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(Sharecast News) - Rockhopper Exploration said on Wednesday that the Sea Lion project was now moving into full development after the North Falkland Basin oil field was sanctioned and financed late last year.
The AIM-traded oil and gas company said in its full-year results for 2025 that phase one of Sea Lion, located offshore to the north of the Falkland Islands, had been sanctioned, with first oil still targeted for the first quarter of 2028.
Rockhopper said debt financing was in place, comprising $1.0bn of senior debt, of which $350m related to Rockhopper.
The company also completed equity raises to fund its share of phase one, including placings that raised $142m and a significantly oversubscribed open offer that raised a further $9.2m.
Key project contracts had also been secured, including for the floating production, storage and offloading vessel, drilling rig, and drilling and completion services.
Rockhopper said notice had been served for the FPSO to disconnect in the UK, with the vessel having left its previous production location ahead of refurbishment work before deployment at Sea Lion.
Work on the phase one FPSO had also moved from the Middle East to Asia.
The joint venture was investigating the potential to accelerate later phases of development, and had signed a memorandum of understanding for a second, larger FPSO with production capacity of around 125,000 barrels per day.
An updated independent technical report estimated Rockhopper's working interest at 110 million barrels of 2P reserves, made up of 57.9 million barrels associated with phase one and 51.9 million barrels linked to phase two.
The report also estimated 211 million barrels of 2C resources and "significant upside potential".
Rockhopper said cash and term deposits stood at $179m at the end of December, including $8m classified as held for sale, compared with $20.9m a year earlier.
The company also noted that the Ombrina Mare arbitration award had been annulled. It received 31m under the terms of an insurance policy relating to the award, and a new arbitration request was made in September 2025, with the new funder responsible for all associated costs.
Chief executive Sam Moody said 2025 had been "a transformative period" for Rockhopper as Sea Lion moved into full development following its financing and sanction.
"We look forward to continuing our very constructive working relationship with operator Navitas in the coming months as we further progress the project," he said.
"We remain hugely grateful for shareholders' continuing support and look forward to updating them on Sea Lion in due course."
At 0940 BST, shares in Rockhopper Exploration were down 0.04% at 76.87p.
Reporting by Josh White for Sharecast.com.
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