Rockhopper was founded in 2004 to explore for oil and gas in the Falkland Islands. It received a listing on the AIM market in 2005. On 16 April 2010, Rockhopper commenced drilling of its first exploration well, 14/10-B on its Sea Lion prospect using the Ocean Guardian semi-submersible drilling rig. On 6 May 2010 the company announced it had made the first oil discovery in the Falkland Islands in well 14/10-2. An update of the first appraisal drill was released in March 2011 indicating a significant reservoir package with a downhole mini drill stem test flowing oil at better rates than in a September 2010 flow test on well 14/10-2. Confidence in the commerciality of the Sea Lion discovery was increased by this first appraisal. On 27 June 2011, the company announced that its second Sea Lion appraisal well flowed at commercially viable rates. In July 2012, Rockhopper announced that it had entered into a conditional farm out agreement with Premier Oil plc whereby Premier will acquire 60% of Rockhopper's interests in its North Falkland Basin licences in exchange for an upfront cash payment of $231m, a contribution of $722m to Rockhopper's share of the Sea Lion development costs and a net exploration carry of $48m. Rockhopper will be fully funded on its share of the Sea Lion development through the contribution to costs and standby financing provided by Premier. First oil from Sea Lion is expected in 2020.
Licences
Rockhopper holds interests in production licences PL023, PL024, PL032 and PL033 covering approximately 3800 km2. In 2005 it farmed into licences PL003 and PL004 operated byDesire Petroleum plc. In 2011, Rockhopper increased its share of PL004b from 7.5% to 60.0% and in PL004c from 7.5% to 25.0%. Licence PL004b contains an extension to the Sea Lion field as well as the Beverley, Casper and Casper South discoveries.
Board of directors
The Rockhopper board comprises eight directors; a non-executive chairman, three executive directors and four non-executive directors, one of whom acts as senior independent director. Four of the non-executive directors are considered to be independent. The majority of the directors have been with the company since its flotation in 2005. The board was reorganised in 2010 and two additional non-executive directors were appointed. The non-executive directors have a range of technical, financial, legal and operational experience which is relevant to the management of the company. The board is responsible to shareholders for the creation and protection of shareholder value. The board retains full and effective control over the company and it has a schedule of matters reserved for its approval covering strategy, key financial and compliance matters, significant operational and management matters including HSE. There are clearly defined lines of responsibility and executive management has a number of financial and operational responsibilities delegated to it.
