Rockhopper Losses Widen on Charges

Mediterranean and Falkland Islands-focused producer Rockhopper Exploration lost three times more in 2019 as a result of impairment charges, it reported on April 8.

Cost of sales increased 22% to $10.39mn, while revenues were down 2.4% at $10.3mn. It also booked $10mn in impairment charges, although this was partly offset by smaller exploration write-offs of $1.97mn, versus $5mn a year earlier. Capital expenditure was also higher 51% higher in 2019 at $23.9mn.

As a result, Rockhopper posted a $20.6mn loss in 2019, compared with a $7.1mn loss for the previous year.

Chairman Keith Lough said the company was in a stable financial position with $22mn in cash as of April 1. In January it signed preliminary agreement to bring on board Navitas as a partner at the Premier-operated Sea Lion oilfield off the Falklands, shoring up financing for the project's first phase. 

Rockhopper, which will have a 30% interest in Sea Lion once the deal with Navitas is completed, says the field will be "transformational" for the company. The partners are targeting 220-250mn barrels of crude at the site, with an estimated $1.8bn required to achieve first oil.

In February Rockhopper also sold its Egyptian assets to fellow London-listed player United Oil and Gas.

Rockhopper produced 1,300 boe/d of oil and gas in 2019, up from 1,100 boe/d in the previous year.