Rockhopper completes $20m share offer for Falklands project

Rockhopper Exploration has concluded a secondary share offer to shareholders, securing approximately $20 million in gross proceeds. The AIM-listed company announced the results on Wednesday, confirming that the second tranche of fundraising was fully subscribed. This capital raise follows an earlier placement in August that generated $180 million, bringing the total fresh funding for the Sea Lion prospect in the Falklands to around $200 million.

The latest offer attracted significant interest, with 118% of eligible shareholders participating. This sustained investor appetite persists despite political tensions in the region. Argentine President Javier Milei has threatened sanctions against the oil and gas development, asserting sovereignty over the islands. He stated that the islands belong to Argentina and were taken from the country. Rockhopper holds a 35% stake in the Sea Lion development, with Israel-based Navitas Petroleum acting as the operator.

The raised funds are primarily intended to finance Rockhopper’s share of a second floating production, storage and offloading vessel, designated OSX-1. Navitas estimates that this addition could increase production capacity by 125,000 barrels of oil per day. The initial development phases will utilise the FPSO Aoka Mizu, which has a capacity of 55,000 barrels per day. The cost of acquiring the OSX-1, excluding upgrade expenses, is estimated at approximately $125 million. The partners anticipate that drilling and completion works will commence in early 2027, with first oil expected in the first half of 2028.