Falklands Oil Project Moves Forward After Significant Rockhopper Fundraising

Rockhopper Exploration has secured 142 million dollars through a share placing on Londons junior equity market, bringing the long anticipated Sea Lion oil field project in the North Falkland Basin a step closer to production. The funding, raised through the placing of new shares at 53 pence, covers the entire equity portion required for the first phase of the offshore venture valued at 2 point 1 billion dollars. An open offer has also been launched, potentially raising an additional 7 million pounds.

Rockhopper, holding a 35 percent stake in the project, is joined by Navitas Petroleum which leads the development with a 65 percent share. The Sea Lion field, located 136 miles north of the Falkland Islands and extending 1 point 6 miles beneath the seabed in water depths approaching 1,500 feet, is estimated to contain over 900 million barrels of oil. The initial development phase targets 170 million barrels with peak daily production expected to reach 50,000 barrels. First oil is anticipated by 2028.

Sam Moody, Chief Executive of Rockhopper, described reaching financial close as the most significant milestone for the company since the field’s discovery in 2010. The final investment decision, announced on 10 December, follows notable progress by Navitas in re engineering and financing the project since joining as operator.

The government of the Falkland Islands will benefit from a 9 percent royalty on project revenues and a 26 percent corporation tax on profits. Regulation and taxation of oil activities in this British overseas territory are managed locally, without Westminster’s involvement. Since the original discovery, the project has attracted political attention, most notably from Argentina which disputes British sovereignty over the island territory and has previously threatened legal action against companies operating in the area.

The Sea Lion development marks a pivotal moment for the islands’ economy as the resource advances into full development following years of exploration and political uncertainty.