PL024, PL032 and PL033 which cover approximately 3,800 sq. km. Rockhopper has further smaller interests in licences PL003, PL004a and PL004c, which are operated by Desire Petroleum plc. Additionally, the Company has a significant interest in licence PL004b which contains the extension to the Sea Lion Field as well as the Beverley, Casper and Casper South discoveries.
An extensive work programme was carried out over a number of years on the licences operated by Rockhopper. This has included 2D and 3D seismic and controlled source electromagnetic mapping. In February 2010, the Ocean Guardian drilling rig arrived in Falkland waters to carry out a multi-well drilling campaign. Rockhopper drilled an exploration well on Sea Lion during April and May 2010, the result of which was the first oil discovery and Contingent Resource in the North Falkland Basin. The Sea Lion discovery was successfully tested during September 2010 and June 2011 and was the first oil to flow to surface in Falkland Islands waters. Rockhopper's drilling campaign lasted from 16 April 2010 to 8 January 2012 and resulted in seven successful wells of the ten drilled, with three oil discoveries, three gas discoveries, multiple successful Sea Lion appraisal wells and a successful appraisal well on Casper.
In October 2012 Rockhopper completed a farm-out agreement with Premier Oil plc, whereby Premier Oil acquired 60 per cent. of Rockhopper's interests in its North Falkland Basin licences, with a view to achieving first oil production from Sea Lion in 2017.
Rockhopper Exploration plc www.rockhopperexploration.co.uk
