ROCKHOPPER EXPLORATION North Falkland Basin (NFB) Explora on Capital Markets Day March 2015
1 Important No ce
This Presentation does not constitute an offer or invitation or a solicitation of any offer or invitation for the sale or purchase of any securities in the Company. In addition, it is not intended to form the basis of or act as an inducement to enter into any contract or investment activity and should not be considered as a recommendation by the Company to do so.
Certain statements in this document are forward-looking statements which are based on the Company's expectations, intentions and projections regarding its future performance, anticipated events or trends and other matters that are not historical facts. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that would cause actual results or events to differ from current expectations, intentions or projections might include, amongst other things, changes in oil prices, changes in equity markets, failure to establish estimated petroleum reserves, political risks, changes to regulations affecting the Company's activities, delays in obtaining or failure to obtain any required regulatory approval, failure of equipment, uncertainties relating to the availability and costs of financing needed in the future, the uncertainties involved in interpreting drilling results and other geological, geophysical and engineering data, delays in obtaining geological results and other risks associated with offshore exploration, development and production. Given these risks and uncertainties, readers should not place undue reliance on forward-looking statements. Forward- looking statements speak only as of the date of such statements and, except as required by applicable law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
The information in this Presentation, which does not purport to be comprehensive, has not been verified by the Company or any other person. No representation or warranty, express or implied, is or will be given by the Company or its directors, officers, employees or advisers or any other person as to the accuracy or completeness of the Presentation and, so far as permitted by law, no responsibility or liability is accepted for the accuracy or sufficiency thereof, or for any errors, omissions or miss-statements, negligent or otherwise, relating thereto. In particular, but without limitation, (subject as aforesaid) no representation or warranty, express or implied, is given as to the achievement or reasonableness of, and no reliance should be placed on any projections, targets, estimates or forecasts and nothing in this Presentation is or should be relied on as a promise or representation as to the future. Accordingly, (subject as aforesaid), neither the Company, nor any of their respective directors, officers, employees or advisers, nor any other person, shall be liable for any direct, indirect or consequential loss or damage suffered by any person as a result of relying on any statement in or omission from the Presentation or any other written or oral communication with the recipient or its advisers in connection with the Presentation and (save in the case of fraudulent misrepresentation or wilful non-disclosure) any such liability is expressly disclaimed.
In furnishing this Presentation, the Company does not undertake any obligation to provide any additional information or to update this Presentation or to correct any inaccuracies that may become apparent.
2 GREATER MEDITERANEAN OVERVIEW
Rockhopper Overview
3 Rockhopper Corporate Overview
§ Our strategy is to create value through building a well-funded, full-cycle, explora on led E&P company
§ We aim to do this by:
§ Maintaining balance sheet strength and flexibility
§ Building a balanced por olio of assets in our core geographical areas of the North NORTH FALKLANDS BASIN Falkland Basin and the Mediterranean / North African region
§ Leveraging our technical skill set to target value accre ve explora on in proven hydrocarbon basins
GREATER MEDITERRANEAN
4 Rockhopper Key Metrics
Reserves 2P 1mmboe
Con ngent Resources 2C 182mmboe
Prospec ve Resources P2 622mmboe
Financial data
Cash c.$200 million* Debt $0 million
Shares in issue 293 million Market cap at 65p $295 million** EV $95 million EV/2P+2C $0.52 boe
* as at 31st Dec 2014 ** USD:GBP 1.55 5
Indica ve Ac vity Schedule
6 GREATER MEDITERANEAN OVERVIEW
Sea Lion
7 Sea Lion pre FID work con nues $70mm JV pre FID spend 2015
Target FEED award Q2 2015
Target sanc on H1 2016
14 development wells Low cost phased FPSO solu on § 8 producers § 5 water injectors $1.8bn to first oil (at Nov 2014)
§ 1 gas producer / injector c. $11.25 per bbl § 9 pre-drilled Further savings an cipated 160 mmbbl over 15 years
8 GREATER MEDITERANEAN OVERVIEW
2010-2012 campaign review Rockhopper track record Basin knowledge
9 North Falkland Basin 2010-2012 – campaign results
§ Discovered & appraised Sea Lion § Significant oil discovery
§ Discovered the satellite fields § Casper, Casper South, Beverley
§ Total gross discovered resources § c 400mmbbls recoverable oil § 1.8Tcf gas
§ Extensive data collec on § Full suite of down hole logs § 450m core
§ RKH retained sub-surface lead for explora on in farm out to PMO
$/boe 10Yr Ave Finding Cost (inc Discoveries & Revisions) Rockhopper Total Exxon Mobil Petrobras (IFRS US$) Royal Dutch Shell Chevron ConocoPhillips BP 0 1 2 3 4 5
10 2010-11 Rockhopper Operated Campaign
10 wells 400mmbbls rec. oil Zero environmental 2 DSTs Opened a new hydrocarbon province 1.8 Tcf gas incidents 2x 3D vessels
11 Subsurface Data and Analysis Unique knowledge of Sea Lion sub surface
Appraisal Campaign Overview Loca on
§ Exploration well 8 km north of 14/10-2, penetrating northern SL30 14/10-3 fan good reservoir section sealed from main hydrocarbon-bearing reservoir to the south
§ Drilled to test a location to the east of lowest structural point of 14/10-2 Sea Lion 14/10-4 SL20 fan. The well penetrated the OWC which has proven to be Discovery Well a common contact for the SLMC across the field area
§ Drilled updip of discovery well to penetrate thick section of 14/10-5 stacked SL20 and SL10 fans and provide optimal location for DST - DST stabilised flow of 5,508 bbl/d maximum flow rate of 11,000 bbl/d through separator
§ Step out well to west of structural saddle to prove depositional 14/10-6 model of extensive mass flow fans and hydrocarbon charge to the west
§ Drilled to test reservoir presence and quality at edge of amplitude 14/10-7 bright and to determine whether reservoir edge delimited by amplitude or pinch out
§ Exploration well to look for additional prospectivity in licence, 14/10-8 testing Casper SLMC and Kermit in optimal location that penetrated all three reservoirs
§ Step out to south in new fast track data area to expand proven 14/10-9 discovery area, to test reservoir continuity and presence of SL10 and SL20 as stacked fans in location above the OWC
§ Significant step out to test SL10 at its southern extension and to 14/15-4 test presence of Beverley and Casper South
12 Amended well design, post well 14/10-6 RKH amended well design – cost & schedule improvement
Ini al Well Design Progressed Well Design
30” x 20” TOC to 30” x 20” TOC to seabed (ROV observed) seabed (ROV observed)
30” x 20” @ 30” x 20” @ shoe @ 522m TVDSS Shoe @ 522m TVDSS
3 13 /8” (L80, 68# Dino Vam) 3 casing @1,168m TVDSS 13 /8” (L80, 68# Dino Vam) shoe @1,174m TVDSS
5 9 /8” TOC 1,500m
5 9 /8” (L80, 47#, Vam Top) shoe @ +/-2,370m TVDSS Target forma on +/- 2,400m TVDSS
1 1 8 /2” TD @ 2,700m 8 /2” TD @ 2,700m TVDSS TVDSS
13 2010-2012 – Rockhopper opera onal performance
• Ave spud to TD me post 14/10-6 : 13 days • Total Metres drilled : 26,573m • Total core cut : 455m • Ave materials consumed / well : 865 tons • Average well cost : c.$30M
14 GREATER MEDITERANEAN OVERVIEW
NFB – geological se ng
15 Sea Lion Depositional Setting - A reminder
• North-south trending Atlan c failed ri filled primarily by Early Cretaceous to Ter ary sediments • Typical half graben structure with a large (>5,000m) eastern bounding fault • Sea Lion accumula on posi oned close to the eastern margin • Lacustrine source interval mature and genera ng oil from c.250m below Sea Lion fan interval
16 SEA LION FAN COMPLEX DEPOSITIONAL SCHEMATIC JAYNE E. ZEBEDEE CHATHAM ISOBEL DEEP
Isobel Deep Jayne East Elaine North Elaine South Catriona Chatham Emily/Lydia SL30 SL20 / SL10 Casper Casper South Con nuous fine Zebedee Grained background Beverley Deposi on from delta
F3 Fans F2 Fans
17 SEA LION FAN COMPLEX DEPOSITIONAL SCHEMATIC
18 Sea Lion fans and exploration targets
North 14/10-3 14/10-4 14/10-9 14/15-4a Zebedee (proposed) South
E1
E3
Beverley SL30 SL20 Casper South Casper
B30 SL20 3D1 SL10 Kermit
Full stack volume
Jackie NW
Josiah
Hector
Zebedee
Parker
EEI-70 lithology volume* Noggin Jayne 1 * Lithology conditioned from the well results
19 GREATER MEDITERANEAN OVERVIEW
2015 campaign
20 2015 campaign
4 wells Low to medium risk Exploration & High impact Appraisal
2015
Pmean Low cost 160mmbbls c. $6mm Net to RKH per well
21 Falklands 2015 Explora on Campaign Start Up GREATER MEDITERANEAN OVERVIEW
Pictures from Premier Oil
22 2015 – Explora on & Appraisal
Explora on ✔ ✔ ✔ ✔
Appraisal ✗ ✗ ✔ ✔
15% 15%
20% 50% Gross Pmean (complex) : Pmean : Pmean : Pmean : prospec ve resources 510 mmbbls 282 mmbbls 87 mmbbls 127 mmbbls
23 2015 – DRILLING SCHEDULE
Gross P90 53 91 21 802 prospec ve Pmean 282 72 87 127 510 resources P10 741 207 214 1424
Equity 24% 24% 24% 40% 24% Net P90 13 2 5 19 prospec ve Pmean 68 17 21 51 122 resources P10 178 50 51 342 ZEBEDEE ISOBEL DEEP JAYNE EAST CHATHAM ELAINE/ISOBEL COMPLEX 15% 15% 9% 20% 15% 12% 13% 36% 27% 11% GCoS % & 17% resource 13% distribu on 52% 20% 10% 50% 17% 20% 15% 36% 13% 10% 9% 11% 29% 17%
24 PL004b Zebedee, RKH 24% WI
§ Near field low risk, high resource explora on well, 3.4km from 14/15-4
§ 7 stacked targets with varying GCoS of 9-52%
§ Risking lowest for F2 Zebedee fan
§ Net prospec ve Pmean resource 68mmbbls (range 13-178)
§ Extension of proven Sea Lion fan play
Spectral Decomposi on at F2 level
25 PL04a Isobel Deep, RKH WI 24% § High impact moderate risk (GCoS 20%) explora on well with poten al to open new Isobel / Elaine development area (32km from 14/15-4)
§ First test of F3 fan system entering basin from the south-east margin as a sequence of offset stacked reservoirs. Fans developed in heart of mature source kitchen.
§ Complex as whole mapped to have gross Pmean resources of 510mmbbls (range 80 – 1424mmbbls)
§ First well (Isobel deep) to targets core of Isobel deep fan in area of maximum mapped reservoir thickness
§ Poten al appraisal loca on iden fied
Spectral Decomposi on at F3I level
26 PL04c Jayne East, RKH 24% WI § Test proven reservoirs of Beverley and Casper South on the eastern flank of syncline
§ Total of 5 reservoirs targeted in loca on proximal to sediment source
§ Excellent reservoir quality an cipated in F2 sands
§ Two deeper F3 explora on targets intersected which require separate deeper hydrocarbon column
§ Gross Pmean mapped resources of 87mmbbls (range 21-214mmbbls)
§ Close proximity to Sea Lion development area
Spectral Decomposi on at F3G level
27 PL032 Chatham, RKH WI 40% § Well will confirm presence or absence of non-equilibrium gas cap on western flank of Sea Lion
§ 50% chance of gas cap being absent and oil filled, adding c.65mmbbls to Sea Lion resources
§ Deeper Chatham explora on target (GCoS 17%) tes ng deltaic fed channel/ fan system entering basin from north.
§ Play opening target for other iden fied northerly fed systems
§ If successful would be accessible from a phase 1b development
Spectral Decomposi on at F3A level
28 Explora on & Impact on Sea Lion Development Phases
• Phase 1a development concept is independent of outcome of 2015 explora on programme
• Phase 1b has poten al upside in PL032 in event that Chatham / gas cap well is successful
• Phase 2 development concept will be determined by the materiality of the success of the 2015 explora on campaign
• Success at Isobel expands development area significantly
29 GREATER MEDITERANEAN OVERVIEW
NFB Explora on Costs
30 Funding Update
• Cash at 31st December 2014 c.$200 million (unaudited)
• NFB well cost es mated at $50 million gross per well
• Total net cost to RKH for all four NFB wells c.$25 million (a er carries), c $6 million per well • $48 million Explora on Carry from Premier • 2 well part carry of FOGL
• Post explora on campaign Rockhopper balance sheet remains strong
• Forecast cash end 2015 c. $125 million
• Funded on Sea Lion development via PMO carries post FID ($337 million carry on Phase 1a)
31 GREATER MEDITERANEAN OVERVIEW
Summary
32 Summary Well placed for 2015 and beyond
§ High impact 4 well campaign in the NFB § 2 explora on wells, 2 combined appraisal/explora on
§ Poten al to double resources
§ Total es mated cost to RKH c.$25 million, c. $6 million per well
§ RKH fully funded for both explora on and the Sea Lion development
§ Well funded & posi oned for growth in the current market environment
33 Board of Directors
DR. PIERRE JUNGELS, CBE - Chairman SAM MOODY - Chief Execu ve Officer PhD in Geophysics & Hydraulics from California Co-founder of Rockhopper Explora on. Previously at Ins tute of Technology. Previously worked at Shell, AXA Equity & Law Investment Management, St. Paul’s PetroFina, and Enterprise Oil. Investment Management.
FIONA MACAULAY - Chief Opera ng Officer STEWART MacDONALD - Chief Financial Officer Geologist with more than 25 years experience in the oil Previously a Director in Rothschild's global oil and gas & gas industry including me at Mobil, Amerada Hess, group and spent 12 years advising clients in the sector on and BG Group. a range of M&A transac ons as well as debt and equity financings.
KEITH LOUGH - Non-Execu ve Director DAVID McMANUS - Non-Execu ve Director Chartered Cer fied Accountant with over 30 years Petroleum Engineer with 35 years experience in the oil energy industry experience including senior roles with & gas industry. Previously worked for Shell, Ultramar, LASMO, Petrokazakhstan, and Bri sh Energy. ARCO, and BG Group
JOHN SUMMERS - Non-Execu ve Director ROBERT PETERS - Senior Independent Director Geologist who worked at Bri sh Gas / BG Group for 29 Solicitor previously with Imperial Chemical Industries and years. His roles included Chief Geologist, GM Mayer Brown Technology & Performance and VP New Ventures.
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