Rockhopper Exploration Share Discussion Threads

[schachmeister] 16/12/2020 20:19

I liked this part " The 530 million barrel Sea Lion project is a material opportunity for the Premier group and its partner",...The obviously see value in SL 😊

[chinahere] 16/12/2020 18:50

Summary of economic and fiscal regime in the Falkland Islands
A 9 per cent. royalty is payable under the licences. Each licence carries an annual rental charge
which is calculated at an escalating rate on each square kilometre the licence covers at that date.
The rental charge is not payable for any field that is paying royalty.
Corporation tax is currently 26 per cent. on all profits from exploration and extraction activities.
100 per cent. tax depreciation allowance will be available in the amount of US$231 million relating
to consideration paid by the Premier Group when farming-in to Rockhopper’s licence interests. In
addition, Premier has further allowances and pre-trading losses totalling US$467 million available to
offset future Sea Lion profits.
A 100 per cent. depreciation allowance is available on intangible expenditures. Tangible expenditure
attracts 25 per cent. declining balance allowance.
Premier has engaged and continues to engage collaboratively with the Falkland Islands Government
to ensure that the fiscal regime is well defined and stable to project sanction.

[chinahere] 16/12/2020 18:49

(B) Falkland Island exploration assets
Commencing in March 2015, Premier carried out a Falkland Islands exploration campaign, which
targeted multiple stacked fans in PL004. The Zebedee well was declared a discovery, having
penetrated multiple targets in the cretaceous F2 and F3 formations with a total hydrocarbon net pay
of 136 feet, adding around 100 mmbbls of resource to a potential Phase 2 development.
The Isobel Deep well, which was the first test of the Isobel/Elaine fan complex, encountered oilbearing sandstones at the prognosed depth and opened up a new play in the previously unexplored
southern part of PL004. Following operational difficulties the Isobel Deep well was suspended.
Premier completed its exploration programme in the North Falkland Basin with the successful re-drill
of the Isobel Deep well, which confirmed the results of the original well and, in addition, discovered
hydrocarbons in shallower sandstone horizons.
Summary of regulatory regime and licence terms in the Falkland Islands
The Offshore Mineral Ordinance 1994, as amended (the “Mineral Oil Ordinance”) governs oil and
gas exploration and production activities in the Falkland Islands. The Mineral Oil Ordinance provides
for a licensing regime, whereby exploration and production licences are granted to oil and gas
companies. The Mineral Oil Ordinance is supplemented by various environmental and health and
safety laws and regulations. Licences are valid for a sequence of terms. Each licence expires
automatically at the end of each term, unless the licensee can demonstrate that sufficient progress
has been made under the licence to warrant moving into the next term. The first phase of the
exploration period is set between three to eight years.
Licensees may enter additional phases of varying durations, but the licence expires at the end of a
first phase if the relevant work programme is not completed or the Governor of the Falkland Islands
has not approved a development plan. The production period is 35 years, or longer if needed to
complete production.
The terms and conditions of every licence are prescribed in a series of model clauses, which are
set out in statutory instruments deriving from the Mineral Oil Ordinance (the “Minerals Ordinance
116
Model Clauses”). The Minerals Ordinance Model Clauses applicable to a particular licence are
those which are in force at the time it was granted. For the purposes of the following summary, the
Model Clauses applicable to the Premier Group’s licences are materially the same. The Minerals
Ordinance Model Clauses govern the operation of the licence and deal with matters such as: (i) the
exploration, appraisal and production periods; (ii) extension of the licence by agreement; (iii) the
licensee’s obligations to carry out the work programme during the initial term, to obtain approval for
a development and production programme and to obtain consent before drilling a well; (iv) an
indemnity by licensees for the benefit of the Governor of the Falklands for any third party claims;
(v) joint and several liability of licensees; (vi) restrictions on and consent for assignment;
(vii) consent for change of control; and (viii) a power to revoke the licence in certain circumstances
including insolvency of a licensee, a transfer of the licence without approval, change of control, or
breach of any of the licence terms. Licensees are responsible for preparing, submitting and (once
approved) carrying out a decommissioning programme in relation to offshore oil and gas
installations and pipelines in the licence area.

[chinahere] 16/12/2020 18:49

(A) Sea Lion Phase 1—development asset, 60 per cent. operated asset
Sea Lion is located 220 kilometres north of the Falkland Islands, and lies in 450 metres of water.
The geological setting is a north-south Atlantic failed rift with primarily early cretaceous to tertiary fill
in a typical half graben structure with a large bounding fault in the east. Sea Lion is close to the
eastern margin and is fully appraised.
Sea Lion Phase 1, in which Premier has a 60 per cent. operated interest, will recover 250 mmbbls
(gross) of resources in the PL032 licence over 20 years. It will be developed utilising a conventional
FPSO base scheme, similar to the Catcher development.
During FEED, which is now completed, Premier worked collaboratively with its contractors to
optimise the facilities design and installation methodology of the development. The project is at a
mature stage of definition and has been substantially de-risked from a technical, cost and schedule
perspective.
Premier completed a Preliminary Information Memorandum in 2019 supported by a comprehensive
set of independent expert reports on the project. These formed the basis upon which Premier
sought financing guarantees for the senior debt component of the project financing which were
submitted to export credit agencies in July 2019. The proposed farm out with Navitas Petroleum,
together with the vendor funding for the project by the contractors and the senior debt financing
component, would reduce Premier’s share of pre first-oil capex from US$500m to below US$300m.
In 2020, Premier took the decision to suspend Sea Lion Phase 1 to minimise ongoing spend in
light of the current market conditions. Sea Lion Phase 1 is complete from a technical aspect and all
of the work which has been done to date has been fully documented such that the project can be
reactivated once the macroeconomic outlook improves and Premier’s creditor position better
supports the funding of the project. In the meantime, a reduced team continues to work with the
Falkland Islands government on licensing, fiscal and regulatory matters.
Premier’s partner in Sea Lion Phase 1 is Rockhopper (40 per cent.). Production from Sea Lion
Phase 1, once on-stream, is forecast to continue for 20 years.

[chinahere] 16/12/2020 18:49

6.5 Falkland Islands
The Falkland Islands is a British Overseas Territory with formal British diplomatic representation
provided by the Governor of the Falklands. The Falkland Islands is internally self-governing except
in the areas of foreign affairs and defence for which the UK Government retains responsibility.
In July 2012, Premier farmed in for 60 per cent. of Rockhopper’s exploration licence interests in the
North Falkland Basin, including Sea Lion. The Rockhopper Acquisition was completed in
October 2012 and Premier assumed operatorship of Sea Lion in November 2012. In January 2016,
Premier and Rockhopper executed an amendment to the original sales and purchase agreement for
the Rockhopper Acquisition, whereby the development carry of US$674 million would be split
equally between the Sea Lion Phase 1 project and the next development phase.
During 2019, Premier launched a farm down process to bring in an additional equity partner into the
Sea Lion project to optimise the Premier Group’s level of participation in the development. In
January 2020, Premier and Rockhopper agreed a detailed heads of terms with Navitas Petroleum to
farm in for a 30 per cent. interest in Sea Lion and these terms were finalised during 2020. The
proposed farm-out of the Sea Lion licences to Navitas is subject to Falkland Islands government
and, pursuant to the Merger Agreement, Chrysaor approval.
The overall strategy to develop the discovered reserves and resources in the North Falkland Basin
remains a phased development solution. The 530 mmbbls (gross) Sea Lion project is a material
opportunity for the Premier Group and its partner. The Sea Lion Phase 1 project will develop 250
mmbbls (gross) from the reservoirs in the PL032 licence. A subsequent Sea Lion Phase 2 project
will develop a further 300 mmbbls (gross) of contingent resource mainly in the north of the adjacent
PL004 licence. There is a further 300 mmbbls (gross) of near field exploration potential which could
be included in the Sea Lion Phase 1 and Sea Lion Phase 2 projects. Phase 3 of the Sea Lion
development will target the Isobel/Elaine fan complex in the south of the PL004 licence, subject to
further appraisal drilling.
In November 2019, the Falkland Islands government extended the PLO32 licence until 1 May 2021,
with no additional licence commitments. The licensee was previously due to expire in April 2020.
Net to Premier, 2C resources for the region are estimated at 392 mmboe as at 31 December 2019,
which represents 46.3 per cent. of the Premier Group’s total reserve and resource base.

[chinahere] 16/12/2020 17:54

Page 115 onwards is the meat for us.

[gozzie2] 16/12/2020 17:23

He said that rockhopper spent a lot because of premier wasting money , so maybe we should cut Curly some slack lol .

[trop2] 16/12/2020 17:20

Breaking news big sams going to the baggies!

[chinahere] 16/12/2020 17:06

Probably - the combined group's 60% of Sea Lion reserves is 43% of all their reserves.

We still have the other 40% until the Navitas deal is done.

[datos] 16/12/2020 16:44

How much nut1 ?

[brazilnut1] 16/12/2020 16:26

Just read an article on Chrysaor actual bbls plus reserves and if true the total is smaller than Sealion ?

[gozzie2] 16/12/2020 15:43

Lol I'm listening to Boris i can't.

[datos] 16/12/2020 15:40

Gozzie you took it the wrong way. Chill Pill time, or a cup of tea

[gozzie2] 16/12/2020 15:28

In fact its basically pointless being on here anymore, il just contact him for advice in future if there's any news .Atb merry Xmas

[gozzie2] 16/12/2020 15:26

I thought it was good of him to reply .His Cv is fantastic. If this guy doesn't know whats going on who does .He knows more than the cl0wns on these boards lol.

[gozzie2] 16/12/2020 15:24

My name is Steven I messaged william david hartnell .He signed off as Dave .Why do I bother lol in future il keep my information to myself .

[gozzie2] 16/12/2020 15:22

What datos ?

[datos] 16/12/2020 15:20

WTF Stephen, Gozzie, Dave ...more identities than the master of disguise Nigella

[trop2] 16/12/2020 15:08

Charming merryxmas

[gozzie2] 16/12/2020 14:53

They don't need Ukef anyway like he says .

[gozzie2] 16/12/2020 14:51

Hes not saying premier had no interest in it though .

[gozzie2] 16/12/2020 14:50

F#ck off trop .